So who did their taxes, did you end up in the red?

[Cobra Jet]

So with all the tax changes in 2018, who has filed their taxes and now owes $ instead of getting a refund, even AFTER making the appropriate changes in 2018 per IRS calculations?

Some folks are ending up like this - $8k owed:
https://www.cbsnews.com/news/federal-tax-refund-2019-irs-colorado-woman-tax-bill-left-her-in-tears/

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[Nagare]

If you get a refund, that means you gave a free loan to the government during the year. If you owe that much, something got messed up for your withholdings during the year (actually read the article and yes she did use the withholding calculator).

I had to pay $139 this year.

 

[tom_sprecher]

I can't understand why people want a large refund. If they would let me, I would not pay any taxes all year long and prefer paying one lump sum on April 15th. Why loan your money to the government at 0% interest minus what you lose to inflation? That's either being crazy, or a total lack of financial self control.

 

[HoosierDaddy]

If you do things right, you will owe.

And for more reasons than you think. Not just so you have use of that money until tax day.

A few years ago, someone filed a return with my SSN but a different name, different address and a fake W4. Thanks to idiot legislature who mandated IRS must issue refunds within x days, the IRS solution is to knowingly mail out obvious fraudulent refunds since even a cursory investigation would make them late. When I filed (as late as possible), it was rejected because they already issued a huge refund to my SSN. When the IRS explained what happened, they seemingly gleefully told me an investigation could hold up my refund for a year or more (so basically, the law requiring mailing checks out fast, only applies to fraudulent returns). I told them I owed money and wanted to know if I should delay paying it for that year plus. They did not think that was funny.

 

[Nagare]

That's either being crazy, or a total lack of financial self control.

That is what it is for a good amount of people. Money in account = money to spend!

 

[tom_sprecher]

Having been self employed as a manufacturer's rep for over 30 years, getting paid straight commission, and never knowing when the next check will show up makes me an expert at financial self control. It can easily be months between checks.

 

[SVT-DADDY]

I think the better question is what is the net year to year per dollar made. I usually get a small refund +/- 2k. I set things up this way because I refuse to write a check to the IRS.

My income is basically the same for 2018 as it was for 2019. I'll be pissed if I end up having to pay! lol

 

[vernonator]

I never get a refund (no free loan to gov't) - I owed about $500 more this year than last but my withholdings went DOWN $250 a pay period between my wife and I. Our income also went up so while I paid more total tax it was not a surprise at all.

 

[SVT-DADDY]

I never get a refund (no free loan to gov't) - I owed about $500 more this year than last but my withholdings went DOWN $250 a pay period between my wife and I. Our income also went up so while I paid more total tax it was not a surprise at all.

So per dollar made you paid less taxes then.

 

[CAL Captain]

We never do ours until October.

But the "tax cut" didn't help us, especially once the promised "pass-through" entity deduction was taken out of the final bill.

 

[samd1351]

The tax cut actually helped me. i went from owing 4K+ last year to owing 2K+ this year! F#*ing thieves

 

[2016Gruv]

The majority of taxpayers will have their overall tax burden reduced as a result of the new tax law. What many fail to consider is that their tax withholding went down over the course of an entire year, which was reflected in their paychecks (all else being equal). You can't assume the law was unfavorable simply based on your refund. Account for the reduced taxes throughout the year and the refund.

 

[samd1351]

My problem isn't my withholdings. It's my wie's. With the all of the City benifits (HSA and Medical Reimbursment, etc.) plus the low government salary, they never take out enough taxes. Plus we used the last of the education credits last year for our son. I feel like I get good value for investment on what i pay the City/County through property taxes on the house. My return on investment for federal taxes is horrible. The amount of government waste and endless spending at the cost of the average citizen is stupifying. I better get off this topic and go have a beer.

 

[ugstang17]

$1800 less were withheld for the year than the previous year yielding a higher net amount in paycheck each week. Total refund was about $1000 less than previous year so looking at the two I was 800 to the good compared to the previous year with similar annual income. Happy with the result and a little more cash on the front end due to a lower withholding scale each week.

 

[CAL Captain]

The majority of taxpayers will have their overall tax burden reduced as a result of the new tax law. What many fail to consider is that their tax withholding went down over the course of an entire year, which was reflected in their paychecks (all else being equal). You can't assume the law was unfavorable simply based on your refund. Account for the reduced taxes throughout the year and the refund.

My actual tax burden is going up significantly due to the loss of the "pass through" 15% exemption, and the $10k cap on state and local taxes. I would have probably broken even with either one and not the other but not with both going against me. I pay quarterlies so I have a pretty good idea what's coming.

I must be rich because I'm paying more than my fair share before my "cut".

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