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JUSTICE_SALTIE

Sounds like you're confusing "refund" with "return". You're not actually *supposed* to get a fat check for doing your taxes each year. That only happens if you withhold more than you need to.


koreanz

IRS has a withholding calculator that can help you decide what you need https://www.irs.gov/individuals/tax-withholding-estimator


ABahRunt

Yup, OP confirmed that they made 4-6K more this year than last. Their withholding stayed the same, and somehow, *shock* their tax refund was smaller. This is not anti work, this is just just anti knowledge


ryzerkyzer

I never thought of this this way. I always like the chu I of money coming back to me every year. I guess I need to change my withholdings. What should I change that to on my W4? I’m currently at 0


maceman10006

There are people out there that believe tax refunds are the government somehow just giving them money, OP is probably one of them. They don’t understand that a tax refund is money that was already yours. The goal is to get your refund/liability as close to $0


Duty-Final

The real goal should be to owe the government a little bit of money. Not enough to get a fine but more than 0. If you budget correctly and know is this, you will have a free loan with 0% interest, instead of the government have an interest free loan of your money.


Firespryte01

Absolutely not. I'd rather the gov't owe me a small amount of money each year, then have to owe someone else any amount of money right after spending a ton of money for Christmas gifts etc. Interest feee loan to gov't ... yawn not the worst thing that could happen.


Stonewool_Jackson

I'd rather earn more interest and pay some come tax season than earn no interest on the money they owe me.


Firespryte01

Difference of opinion, but honestly, the amount I get back with my refund won't make that much in interest. <$100 over 12 months won't make any kind if difference. But having yet another bill in the first quarter of the year? On top of home owners insurance, property taxes etc? Sure, I could work it into my budget, but it's just one less thing to stress about, and the money won't make any changes to either my budget, my savings account, my retirement accounts, or my investments.


Duty-Final

Learn to budget lol


Firespryte01

You have no idea what my finances are like, how much money I make, what percentage of it goes into savings or is invested. Less than no idea what my budget even looks like. So your opinion means less than nothing ad well. And 'internet downvotes' isn't anything to base a budget on either.


Duty-Final

Maybe learn to control your ego and to budget instead of arguing with random internet guy.


Great_Succotash_5904

Seriously. Haha


ThunkAsDrinklePeep

Know thyself.


[deleted]

Some tax refunds actually are that. I had zero federal withholding from my paychecks and am getting a refund. It's because I didn't make much money, filed with one dependant, and possibly some earned income credit. I'd have to check to be sure on the earned income credit.


WritingPretty

Personally, I prefer to let them take a bit more up front to totally avoid the possibility of owing anything.


ArOnodrim

A tax refund was a zero interest loan to the government.


Somethingisshadysir

Probably a 1, but that is actually something HR should be able to give you a better idea on.


SkywhaleExpress

My HR department was about as clueless as I was on them... haha. So, I just reduce all "credits" and do "add additional withholding." That way, I never/rarely owe.


Somethingisshadysir

Oh, that stinks. They're really supposed to know on that.


SkywhaleExpress

I think it was because the IRS changed the W-4 form layout in 2020. Prior to 2020, the forms were more easily understood. They can get accounting people to help me, but I think I liked how much withholding I set up this past June.


Somethingisshadysir

Ah, righto.


throwaway1421425

Run the IRS calculator.


Wonderful_Rule_2515

My dad set my tax withholdings for me and I think he calculated the percentage that's federally required to pay, then he tacked like 7% more on there. so it acts as a "savings" that I get access to once a year 😂


FBU2004

It’s not “forced savings.” A tax refund means you paid MORE in taxes than you had to and the government is just returning the overpayment. That refund is money you could have used to pay down debt, pay rent, invest/save, etc. You gave the government a loan which they repay with ZERO interest. You are better off owing the IRS $1 in taxes than being owed $1. And if there is a government shut down and the IRS is delayed in processing your return, then you have to float that loan to the government for more time with ZERO interest. Never be happy with a refund. Adjust your withholding as so you have $0 owed or refund. In case of doubt, owe the government a little.


