Some tax breaks this year...

**imported_elp6n** · March 23rd, 2010, 10:12 PM

Not everyone has the privilege of a big fat refund check. More work and no dependents mean you get to be the one to support everyone else because the government keeps your money while many others can get all their federal tax refunded, if not more.

All my coworkers had tax refunds of $3000-$6000, more than they paid in.
I owe. In the past I've owed as much as $1000 (never trust an IRS calculator or multi-job tax worksheets). I've gotten a tax refund once in my adult life.

My tax bill is not only enormously higher than my similarly paid coworkers (at my salaried job), I get none of it back because I work more and haven't popped out any kids. My self employment tax for contract jobs increased by a grotesque amount. I get taxed extra just for working more, in addition to paying federal and state on that extra work.

Yes I took every credit possible. I discussed the work credit with our accounting department before it was implemented. I still increased my withholding. That particular credit doesn't necessarily benefit multi-job holders. I've worked on my taxes for well over a month, a little at a time. I have to fill out a stack about an inch thick.

**Counts** · March 24th, 2010, 09:15 AM

I got back a little less but close enought to not worry about it to much.

My co-workers had vering degrees of success but no where near the 95% r13 was boosting of (closer to a 50/50 split)

**sup-rbeast** · March 24th, 2010, 09:15 AM

You can only get the making work pay for your primary job. If you work more than one, and they deduct it from your withholdings on each job, you have to give back all except the withholdings on the primary job. I know I got roughly $90 bucks extra per check (I get paid once a month)..and that was part of the making work pay tax break. So, some folks got all or part of it on their paychecks throughout the year.

**CoeburnCane** · March 24th, 2010, 09:31 AM

Originally Posted by red66

I bought my first home so I got the first time home buyers credit. Will be getting a nice fat check in the mail here in a few weeks.

Expect to get audited. The wife and myself bought our first home in July 09, we filed an amended 2008 return to claim the first-time homebuyer credit late that month. We didn't hear a thing back from the IRS til Thanksgiving, and that was wanting more information on our purchase of the home to ensure that it was indeed our first and primary residence (that we hadn't owned another home in the past and/or were trying to claim a purchased rental property).

They're auditing over 85% of these claims due to fraud and misunderstanding of the criteria that makes people eligible. Also, the IRS was woefully understaffed to take on the amount of interest that this credit has generated. In the words of an IRS agent I spoke with, "we didn't expect this to be so popular".

It's 8K for purchasing a home for the first time...of course it's gonna be fargin popular! I could not believe they tried to use that as an excuse.

It's near the end of March 10, and we're still waiting on not only a check, but a final determination on our return even though we've given all the information they requested and then some. They even lost some of it in the mail room in Atlanta, and due to that--an examiner closed the return in mid-February. It's now in the hands of the Closed Claims Committee to make a determination on the evidence that they've had in their hands since November but said they didn't have. I plan to get in touch with the Hardship Committee to try to speed them up, but I don't know that it will help any if at all.

All I'm saying it, expect a hard time getting your credit back. If you're lucky enough to be in the 15% or so that doesn't have this audited, count your lucky stars.

**R13** · March 24th, 2010, 12:19 PM

Originally Posted by Counts

I got back a little less but close enought to not worry about it to much.

My co-workers had vering degrees of success but no where near the 95% r13 was boosting of (closer to a 50/50 split)

I didn't say that 95% got a higher refund, I said 95% got a tax cut due to the Recovery Act, which they did..and that the average household got 10% more back this year, which they did.

**sup-rbeast** · March 24th, 2010, 12:43 PM

Originally Posted by R13

I didn't say that 95% got a higher refund, I said 95% got a tax cut due to the Recovery Act, which they did..and that the average household got 10% more back this year, which they did.

Tax refunds rely a great deal on how a person filled out their W-4 when they were employed and how much they are funneling into tax sheltered accounts ...so, IMO the average size of refunds isn't a very reliable source for any kind of tax study. Differences in tax laws, and available deductions are tho...and this year folks were given help, whether they realize it or not.

**Counts** · March 24th, 2010, 01:25 PM

LOL how silly of me to go by the amout of tax I paid during the year - the amout of refund I got to determin if I paid more or less in taxes.....So if I can not use that formula pray tell me how i can conferm that I am part of the happy 95%

**R13** · March 24th, 2010, 02:30 PM

Originally Posted by Counts

LOL how silly of me to go by the amout of tax I paid during the year - the amout of refund I got to determin if I paid more or less in taxes.....So if I can not use that formula pray tell me how i can conferm that I am part of the happy 95%

I didn't do you're taxes of course, but odds are you qualified for a credit/cut with this act. There was 25+ new ones this year, you more than likely qualified for at least one of them, esp. ones like the Making Work Pay credit. All I'm saying.

**sup-rbeast** · March 24th, 2010, 02:32 PM

What I'm saying is if a person has a family of 4 and claims 0 dependents on their W-4, they'll get a huge refund at the end of the year. If the same person claims 3 dependents on their W-4 they will get more per paycheck but less come tax time. So, the refund isn't reliable to determine much...especially after folks were told last year change was coming to the tax code. Traditionally, when an announcement like that is made, many folks change their W-4 to ensure they don't owe at the end of the year. If they claim less dependents on their W-4, their refund will go up. And, you can change that info at anytime. So, to get more accurate info on the average return, look at the new credits and deductions. I wasn't talking about individual returns, I was talking about the claim that the average refund went up or down. But a sure way to increase the amount of your REFUND is to claim less dependents on your W-4.