Are you and yours expecting a tax refund this April?

Avatar for xxxs
Community Leader
Registered: 01-25-2010
Are you and yours expecting a tax refund this April?
3
Mon, 12-17-2012 - 7:19pm

  If like most American you have paid payroll tax all year.  Now tax season will be upon us.  Are you expecting a refund or will you have to pay in?  What are you feelings emotionally and about your personal budgets?  If you obtain a refund or do not owe taxes then that puts you in the 47% none tax payer category.

     Is that a fair assessment?  After all the treasury invested all those payroll taxes into interest bearing accounts. Did not the treasury gain an advantage?  And do you not deserve a refund for the overpayment? 

    What are your thoughts and feelings?   Are those that plan to obtain a legal refund to be pejoratively categorized?  As part of the 47% who either owe nothing or receive refunds? 

dragowoman

iVillage Member
Registered: 10-17-2012

The first lines of your cite explain that the 47% are those who do not pay income taxes and then goes on to explain the vaguries of the tax system.  This supports what I've said.

Avatar for xxxs
Community Leader
Registered: 01-25-2010
Fri, 12-28-2012 - 1:02am

  Sorry that is a misunderstanding of what the 47% represents. " doesn't include those who pay the proper amount of taxes and don't get a refund, or those who overpay their taxes and do get a refund."   Because the way the question was worded it became easy not to ask the questions.  To me it was as you point out a person who owes no taxes nor obtains a refund is lumped with those who overpaid.  That lead to even more misunderstanding. 

I talked about this with a IRS person 4years ago when it was 45%  Once the analysis had been done it was apparent that it could be misunderstood.

The facts according to these sources:

http://www.taxpolicycenter.org/publications/url.cfm?ID=901527

http://www.forbes.com/sites/rickungar/2012/09/19/the-real-truth-behind-the-47-percent-why-arent-these-people-paying-federal-income-taxes/2/

http://www.tnr.com/blog/plank/108817/anatomy-the-47-percent#

dragowoman

iVillage Member
Registered: 10-17-2012
Wed, 12-19-2012 - 11:36pm

First, the "47%" refers to the percentage of Americans who don't pay income taxes, and doesn't include those who pay the proper amount of taxes and don't get a refund, or those who overpay their taxes and do get a refund.  If you pay income tax, you're part of the 53%.

As far as payroll taxes are concerned, generally speaking, there is no "overpayment." You are assessed a certain amount based on your income...and most Americans tend to use more via social security, medicare and/or unemployment insurance, than they pay.

the real problem is if you're expecting a refund next year and the fiscal problems of both the state and Federal governments prevent them from paying you.