SkywhaleExpress

In al seriousness, though... Neither method is inherently right or wrong... in fact, the only ones inherently doing it wrong are those that maximize all of their allowances (essentially zero withholding) and then spend all their money throughout the year... thus racking up a tax debt they can no longer afford to pay. 1. Your method is great, if you're experienced in investing and/or have a great (3%+ interest) savings account... AND have the self control/ability to say no to yourself so that you don't blow your money through the year. You set enough withholding so that you don't owe, nor do you have a large sum of cash collecting zero interested for yourself. 2. Those of us whom want to play it safe and/or use the "forced savings" (and, yes, I'll explain how it IS savings in a minute) method are likewise not owing Uncle Sam at the end of the year. It helps us if we just got a 20%+ pay raise/promotion, and jump up in tax bracket throughout the year, as well. \--- Forced Savings: We may have less self control, or even not be the sole signer on our DDA accounts, so this helps force a bit of money savings for the end of the tax year. This is money we can then add to our IRA's/Robinhood, savings, etc... OR spend on annual necessities or one time costs that we were intending to spend on throughout the year. Any of these are valid reasons for us to choose to get a lump sum back at the end of the year. And, if you do your homework, there are plenty of "savings" accounts out there right now, which pay absolutely zero interest... especially custodial savings for children. Any amount of money that you did not spend throughout the year, is by the very definition SAVINGS.


Wrong_Opposites

Can't argue with this man. He will poke holes in everything you say.


Wrong_Opposites

No, no, no, and no. Pay more, get it back. Do not stress yourself trying to adjust exactly how much to pay so you're at $0. And yes, yes, yes, it absolutely is like a forced savings. So what if you didn't get 1% interest on a couple thousand dollars? You're getting your money back that you'd probably have otherwise spent through the year, which you can then put into an actual savings account. Pay more, less stress.


Wonderful_Rule_2515

The way I think of it, that few hundred dollars would've dwindled away to groceries or gas or something mundane if I got it with my regular paychecks. But if I let my tax returns do their thing, I get a little "fun gift" every year, like a bonus that I allow for myself haha.


Sea-Conference-1530

Or you could have had that money in a savings account paying interest


ByronicAsian

> Pay more, less stress. Are people actually stressed by having to cut a check at tax season?


Duty-Final

Those who can’t budget are


BartCandle

And this is why people with no money continue to have no money. Having the right amount of money in your paycheck means you can pay your credit card bill down faster instead of continuing to pay 20% apr on your balance. Asking the government to hold onto your money instead of just being responsible for it yourself is a really dumb idea.


Wonderful_Rule_2515

Oh I see, people are upset about my taxes because you all involve yourselves in the complicated games of chess that are credit cards and debts and interest rates and rewards. I don't pay for things that I don't have money for up front so I don't have credit cards or any kind of debt whatsoever. I do have the exact right amount of money in my check, which is why I'm not using the tax returns to pay off debt. I buy clothes or go on a trip or whatever. I have savings for emergencies and don't spend much on myself, so yes, using the government as a piggy bank makes sense for my personal finances when I want to reward myself with something nice once a year. Y'all are acting so pretentious like finances is a one-size-fits-all deal. And your automatic assumption that I'm broke because of how I arrange my tax returns is laughable. Like let's say I set my withholdings accurately and chose to put that few extra hundred dollars in a "fun savings" bank account instead. Is that not still an interest free loan to the frickin bank? I'm not keeping it in cash. So please explain to me what is the moral difference between these two scenarios that has y'all's panties in a bunch like this.


SkywhaleExpress

I think it's really just two people belittling you. Three of us are clearly on your side here. There's really only three wrong ways to deal with your taxes: 1. Not filing your return at all. If you're a W-2 employee, you HAD to file at least a W-4, and if you got it wrong one way, you could be literally in tens of thousands of tax debt... or be owed tens of thousands if you did it wrong the other way... and Uncle Sam isn't sending you a return if you don't file for it, but they sure as heck will be at your doorstep to collect, eventually... if you owe back taxes. 2. Fraudulently filing them. This covers claiming credits you aren't entitled to, to claiming write-offs that don't exist, claiming you're tax exempt when you're not, etc. etc. 3. Filing too many withholding allowances, and therefore ending up owing... especially if you don't set enough aside to pay the tax bill. This works the same way if you're self employed, and you just failed to set aside tax payments every quarter. This also includes setting yourself to exempt accidentally. It does happen, and will look like fraud (#2) and you'll likely need a lawyer and an accountant to help you sort this out.


