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100

One can overpay their state and federal taxes by tens or hundreds of thousands of dollars. Tax time is when it gets reconciled, a payment due or a refund. No cap either way, your $3000 is just coincidence that it’s a round number.


98

You don't "need" your refund to be as small as possible, but you usually would want it to be as small as possible. The reason people say you should aim for a small refund is that getting a big refund means you paid more in taxes than you had to. This means you gave away money that you could have done something else with. You get the money back later as a ...


37

During the partial shutdown of the US Federal government, the IRS will continue to collect tax and process income tax returns, but refunds will not be paid out until the shutdown has ended. There have been numerous articles written on this subject - I am linking to one here. Google will give you many more. MarketWatch - 3 unfortunate ways the ...


36

Years ago, a coworker bragged to me how his "tax guy" got him a huge refund. I told him my goal was to owe a couple thousand dollars, and that I'm glad I didn't have his guy. In the end, your return should reflect the truth, and a good tax guy will be little better than good tax software. The bottom line is that a refund is money you lend the government, ...


26

Is there some law I'm running into that is capping my tax return You're filing two returns, not one. Thus, the premise of your question is flawed. Just as importantly, the two tax returns don't ask each other what the other's current year refund is.


21

Try using the IRS tool - Where's My Refund. You could also create and check your tax account or request an account transcript online or via mail. These will show you if they have sent the check and when they did. If they have sent it and it is just floating around in space or someone else has cashed it - you will need to go through their refund trace ...


15

Read more closely: If you do not change your current withholding arrangement, you will have $7,817 withheld for 2014 resulting in an overpayment of $2,467. and later... Assuming this recommendation is in effect for the rest of 2014... If you do nothing you would get a refund of the full $2,467. If you follow the advice of whoever wrote that you ...


15

The bottom line is that no one knows, and it is dependent upon your particular situation. This is pure speculation, but I think that most people will not be affected. Given that W-2s are employer generated, and most people's tax filings and refunds are automated, they should get their refund on time. In some respects, the IRS is still working, I got some ...


13

A way to imagine taxes is as if you were pouring your income into a glass with lines along the side. Up until the first line is free (deduction and exemptions). Everything between that line and the next one is taxed at 10%, then 15% between the next two lines, etc. When you put in your first W-2, the income filled up the free space and the lower tax rate ...


13

Roughly, about one in a thousand people will have a tax return in multiples of a thousand. If 100 million people/families file, there could be around 100,000 with a return that’s a multiple of 1,000. Most deductions are limited to the total amount of taxes you owe, some are not. Therefore, your return is mostly limited by how much taxes you already paid - ...


11

IRS refunds are not taxable. State/local refunds are taxable, if you itemized your deductions for that year, to the extent that the overpayment provided tax benefit. IRS provide a worksheet to calculate that. Just to clarify: this is taxable in the year received. You do not need to amend the prior years. So if you received a $100 refund for State taxes you ...


11

Your assumption in the first paragraph is correct: "the amount you withhold from a salary for federal income taxes does not change the amount you actually pay in taxes". That part however: "my Wages on my W2 are roughly speaking my income minus what I withheld" - is not correct. Your wages are in box 1 on the W-2 form, whereas your federal income tax ...


9

Let's say you should have paid $4000 in taxes in a year, but you paid $5000, so you get a tax return of $1000. "Somebody" thinks that you should have tried to only pay $4000 in the year and get zero tax return. I hope he or she doesn't think you should pay $5000 and mess up your tax return so you get no refund. Once the end of the tax year is there, you ...


9

For the most part: No. If you had literally zero income this year than you will presumably owe zero taxes. But this doesn't in any way reduce the income you earned last year, so there's no reason why it should reduce last year's taxes. There are some types of deductions that are limited, like charitable contributions, and if you have more of these ...


9

You are mixing up two different kind of taxes here. What the craftsman pays and adds on his invoice is VAT. He adds this to every bill. The craftsman would have no way to know when and if you are eligible for any returns and if you reached the yearly cap (afaik ~6000€) already from other jobs. You later deduct the total costs for work done from your income,...


8

Answer to question as amended by OP's comment. Since you did not sign the amended return paperwork, there is no amended return that has been submitted to the IRS (even if IRS kept a copy of the submitted paperwork in its files). At this point, you have several options. You can just forget the whole thing. Your accepted return is your tax return for ...


8

The pure numbers answer says you want the refund to be close to $0. You can even argue, as some answers have, that you want to try to maximize the payment without receiving any sanctions for underpaying during the year. If you trace the money, it's easy to see why. Let's say you get a paycheck. Tag some of the dollars for Uncle Sam. These are the ...


8

So after a great deal of clarification, it appears that your question is how to adjust your withholding such that you'll have neither a refund, or a balance due, when you do your 2016 taxes next year. First, a little terminology. The more you have withheld, the more money will be taken out of your check to cover your estimated tax liability. Confusingly, ...


8

Bottom Line Up front: Yes you should be able to claim at least some of your moving expenses on IRS form 3903. In general if they pay you exactly for all your allowable expenses, and if you meet the other IRS tests, the money is tax free because it exactly balances with your expenses. That type of plan would be called an accountable plan in IRS Pub 521: ...


7

You are only responsible for IRS debt that you owe from returns that you have filed for yourself. The back taxes that your dependent owes are between him and the IRS.


7

No, that's not typical. The IRS refunds site suggests you call if: It has been 21 days or more since you e-filed It has been 6 weeks or more since you mailed your return "Where's My Refund" tells you to contact the IRS It might take longer for prior year returns but I don't see any alternate timelines for prior year returns, in no case would I ...


6

Your strategy is well thought out. Others use it same as you, to fund an IRA in the prior tax year with that year's refund. Gotcha? Forgetting to send in the money on time. Or not correctly identifying the tax year for the deposit. I know st**f happens, but I'd try to not get such a large refund in the future, better the money be in your pocket/account ...


6

Yes. In fact, it's explicitly mentioned in Publication 590-A that you can file before making the contribution, as long as you make the contribution before the deadline. Filing before a contribution is made. You can file your return claiming a traditional IRA contribution before the contribution is actually made. Generally, the contribution must be ...


6

It depends on when you're setting the goal. 1) When you have finished the year and you are filling out tax forms, your goal is to get as large of a refund as possible. 2) When the year begins afresh and you are earning money and paying taxes, your goal should be roughly to pay exactly the amount of tax owed so that at the end of the year you don't have any ...


6

According to the IRS Where's My Refund page: Where's My Refund? is updated no more than once every 24 hours, usually overnight. Try checking again tomorrow, and if it still says "processing," wait a few days, and check again.


6

Employee ID is the number or code your company uses to identify you uniquely. Its format is completely up to the employer, and it has no meaning outside of this employer.


6

You must claim any refund within 3 years of the original deadline. So, she'd have to file her 2014 tax return by the April 17, 2018 deadline to get a refund for 2014. Most states use the same timeline, some longer, I'm not aware of any that have a shorter period. Some states do require an extension be filed even if a refund is owed, not sure how that ...


6

It will not make a difference in the amount that is actually incurred, but it could make a difference in the amount that is withheld, which could change the amount that you owe or the refund you get when you file. Bonuses and other non-recurring income are withheld at a flat rate, while recurring pay is extrapolated out to a full year and withheld as if ...


6

No. It is what it is. There is very little you can do once Dec 31 has passed. If you are able to deduct a deposit into an IRA, that's an option. Short of that, there's no choice to simply claim income in the next year.


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