taxes wtf?
#11
the reason she got back $6k is she is
1. single
2. does not make much money
3. a mother
4. child tax credits
ect.ect.ect.
#12
#14
for 2008, you get $1000 tax credit/child, this essentially reduces your "owed taxes" by 1G. Then, you can claim $3500 per child exepmtion. If you have one or more qualifying children and made more than $8,500 in 2008, you can get a refund of up to 15 percent of your taxable earned income that exceeds $8,500.
To explain how to file your W4, (and it's dependants, not independants) filing Single, 0-dependants, the Govt. feels you don't "need" to take home as much pay and withholds a higher percentage for taxes. If you claim Married and/or X-dependants, they feel you need more take home pay to pay for the wife's bling and diapers and formula and such for the rugrats. So they withhold a smaller percentage for taxes, thus at the end of the year; you you get back some of this from rugrat exemptions and tax credits. So if you want to claim Single, 0-dependants, you'll probably be alright at the end of the year because they'll have withheld more , but you'll have taken home less money. Now here's the rub. If you let the govt keep this withholding money, they use it and earn interest on it all year. Optimally, you want to owe 0, if single 0-dependants. Or, as most people look at it as a "bonus" at the end of the year, which it really isn't; it's your money they are giving back to you after using for a year. Does that make sense?
#15
If you want to get some ideas on deductions you can take, pick yourself up a copy of Turbo Tax. You can get the deluxe federal and state version for about $50. It asks you about a million questions but it will trigger you to think about a lot of deductions you usually wouldn't consider.
This whole "insurance" for being audited makes no sense. You can deduct everything that is allowed as long as you have receipts or credit card bills or whatever documentation needed to back it up. As an accountant, I suggest you take every darn deduction you can come up with! Why pay taxes on even $1 that you don't have to!
As far as your sister, she gets a $3000 deduction for herself and for each child and I'm sure as a single mom she also got the child tax credit. Those are the most likely reason for her to get such a large refund.
If you have any questions at all just let me know... I'm more than willing to help!
This whole "insurance" for being audited makes no sense. You can deduct everything that is allowed as long as you have receipts or credit card bills or whatever documentation needed to back it up. As an accountant, I suggest you take every darn deduction you can come up with! Why pay taxes on even $1 that you don't have to!
As far as your sister, she gets a $3000 deduction for herself and for each child and I'm sure as a single mom she also got the child tax credit. Those are the most likely reason for her to get such a large refund.
If you have any questions at all just let me know... I'm more than willing to help!
#16
i understand that....
so where's the interest come from
---AutoMerged DoublePost---
cool thanks i might need help.... i have turbo tax some where...i bought a year or so ago i never used.
she's not my sister LOL
so where's the interest come from
---AutoMerged DoublePost---
If you want to get some ideas on deductions you can take, pick yourself up a copy of Turbo Tax. You can get the deluxe federal and state version for about $50. It asks you about a million questions but it will trigger you to think about a lot of deductions you usually wouldn't consider.
This whole "insurance" for being audited makes no sense. You can deduct everything that is allowed as long as you have receipts or credit card bills or whatever documentation needed to back it up. As an accountant, I suggest you take every darn deduction you can come up with! Why pay taxes on even $1 that you don't have to!
As far as your sister, she gets a $3000 deduction for herself and for each child and I'm sure as a single mom she also got the child tax credit. Those are the most likely reason for her to get such a large refund.
If you have any questions at all just let me know... I'm more than willing to help!
This whole "insurance" for being audited makes no sense. You can deduct everything that is allowed as long as you have receipts or credit card bills or whatever documentation needed to back it up. As an accountant, I suggest you take every darn deduction you can come up with! Why pay taxes on even $1 that you don't have to!
As far as your sister, she gets a $3000 deduction for herself and for each child and I'm sure as a single mom she also got the child tax credit. Those are the most likely reason for her to get such a large refund.
If you have any questions at all just let me know... I'm more than willing to help!
cool thanks i might need help.... i have turbo tax some where...i bought a year or so ago i never used.
she's not my sister LOL
Last edited by bow2no1; 02-07-2009 at 09:40 PM. Reason: Automerged Doublepost
#17
#18
Hey bow2no1 - not sure if I can - I got a new copy and taxes are filed - if I can I will send it to ya - I paid for 5 free efiles already - the wife is asleep or I would ask her - I will find out in the morning and let you know if your interested - not to savvy on the stuff so iI "have" to ask her
#20