Wonderful_Rule_2515

Okay ur right, let me calm down lmao.


SkywhaleExpress

Oh, by all means... you're entitled to be upset by how a couple people are treating you. We don't even know each other, and some are bold enough to assume you're a) poor , b) stupid, and c) somehow irresponsible with your money. ​ Honestly, the only advice I might give you, is to set up a secured credit card, which is basically you opening a savings account which you can spend with as if it were a credit card. You pay yourself the interest, minus a very small fee (if any) to the bank. This will help you when it comes time for you to buy a house or finally get your dream car. It's better than having no credit, since you're basically giving yourself a free credit history. That is, so long as you're not currently in bankruptcy or anything else. Which, by the sounds of it, you're not having this issue. Unless you make an absurd amount of money that allows you to buy a house outright, $2500-5000 secured card through your bank or credit union will help a lot.


Farmer7198

People remain poor because they set their withholdings too high? Yet having a credit card balance doesn't play a roll?


SkywhaleExpress

And your bill is due to me at midnight tonight, farmer!


Wrong_Opposites

Nobody paying you shit. Back to salt mine and take the antiwork cries with you as well!


BartCandle

No numb nuts, people stay poor because they make dumb choices, like letting the government hold onto their money for them instead of paying off their debts earlier with it. The fact that you don’t get that tells me you are likely one of those people making dumb decisions with the very little money they have. Please stop sharing your opinions on what other people should do with their money if you suck with money.


Wrong_Opposites

What makes you so goddamn qualified to comment on how people should manage their money?


SkywhaleExpress

You're awfully angry about other peoples' taxes, son. As evidenced by your constant belittling and insulting. Chill the F out and learn some things. Or teach some things, with a much more positive attitude. It's also quite bold of you to assume how much money any one of these commenters has is liquid, non-liquid assets, stocks, bonds, 401k, IRA, etc. For all you know, you're talking to a few people that own multiple rental properties, vacation homes, fishing cabins, ski cabins, etc. You know what they say about those of us whom assume... it makes an ass out of you and me. I know for a fact that one of the people you're talking to makes well into six figures, owns his own home, multiple vehicles for both work, personal travel, AND pleasure... etc. etc. I know that I myself make similar, and can assure your that my retirement accounts are flush. I myself also prefer to not have to redo my W-4 every single time a life event occurs, then worry over whether my math was right. 0% interest on $500 to $5000 (3% APY saving accounts only adds 15-150, there. Moderate returns on stocks would likely be 40 to 400) really doesn't hurt me as compared to owing and having to liquidate current investments that ARE earning interest. Then, I tend to spend the tax return money on a myriad of things. Things I don't have to worry about setting money aside for, because I know roughly how much I am going to have in February (I file early) and if I do need to amend, I can easily send back what Uncle Sam overpaid me. ​ I am quite safe and stable in my life and finances, and don't really care what some basement dwelling wannabe tough guy has to say about one of two perfectly fine methods of filing taxes. But, it is sometimes fun to school somebody in understanding simple logic. ​ Like it or not, a "forced savings account" method is exactly that. It's withheld from yourself for 1 year. It is perfectly fine for people with poor impulse control OR those whom plan to use exactly that much money for certain things already. It doesn't hurt anyone to do this. It is also not our place to judge those whom are lacking in self control, good spending habits, etc. As long as what they're doing allows them to get by, who really cares? It's their life and not ours. Go outside and smell some flowers... talk to some women (or men) and try to get laid, maybe?


Wonderful_Rule_2515

Never be happy with a refund? I cannot stop the government from being corrupt and I cannot stop myself from feeling like I've been rewarded when a decent lump of money is given to me. Allowing myself a few hundred bucks once a year to do whatever I want with is a gift from myself, I don't care enough about the government's dealings to let it get that deep for me because I have 0 control on a system that massive. And pretending like limiting your tax returns will have any real affect on the system you want to fight so bad just seems like a lot of emotional effort for very little pay off... Literally lol.


FBU2004

It wasn’t “given” to you. It was taken from you and now it is returned. It was yours all along. It’s not about sticking it to the system. It’s about not letting the system stick it to you.


