2009 income taxes

I had my income taxes done today and my wife and I got back the largest refund we have ever gotten thanks to the new tax credit Obama signed into law[according to our accountant]. If you are married and both of you work you get the 800.00 tax credit. It's called the "encourage to work credit". Our incomes and taxes paid were almost the same as last year but our federal tax refund was $200 more.

 

I have already been warned that it's not going to be pretty. Sold some stock and (oh my God, it was at a profit !) it's gonna bit me in the ass.

 

Serves you right. Don't you know working hard and trying to get a little bit ahead is looked at in a negative light nowadays? You should be ashamed at trying to be better than others.

 

Should it not have gone up $800 rather than just $200? I am closing on a house next week and plan to get the $6500 credit for that.

 

I don't think tax credits work that way Thelt. She explained it to me but I forget exactly how she put it. Any way I got a damned good refund,that's all I cared about.

 

Damn! People frown on trying to get a little bit of head? What's the world coming to?

 

I blame Clinton.

 

You should not receive a refund. That basically means you gave the government an interest free loan. I have no problem paying my fair share but I don't want to pay more than my fair share...

I think tax refunds are a way for the government to convince simple minded people that they are really not paying all that much in tax...

You would be better off putting that money in any kind of investment. Money market would pay you something. Something is better than nothing.

If I receive a large refund my accountant and I are going to have a talk. I would rather pay them more at the end than have them send me a check. My accountant does a good job of keeping track so I normally receive a small federal refund, last year was $30 or $40, and wind up paying a couple of hundred to the state...

My opinion, if we have to pay income tax we should have to pay every month like the power or phone bill. If people had to do that they would realize how much they really pay in taxes.

I would rather see the Fairtax implemented. Seems like a better idea. Would save a ton in tax collection...

Test123

 

Tax credit savings = tax credit *1= dollars saved (if refundable credit, sometimes if you have no income tax liability no dinero from credit)
tax Deductions (before various phaseouts depending on the deduction)* your tax rate based on income level = dollars saved.

You either had less deductions or made more money. The personal also exemption went up which is essentially a deduction.

http://articles.moneycentral.msn.com/Common/Taxes/2008-2009-personal-exemption-changes.aspx

http://blog.turbotax.intuit.com/taxes-101/tax-deduction-vs-tax-credit/

 

....Nice post!........but a fairtax makes too much sense to ever be implemented!