What should I expect on my tax return?

[Ran]

I'm terrible with filing my taxes but I think I shoud have a return this year from my job. Can someone give me a general idea of what I should be expecting? I figured that somebody here would be good with this. Any help is appreciated. :cheers:

Gross Pay YTD
Regular - 21,920.27
Overtime - 156.95
Vacation - 200.00
Holiday - 284.00

Withheld YTD
Federal - 2809.65
Social Sec. - 1477.52
Medicare - 345.57
State - 1101.84

[tony]

Any itemized deductions? (Business expenses, House, Student Loan Interest, Kids, Dependents) I dont know if anyone will be able to give you a true estimate but quicken.com has a tax estimator, I believe MSN Money does too. Just search google for tax estimator

[Ran]

Will do. Thanks.

[con]

I've used the following two programs for the past 5 years to prepare my own taxes. You can basically prepare your entire return and only pay if you decide to process the file. I've paid to have my taxes done a few times and used these as a reference which was only a few cents difference (I don't use the underhand accountants that get you double returns, I play the Fed. Gov. strictly by the book). Therefore I've done my own ever since. Process everything electronically and have your money within a few days.

turbotax.com

&

taxexact.com

[Ran]

Looks like I still don't have all the info I need. Gonna have to wait for my W2's.

[2.0civic]

i was going to say damn, how do you afford to live off 20k?

[SniperJoe]

Nate, try this on for size:

http://www.irs.gov/individuals/article/0,,id=96196,00.html

I would just figure for the standard deduction if I were you. That should be a good guide.

[Tracy]

did you file 1 or 0

[dELfONiK]

You will be getting back $1068.00 in Federal. I didn't do state, but you will be getting money back from them too. This is assuming that you will be filing single and nobody can claim you as a dependent.

You paid too much in taxes throughout the year.

[R_Rated]

did you file 1 or 0

I filled 12! woot! still getting monies back though unfortunately.

Getting money back is BAD, you should get/owe <100bucks if you do it right. Why not pay less tax throughout the year and invest the diffence and get the interest for yourself! Then if just like getting a check, withdraw the money WITH INTEREST.

[dELfONiK]

I filled 12! woot! still getting monies back though unfortunately.

Getting money back is BAD, you should get/owe <100bucks if you do it right. Why not pay less tax throughout the year and invest the diffence and get the interest for yourself! Then if just like getting a check, withdraw the money WITH INTEREST.

Yeah, I think it's better to get back/owe a little. If you get back a lot, that means the IRS is making money with the extra you give them throughout the year, when in reality, you could do the same.

I owe about $1200 for Federal :(

[VegetaRules]

Okay, my manager said sorta the same thing. I'd like a mini breakdown so I can understand what you are saying. Cause one guy said he did it, go 4100, the next guy said he owes $1200:no: .

So is one of you doing it wrong? Now I got back $5071 +$406 state( claim kids ;) ). Now I normally go at least 6 months without having Federal tax being taken out. It's only $110 per check( Salary get paid on 15th & 30th).

So what is the strategy ya'll are talking about?....Vegeta

[dELfONiK]

Okay, my manager said sorta the same thing. I'd like a mini breakdown so I can understand what you are saying. Cause one guy said he did it, go 4100, the next guy said he owes $1200:no: .

So is one of you doing it wrong? Now I got back $5071 +$406 state( claim kids ;) ). Now I normally go at least 6 months without having Federal tax being taken out. It's only $110 per check( Salary get paid on 15th & 30th).

So what is the strategy ya'll are talking about?....Vegeta

I'm no tax expert, but here's the way I see it...

If you get back a tax refund, it is because the IRS took out too much money during the year. You don't have access to that extra money until the following year, when they give it back to you in the form of a refund. The thing is, while it may seem like the money is just sitting there, they are actually using it and making money from it. It's pretty much like you giving the IRS an interest free loan.

Instead of them taking too much out, you can elect for them to not take out as much, which will in turn increase your paychecks. You can then invest that extra money, like maybe purchasing stocks, or putting some in your 401k, or even putting it in your savings account. Then you can make money instead of them.

The money you get back in a refund is your money. You can choose to let them hold it during the year, let them make money, and then give it back to you, or you can choose to receive a little more each paycheck and then do with it as you wish.

I'm the guy who had to pay $1200. I will change it to where I don't owe as much. But, it's not like I'm paying them any more than if they would have taken more taxes out.

Again, I'm no tax expert. This is just my opinion. Also, it's just my wife and I. I don't know how different it is when you have more dependents.

[VegetaRules]

Yeah, see my manager said she didn't like to have the government be her savings account.lol Now I don't have-have kids.lol It's just a 12 year friend I assist because everyone where she lives get's paid under the table.

So thats partly why I do it this way as well. I just kinda like starting the new year off with a lump sum. It allows you to do some things, because do you really save that extra $200 or so? I'm not debating, I went over this idea heavily.

I just decided to take $500 & drop it in interest bearing account, & do what I normally do. I just wanted to get another alternative....Vegeta

[tony]

State took out about $5k from my paycheck so you can only imagine what Federal would have taken but I've filed exempt since September and I'll probably still get money back.

[Sonny BonaHo]

You will be getting back $1068.00 in Federal. I didn't do state, but you will be getting money back from them too. This is assuming that you will be filing single and nobody can claim you as a dependent.

You paid too much in taxes throughout the year.
i was gonna say you would get back roughly 1000.00. remember paying too much is always better than not paying enough. you can have your employer adjust it out if you prefer less deduction from your payroll. i make mine where i break even. dont get anything back but dont owe either:goodjob: .