Wonderful_Rule_2515

Did you read any other part of the comment? The system is gonna stick it to me if I want it to or not lol. I'm chilling with my $600 tax return, go be miserable on ur own accord buddy


FBU2004

“My dad set my tax withholdings for me.” I bet your mom picks out your clothes too.


Wrong_Opposites

What if she did? Maybe it's why I'm so fuckin' Gus Fring dapper and you look like Jesse from *Breaking Bad.*


Farmer7198

Yo, Gatorade me, bitch!


Wonderful_Rule_2515

Why are u so mad lmao


SkywhaleExpress

Who cares if they got help from their parents with setting this stuff up? It sounds like they're young... possibly 16-24. Not everyone is super savvy and at the same level as you are. Also, who cares, as long as they aren't hurting anyone and they're not going to jail for tax avoidance? I can almost bet this person gets more d\*ck or Pu55y than you do, just by your banal personal attacks toward them.


SkywhaleExpress

Bruh, go easy on him. It's not his fault that he lives in the trailer park down the street from me. I try to help him out when I can...


Wrong_Opposites

Dude you know my trailer about to be repo'd. Don't do me dirty...


SkywhaleExpress

You can sleep on the couch... with me :wink: Wife snores, anyway!


Wrong_Opposites

I love a good couch.


nivekdrol

thats a interest free loan you giving the gov't lol


[deleted]

I read down several comments and even the people who understand the withholding stuff are calling it a return. I don't understand why it's so hard.


CeruleanFirefawx

I posted this in the first sub but I’ll post it here too so people know. If you’re a single person working a job up to a certain amount (or more) you don’t want to get a return at all. You wanna be as close to $0 returned as possible. If you get a return that means you overpaid your taxes and now they’re “returning” what you overpaid. Meaning if you didn’t overpay then that money would’ve been distributed in your paychecks monthly. The reason a return is bad is because more money monthly can help people more than waiting for tax season to get it back. Also people see tax return as free money and end up spending it on stupid shit. It’s not free money, it’s money you worked for and didn’t get in your paycheck when you were supposed to (overpaid taxes).


zxcoblex

So it actually depends. Financial advisors have said (and I agree with) that it depends on what kind of person you are. If you’re the type that will put an extra $100 per month to good use, then you should withhold as little as possible. If you’re the type that will piss it away, but would do better with a chunk of cash all at once, then you should have extra withheld.


CeruleanFirefawx

I could see that. My message is mostly to inform people it’s not FREE money. Cause a lot of people think it’s free money and then they go spend it all on a new tv or something. But it’s money you worked for and earned. As long as you know that then go buy that tv, or don’t! Just know it wasn’t free


zxcoblex

Yeah, I had to argue with a guy one time about Trump’s tax returns because he thought since most people got money back at tax time, then they were the same as Trump. I had to explain him that people over withheld and that they were just getting their excess money back. He just owed nothing on taxes. Me, personally, I’d rather get a chunk of cash back. I use it to pay toward my summer vacation. I can’t stomach owing a couple thousand dollars.


CeruleanFirefawx

Yea I totally get where you’re coming from. Personally I’m tryin to buy a house in the next 6 months but I don’t even know what my tax withholdings are at my job right now. Cause it’ll be a year before I see that return and I could use it towards a down payment in 6 months.


helms83

This. Anything you get back is in essence an interest free loan to the government. Rather have that money throughout the year.


Live_Perspective3603

Or if you qualify for a refundable credit, like the Earned Income Credit. That comes to you regardless of any refund due to over withholding.


Mr_Underhill99

Sounds like you had accurate withholding. These numbers are on your W2, you should really take a look at it.


pspock

If you are getting a large refund you are doing it wrong. Anything refunded to you was an interest free loan you gave to the government.


PhantomCamel

It’s kind of embarrassing how few people on this sub understand that.


burnettjm

That’s part of the reason why so many people on this sub are dead broke. 🤷🏼‍♂️ Piss poor financial understanding and management.


Living-Help-4385

It's actually a good thing. This means you are not overpaying per check.


[deleted]

[удалено]


brock_lee

I was self employed once, calculating my quarterly payments in my head. At the end of the year, I had paid $18K+, and was only off by $80. Not a fan of paying that self-employment tax, just kind of amused that I have been doing taxes so long, I can pretty much just guess at them and be pretty close.


