Tis the Season - Tax Time

iVillage Member
Registered: 10-28-2009
Tis the Season - Tax Time
27
Thu, 01-19-2012 - 10:08pm

One of the certainties in life - taxes.

So, have you filed yet? If so, are you expecting a refund? what do you have planned for the money? Some people can wipe out all their debt with a tax refund!

Do you owe the government? If so, did you expect this? And did you set aside money for it? Or is this an emergency for you?

personally, last year, I adjusted my taxes so I would get more money on a weekly basis and no refund. I thought I had it figured just right. Well, I didn't, but fortunately, I don't owe. I am getting a refund of $1600. I will post again when I have some real plans for it.

Let us know what Uncle Sam has in store for you!

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iVillage Member
Registered: 10-09-1999
Mon, 01-30-2012 - 11:47am

Filed our taxes this weekend.

iVillage Member
Registered: 01-08-2012
Sun, 01-29-2012 - 9:35pm

i'm so excited i'm getting ten dollars back. i'm so overjoyed i do not owe anything i could cry. i was hiding under the covers with fear at having to pay. best ten dollars of the whole year!

Avatar for poorboy2011
iVillage Member
Registered: 10-02-2011
Sun, 01-29-2012 - 11:48am
poorboy2011 wrote:

I'm expecting the tax refund to make up for some of the income lost due to illness. I don't get paid in the summer months, so I need to save up some money to get through, and because I had to take a medical leave, I won't have enough without the tax refund.

I just filled out my tax form, and the news is bad. It looks like I won't be getting very much back this year, certainly not enough to make up for the income lost due to illness. This means I'm going to have to save more money per paycheck until the summer. That will leave me very little money for debt repayment.

I will have an extra assignment in the summer, and that additional income will make up for the lost income and more. However, nobody will know for sure whether this assignment will happen until the week before the start. So it's not something I can count on.

Life is a box of chocolates, but why did I pick a funny one for this year?

iVillage Member
Registered: 05-08-2006
Sat, 01-28-2012 - 11:43am
There can beva marriage penalty, or their can be a marriage bonus. Earned income is taxed at different levels. A certain amount of income is tax free. In fact, people who make less than a certain level receive earned income credits to make up for their low wage job, and in fact can get back more in refunds than they pay in taxes. There is then an amount of income taxed at a lower rate. Income above that amount is taxedvat a higher rate, and then income above that is taxed at a higher rate still. So if someone who is getting an earned income credit marries someone earning a very high amount, they will lose their earned income credit, and some of the combined earnings are at the highest rate. That is the extreme. Orvtwo people paying at the lower rates, once their income is joined, some will be at the higher rate. However, for the person paying the higher rate, if they marry someone paying a lower rate, some of their income will get taxed at the lower rate, so there is a marriage bonus. It is different for every couple. Childless, single people making high incomes who are healthy pay the most taxes and receive the least services. Lower income people, especially if they are in poor health and have large families, pay the least but receive the most services. But our covenant with each other is that those who can and have help those who cannot and have not. We all benefit from an educated, literate population. We all need safe roads and bridges. We need police and fire personnel who are well trained and fairly compensated. To keep the most people healthy, we need to care for the sick who cannot afford care to prevent epidemics. We need to preserve our natural resources, both to keep our water and air clean but also to provide places of beauty and wonder to inspire and refresh us. We need a strong military to protect us internationally and to provide a capable workforce when disasters both man made and natural strike. Sadly, we need prisons to protect us from each other, a judicial system to provide some element of fairness. We need street lights and stop lights. How we divide up paying for these items does not always seem fair. But fair depends on where you are standing, and I think it is important to remember that even though we all hate seeing how many of our dollars are spent on taxes, that we receive benefits for them. SJ
iVillage Member
Registered: 07-27-2009
Fri, 01-27-2012 - 5:09pm

Lol, little Liam was a bit of a surprise :) We were just beginning discussions on when we might start trying for another one...

JenAaron.jpg picture by jen2075


Community Leader
Registered: 08-25-2006
Fri, 01-27-2012 - 12:28pm
Yea Aingeal, run it both ways on Federal and State.

Too many variables, unless someone is a tax expert, to say which is best. Kids, no kids. Can you itemize, or not. W-2's or self-employed. My mortgage interest used to be too low to itemize on Federal, but high enough to itemize on State. Does one spouse owe back taxes or back child support.

The list goes on.....

Serenity
iVillage Member
Registered: 07-15-2003
Fri, 01-27-2012 - 11:09am

Thanks for the tip :) I'll look into that.


 


Daisypath Anniversary Years Ticker

iVillage Member
Registered: 03-15-2005
Fri, 01-27-2012 - 10:40am
Make sure that you run numbers for both federal AND state for both Married filing Joint and Married filing separate (if your state has state taxes). When I was still working and doing taxes, many people would be close to the same either way on federal, but would get more back from the state doing MFS.

Jennifer


 


iVillage Member
Registered: 07-15-2003
Fri, 01-27-2012 - 10:24am

Marriage penalty? Really? Why have I always believed marriage came with tax benefits? :(

I used the turbo tax calculator to do a preview of what I might get back or owe. A whopping $30 refund. Wowee. Ah well. The most important thing is that we're responsible and file on time. No flake for paying off debt though, that's a bummer.


 


Daisypath Anniversary Years Ticker

Community Leader
Registered: 08-25-2006
Thu, 01-26-2012 - 2:35pm
Hey Jen, I didn't know you were expecting!

I am with you on this one. EIC, child credit and my last year of daycare credit. IRS also stopped doing the advanced EIC, so although I never did that, there really is no other way for those of us fortunate enough to qualify for these credits.

I hate to say it, but when I was married and we both worked full time, even with two kids and daycare costs we still were lucky to break even. Married with two W-2's really eats you up. You might have a chance though if one of you is self-employed.

I may rough out the numbers one day, just out of curiousity, what would happen tax wise if me and SO got married.

Oh and Jen, I also hate it when my boss waits until the last minute. Luckily the last few years he has done them really early.

Good to "see" you...
Serenity

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