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Mon 31 Jan, 2011 10:33 pm
It is official! Income Tax Hating Season is Open! At least for me it is! Just filed for my 2010 US income taxes tonight after getting my W2 in the mail today.
Getting back $729 in my Federal Income tax refund. For the past 8 or 9 years, it seems like I usually get $1000+. And horror of horrors, I OWE $165 to the sadsack state of New York.
Definitely not a boon year for me.
HOW ABOUT YOU? HAVE YOU STARTED FILING YOUR TAXES? E-filing them? Do you wait until the last minute? Do you do them yourself or do you use an accountant? Are you expecting a refund or a big ole nasty tax bill?
@tsarstepan,
I'm carefully sneaking cash out of the ol' IRA just as fast as I can - without paying taxes. Haven't filed yet, but I believe I've worked the system pretty well again.
Still awaiting one last form to file.
@edgarblythe,
Waiting for W2s and the like.
@tsarstepan,
I used to get my tax software and enter in all the information as I received it in the mail. That ended up being pretty inefficient. Now I wait until mid Feb when I have everything and just type it in. Tax software is so good these days that even a return of medium complexity is pretty straightforward. The hardest part is valuing all the stuff we give away to local charities.
Quote:Getting back $729 in my Federal Income tax refund. For the past 8 or 9 years, it seems like I usually get $1000+.
You should consider changing your withholding if it is that consistent. Why give the government a tax free loan of your money?
@engineer,
Quote:You should consider changing your withholding if it is that consistent. Why give the government a tax free loan of your money?
It can be seen as something of a savings of money that would otherwise be frittered.
@InfraBlue,
But it is saving it in an interest free account and if the government decides the budget is behind, they delay payment of tax refunds (several states have done this, not the feds).
@engineer,
engineer wrote:
You should consider changing your withholding if it is that consistent. Why give the government a tax free loan of your money?
I do it, because the government NEEDS that loan. It's a small way I can help and doesn't really affect me.
Getting back 5k plus this year. Educational expenses and interest deductions FTW!
Cycloptichorn
@engineer,
Yeah, that's the bad thing; it's interest free.
Wow, I didn't know that some states delay their payment of refunds. We don't have an income tax in Texas. I'm glad the Fed isn't a deadbeat--as of yet.
@engineer,
Quote:You should consider changing your withholding if it is that consistent. Why give the government a tax free loan of your money?
I'll give it a try. But how do I manage this? How do I approach my payroll with this proposal? Is there a set
request I can use so they can understand my request without having them mess up my entire check?
@InfraBlue,
New York State does delay its refunds the later into the tax season it gets. That's one of the main reasons I file so early. File early, don't get hit with the state revenue department's unknowing hesitation in releasing the refunds.
This year, the issue is moot giving I owe NY State.
@tsarstepan,
tsarstepan wrote:
I'll give it a try. But how do I manage this? How do I approach my payroll with this proposal? Is there a set request I can use so they can understand my request without having them mess up my entire check?
You file a W-4 with your employer telling them how much taxes to take out. All you need to do is file a new W-4 with corrected information.
@engineer,
Considering the interest rates available to most of us on FDIC insured accounts, it's hard to get serious about losing the interest on an overpayment of ~ $800. With Wells Fargo and BOA, it amounts to maybe $40.00, and that's if the entire overpayment were made on Jan 1.
@engineer,
engineer wrote:tsarstepan wrote:I'll give it a try. But how do I manage this? How do I approach my payroll with this proposal? Is there a set request I can use so they can understand my request without having them mess up my entire check?
You file a W-4 with your employer telling them how much taxes to take out. All you need to do is file a new W-4 with corrected information.
I've e-filed with Turbo Tax for years and they often give you an option near the end if your withholding is too low or too high -- it's a W4 form. You print it and send it to payroll and just ask them to update their records.
@jespah,
Neat. Payroll is required to process them within 30 days. I believe they are also required to furnish the forms, but don't quote me.
@roger,
Let's say it is just $20 every year - for a ten minute time investment. That's a pretty good payback on your time.
@engineer,
I used to use an overpayment as a forced savings plan that I was then able to use for a trip or major purchase in the spring. I wasn't disciplined enough to not spend the difference on junk I didn't really want with that extra money coming in in my regular paycheck. I eventually set up an automatic savings plan that put the extra (and 10% of my tax burden) aside throughout the year. The trick was guessing what 90% of my tax burden would be so that I'd have to pay in the other 10% on April 15th and not have an underpayment penalty. In all the years I've been doing it I've only had to pay the penalty once, but I get interest on that 10% instead of giving it to the gov't early.
@JPB,
That's what we do, but we file quarterly. We just sent in the check for January's filing last week, so we'll probably get hit with a penalty...but it won't be much, if anything. It's been working pretty well, so far.
I don't usually think about doing taxes until mid-March
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