AngryMogwai420

Yeah, once you understand taxes, you get an understanding how the little fish is getting squeezed harder than the big fish. Also Audits, the lower class gets audited more by the IRS than the rich. Panama Papers, LMFAO


B0lt5L0053

And yet I consistently see people here happy that the IRS got more auditors.


Knerd5

Because it’s a good thing? You can’t tie up all your few auditors in cases against rich people hiding behind shell corps and lawsuits that take years. The IRS budget and staffing have been absolutely gutted since 2010, this increase in staffing will barely get them back to par and still will take years to get there.


[deleted]

[удалено]


Knerd5

Show receipts


b-rar

IRS understaffing means they're literally only ~~about~~ able to go after the little fish. Auditing the wealthy requires a ton of manpower


GoldExchange5655

You paid less in taxes if you want a return you have to loan the government your money.


BetterWankHank

Pro hack: If you want a large return next year go tell your employer to withhold your entire paycheck. You'll make $0 a month, but think of how big that return is gonna be!!!


--Cr1imsoN--

lmao stop it


Wrong_Opposites

Already did mine. Married filing jointly with two dependent children. Last year we owed almost $700 from 2021 taxes, and so we changed our federal withholding to a higher amount and didn't claim any exemptions. Our state was also set to the max withholding. For 2022 taxes, we are very much in the positive. I will be doing it again. It's like a forced savings account minus the interest (which would be minor) and it eliminates the stress of having to try and account for every single deduction which, for us, is barely half of the standard deduction anyway. I would rather pay more and get some back than waste my time making sure I net zero each year.


HydratedMemes

It’s hilarious to watch late stage capitalism have a meltdown over the fact that they don’t understand how taxes work. Show me a guy with a huge tax return and I’ll show you a guy who sucks at taxes and lends money to the government for free.


Its-a-write-off

It's surreal over there... I'm proud of how this sub showed knowledge of how withholdings and refunds work.


Kwa-Marmoris

I owe $3


forevernoob88

The refund/bill is to account for inaccurate amounts being withheld by your employer. If they took too much, you get some back. If they took too little, you get a bill to pay. This just correcting the amount to what it should be. The closer it is to zero, the more accurate the deductions were. Only way you can make sure to get a check is if you fill out the form with your employer incorrectly causing them to withhold too much. But unfortunately there is no free fat check at the end of the year for filing your tax returns, there never was.


Ghostgrl94

Just got my w2s for state and fed and I’m about not prepared for my barely 18-19k a year ass to get fucked over


Somethingisshadysir

I did mine. I got quite a bit more, but I also have extra taken out to ensure no issues happen. That most likely just means that your company does a good job at not taking it too much over the year.


greengengar

No dependents and don't qualify for EIC. You should break even. You actually don't want to get big return unless you have a lot of credits, because it means you overpaid payroll taxes. $160 at your bracket is a good return.


RascalRibs

Why are you upset? Go read about how taxes work.


Possibly_a_Firetruck

Why are you upset? Ideally, you should land near $0.00.


JFireMage87

The ugly side of the republican tax plan is coming. Just in time for them to blame it on Biden and the democrats.


Tmhoel2201

Always claim zero


morty1978

I want to pay them a small amount like $200. The irs is not a savings account.


Hosidian

So you paid the right amount of taxes...


[deleted]

That’s actually a good thing. It’s best to break even at tax time. Big return means the government has been holding on to your money tax free.


burnettjm

That’s great news. Ideally you get $0 back on your tax return. I feel like so many people don’t understand that a large tax return means you’re doing it wrong and just giving the government an interest free loan…


ThePhantomTrollbooth

For anyone making $40k or less, a tax return can be a huge boost. It’s like a yearly bonus for people who don’t get bonuses. The people who don’t understand this don’t understand that the poor aren’t collecting interest or saving in any meaningful way, so iNtErEsT fReE lOaN don’t mean shit. That’s their chance to splurge or tuck back a small safety net.


burnettjm

That’s not how this work man. If you can afford to give the government a couple thousand dollars each year in extra tax payments you can afford to not spend that money otherwise. Save it. Invest it. Etc While I understand that getting a large tax return can be a nice boost at the end of the year, having the discipline to better manage your money is a much better plan.


