Comments on: 6 Reasons a Tax Refund is Called Losing

By: James

James — Thu, 15 Feb 2018 18:13:54 +0000

…. Unless you’re talking about the EITC or ACTC in which case you are actually getting a whole lot of free money.

By: The Frugal Momster Looks Back at Our 2016 Expenses | Kate Nesi

The Frugal Momster Looks Back at Our 2016 Expenses | Kate Nesi — Tue, 07 Feb 2017 16:56:44 +0000

[…] I don’t like to loan money to the federal government. Instead, I like to keep that money in my pocket all year and use it how we […]

By: Peach

Peach — Thu, 04 Feb 2016 18:39:37 +0000

In reply to Kd. Kd, As you go through the IRS Calculator, you will see something like this for the last page after a series of questions: "Your Results Based on the information you previously entered, your anticipated income tax for 2016 is $11,265. If you do not change your current withholding arrangement, you will have $16,485 withheld for 2016 resulting in an overpayment of $5,220 when you file your return. If you want your withholding to more closely match your anticipated tax, adjust your withholding on a new Form W-4 as follows: For the only job you entered (which has a projected salary of $66,000): 1 allowance. Check the “Single” box on your Form W-4 (this is what the IRS Caclulator is recommending in this situation) Assuming this recommendation is in effect for the rest of 2016 your expected refund should be about $125. Following this recommendation will ensure that the amount withheld from your wages will cover all of your projected tax liability while minimizing your refund. Tip Be sure to review your withholding at the beginning of 2017 (or any time there is a change in your tax situation). If you follow the above recommendation and do not check your withholding at the beginning of next year, your withholding for 2017 might be incorrect." Depending on what you enter, the IRS Calculator will give you some recommendations so you end up much closer to what you are supposed to be paying the IRS. Great question! :)

By: Kd

Kd — Wed, 03 Feb 2016 01:57:57 +0000

So what do you do with the number that the IRS withholding calculator gives you?

By: Kalie @ Pretend to Be Poor

Kalie @ Pretend to Be Poor — Tue, 02 Feb 2016 13:46:00 +0000

I couldn’t agree more! It’s really awful that there is a whole consumer marketing campaign centered around blowing your tax return, as if it’s free money. This irks me so much every year. Thanks for dispelling the myths here.

By: Josh

Josh — Fri, 29 Jan 2016 14:06:12 +0000

I like the tips. #5 is true, especially because I lived in a state for two tax years that has a state income tax. I got a statement this week from Kentucky that said our state refund of $400 for tax year 2014 was being furnished as income to the IRS for 2015. Gotta love it.