Texans are liable for federal taxes just like the rest. He's got some personal exemptions to claim I suspect. Texas and Florida do not have state income tax, though.

 

+1

 

I'm with y8s on this one. I spend 20 minutes with a spreadsheet twice a year to ensure that my w4 deductions are right.

I adjust them as necessary, based on my expectations (early in the year) and actual circumstances (september/october) to ensure that I get or owe as close to zero as possible.

Giving interest-free loans to uncle sam is for suckers.

 

You are correct, I always try to get the minimum taken out without having to pay penalties.

 

Yup, Econ101 a dollar today is worth more than a dollar tomorrow.

I typically owe about $100

 

I'll take my money when I earn it and pay my taxes when I have to. Money in my pocket now is better than money in my pocket later. I usually owe 1K or so every year from my summer job.

 

Withholding sucks. People don't really feel how bad the feds are giving it to them.
If you had to write a check for it all at the end of the year, you wouldn't stand for it.
Withholding was supposed to be temporary. It was started during WWII.
Income tax was supposed to be temporary. It was started during WWI.
In 1950 it was 3%.

P.S. We threw England out and had a revolution over a 3% tax.

 

Agreed. If I net out at zero or owe a bit, that is about right.


I wouldn't automatically add the penalty. Just pay the tax when you file. If you received a refund the previous year, they oftentimes will let it go because it just doesn't throw up a red flag. Make them come back to ask for the penalty. If that is the case, they send you a bill and you just pay it. If you paid in last year and owe more than $700 this year, they may ask for the penalty.

This was the advice for me from my preparer who used to be an IRA auditor. One year I owed more than the "limit" and technically owed the penalty. I just paid the tax and they never came back to me.

 

I spend the time each year to get my withholding "right," but I like to find extra deductions. In that case, a refund is just a bonus!

 

In the past, I've always owed at least $5k and been exempted from past stimulus packages. Even though I have to pay underpayment penalties, it's still a profitable interest-free loan. This year, I took some significant losses in Q4, so I'll probably be getting a refund. Suck.

 

speaking of interest free loans, I'm looking forward to the $7500 tax credit for new home buyers. granted it's gotta be paid back, but without interest and over 15 years. sweet.

 

Getting $1600 back. I can be claimed as a dependent by my parents for '08...idk if that makes the difference. I'm debating using the $$ towards a begi-s kit.

 

I really doubt this is correct. I have over 200k in loans and you can barely even deduct interest (there's a limit obviously). Had a CPA do my taxes and I did it again on my own in TurboTax. Same results. Audit FTL.

 

If anyone wants a copy of Turbotax Deluxe, email me at ptschmidt @ gmail.com

 

I get the best of both hustler and levnubhin's...I'm a college student with a 2yr old.

Student deductibles + child + lots payed in = big friggin return

How else did you guys think this newb's turbo project was gonna happen?

 

I also wait as long as possible to send them my money.

 

I agree with sixshooter. If everyone had to write a check at the end of the year they would be livid about the government waste. It's way more tangible whenever the government rips the money out of my hands. Oh well, at least some of it's going for a good cause... wouldn't want poorly manged banks and auto makers to suffer.

BTW I have to pay out every year and this year it will be close to $6,000

 

I am getting about $500 back. It will all go straight to my credit card.

 

At higher incomes the student interest deduction is phased out. If you weren't making so much damn money you wouldn't have this problem. Poor guy.

 

Did my fed taxes yesterday ($600 back). Tried to do my state taxes but shitty South Carolina doesn't even have the forms online yet (still have 2007 tax year posted). How hard is it to change the date on the top of the form? Anyway, using the tax tables from last year it looks like I am getting $1000 back from SC. So, $1600 back this year. Same as last year. I thought I had changed my withholding but I guess I didn't :(

For those of you who WANT to get money back at the end of the year, you really ought to think about the financial repercussions of that. Using the federal govt as a Zero interest bank is not the best you can do. I don't really want to have to write a big check at the end of the year (although financially it makes sense but emotionally it would screw with my head) but breaking even would be fine with me.

(Did I actually just type that paying $20,000 in taxes is breaking even???)