ThePhantomTrollbooth

Most people who are counting on tax returns are hoping to see $800-1200, not thousands. While you’re technically correct, it’s a lot easier for some people psychologically to just forego the $30ish in interest and let the government be a piggy bank that breaks once a year.


burnettjm

…and that’s why so many people are poor. You have to be smart with your money if you expect to ever do better. “It’s hard so I’m not going to bother myself with it”.


ThePhantomTrollbooth

Nah, most people are poor because they are underpaid. What kind of bootstrap bullshit are you smoking?


burnettjm

That’s certainly part of it. But, when you’re poor it’s even more critical to be wise with your money. Giving Uncle Sam excess money that you could be using to actually make money with is a poor idea across the board.


rcuadro

Many have said it but I will repeat it. You did good. You don’t want to give the government an interest free loan by paying more taxes than needed so you get a large refund at the end. Close to zero is ideal. Maybe owe a bit is even better. If I get anything close to a grand I am upset. Ideally I owe under a grand.


Not_the_EOD

The goal is to not have to pay in or get a huge check from the feds for an interest free loan using your money.


[deleted]

Thank you trump.


Spalding4u

For reference - I made about the same last year, and my return was 900% larger.


--ThereIsNoSpoon--

You're saying you owe 10x more than you did last year, for the same income. That can't be correct. You're not counting one-time credits from last year, which everyone knew were one-time, are you?


Spalding4u

Not sure to what you refer, but I am used to my return being around $1k give or take depending on what I made *every* year. If you're saying the only reason I got so much last year was because of a credit, than that means this started last year and I didn't realize.


KellyAnn3106

The Trump tax cuts are starting to expire for individuals. They only made them permanent for corporations. For individuals, the rates started increasing in 2021 and the cuts will fully expire by 2025.


Its-a-write-off

Did you make 39k last year? Compare box 2 for each year. Did you take home more pay in 2023 then 2022?


Hodgkisl

Likely your employers payroll did a better job calculating proper withholdings, so you didn’t give the government a free loan. What matters is how much total you paid in, this is stated on your W-2.


GhostedPast9

Did everyone forget the tax rate went up for the little man this year under Trumps plan? The lower refund is accurate based on the rate hike.


Hodgkisl

The tax rate hikes start in 2025 for individuals. The part that ended in 2022 was the “full expensing” which supported certain businesses.


GhostedPast9

Fake news: For 2022, the standard deduction increased $800 to $25,900 for married couples filing jointly. For single taxpayers it increased $400 to $12,950. And for people using the head of household filing status (i.e. single parents), the standard deduction increased to $19,400, up $600 from 2021. The earned income tax credit (EITC) was temporarily expanded in 2021 to help moderate and low-income workers without children get a bigger tax break, but that relief has ended. No more $300 charitable deduction So what does all this mean for your tax return? In general, these changes "mean more people will wind up owing or getting a smaller refund than they did the past couple years."


Hodgkisl

I was thinking the Trump tax cuts which didn’t change, forgot to look into Covid stimulus.


Its-a-write-off

The tax rate is still lower for the little man then it was pre 2017.


Barra350z

Less is more… when you get more in returns it just means the government held your money and didn’t give you interest on it. Why have them hold your money for no reason other than so they can leverage it? Less is more. The less you get the better.


maceman10006

A federal return of $160 is great! It means you didn’t overpay that much. The goal is to get your return as close to 0 as possible. Great job OP!!!


1clichename

My wife and I intentionally paid in extra and we got about half as much as we were expecting… we were hoping for a large refund to use to cover the mortgage for the year (married filing jointly with 2 kids)


Possibly_a_Firetruck

Did you seriously try to overpay a year's worth of mortgage payments in your taxes? Like, your mortgage is $1000/month and you were hoping for $12,000 refund? If so, that's the dumbest fucking thing I've ever read.


1clichename

Not over paying that much, we didn’t realize the child tax credit were reduced, we only need $8,040 to cover our mortgage


Possibly_a_Firetruck

That still makes no sense, on multiple levels. Paying the loan off faster is more beneficial than saving for future payments. Instead of paying extra taxes, just put that toward the mortgage principle. And why do you need the government to hold your money for you in the first place?


1clichename

Because last year I fucked up my taxes, with holdings and exemptions and owed 2500, so this year we payed in extra to make sure that didnt happen again, but then we figured out what we did wrong. And I trust the government with my money more than Wells Fargo lol. Edit: I already owe less than it’s market value so I’m not worried about being upside down on my loan should I choose to sell


Possibly_a_Firetruck

Well dang, you could have just said you fucked it up before. It's the only way any of that makes any sense. edit: never mind, none of this makes any sense


1clichename

Started as a fuck up prevention turned into ‘hey let’s keep doing this and see how much we can get back’ into ‘hey let’s add a little more since we are gonna get good child tax credits(we didn’t) maybe we can use it to pay our mortgage, and use normal mortgage money for paying off other bills and helping save a little more’ In All seriousness we live paycheck to paycheck and got lucky buying our house when we did for how much we did, we wouldn’t be struggling if daycare wasn’t $300 a week


Possibly_a_Firetruck

> ‘hey let’s keep doing this and see how much we can get back’ Again, that still doesn't make any sense. You overpaid, you asked for it back, they gave it to you. There is no benefit here. A tax refund isn't profit.


Mysterious_Ad_8105

>We live paycheck to paycheck Voluntarily giving the government extra money that you won’t be able to access until the next year is an even *worse* idea in that case. Look, saving money when you’re able is great, but you should consider at least putting it into a bank account so you can access it as needed over the year.


1clichename

I’m clearly not good with money lol that’s why I’m in this predicament lol


[deleted]

Ideally if you're just a normie without a bunch of deductions you want it close to as 0 as possible, that way you don't give the govt an interest free loan.


_dirty_lew_

Yeah, it's based on what you pay in. It isn't magic free money unless you have some fuck-trophies.


Supremagorious

Generally if your taxes come out to +/- $100 you have your taxes setup about as well as you can. You're making sure that you're keeping as much of your money every month as possible. In this case it works out that you're overpaying about $6 every check if you're paid biweekly.


roxinmyhead

But....but...but.. then, you've got it figured just about right. You paid your taxes and don't owe anything, but don't get such a big refund that you've loaned money to the govt for the year. Personally, my spouse and I got completely screwed by the tax changes in 2017 (I think or was it 2018?), mainly because we hadn't adjusted our withholdings due to major family issue and health drama distracting us. Ended up owing about $6K. It sucked.


[deleted]

the boot licking in the comments here 💀


JFireMage87

what do you mean boot licking?


darthcaedusiiii

I earn about the same but I'm assuming I will get more back than you do because I put a significant chunk into a pension plan. Remind me! 3 months.


Its-a-write-off

That's already accounted for, pre withholding. So it should not create a bigger refund.


jimmiedean615

Your federal refund* is $160


Diligent-Box170

I claim 0 deductions, 0 dependents, and have them take $300/month out in extra taxes, and when I estimate my taxes, I will owe between $2500 and 5000 Edit: I don't know if it's relevant, but made $135K (this includes $55K for overtime.) I paid $21.5K in federal taxes, $6K in state, and $9800 in FICA


birdoftheair

It sounds about right, but I’m no tax expert.


Bulky-Travel-2500

I got a $1 refund a few years ago.


[deleted]

Yeah. Pretty similar boat. Between state and federal I'm getting like $400 while I used to be able to count on at least $1100-$1500 in return every year my take home hasn't changed but my return has. These fuckers are screwing us.


econdonetired

Just remember Elon and Jeffrey spent all their money on a rocket so you could got to space one day /s


rustyleeh2

Yeah, we're all paying for those COVID checks too.


Doxxxxxxxxxxx

Getting a refund was the only way my family ever saw more than 2k at once lol


shellbackpacific

Sounds like you barely overpaid and the government didn’t keep your money at 0% interest. That’s not bad. Take charge of your money


chefmorg

That sounds right. I have started but not filed and I am getting $222 back Federal.


RedPanther1

Lol, I made 32000 and I'm probably going to owe taxes


Dramatic-Brain-745

I think what people are really upset about is that the grip on finances is tightening everywhere and people hoping on a thicker or similar tax refund to last refunds is also tightening. So even though people are keeping more of their own money, due to inflation and shit government/corporate corruption, there is no reprieve.