Has anyone else noticed a huge change in your tax returns? We have traditionally got a return of $3500 to $5000 in a return, but this year I owe $2000. When I looked at the comparison for the last year, I noticed that Obama’s pay less tax out of your check thing has killed my return. I knew there would be a difference, but I definately did not expect to pay half of the federal tax that is normally taken out. In hindsight I sure wish we would have been given an option to be part of Obama’s pretend tax break. I would obviously rather pay my taxes of the cousre of the year than all at once. Good luck to everyone else.
I was fortunate…My wife and I had enough deductions so we’re getting a refund…problem is, About 2/3 of it goes to pay the state… At least when it’s all done, everyone (state, fed govt) will have been paid. and we’ll have a little left, now it starts all over again…Glockshooter, I know how you feel…
This is exactly why I feel all Americans should be required to pay their taxes quarterly like I do.
If we stopped having employers take all the taxes from their paychecks and make the citizens responsible for paying the taxes themselves they would have a much better idea how much of their money the government is actually taking from them. If people were allowed to get a hold of that money have to save it for tax time and then have to pay it to the government themselves they would scream a lot louder about their taxes. People tend to look at their “take-home” pay as what they are actually making in their jobs, conveniently forgetting about all the money they never see which is being withheld for good old Uncle Sam.
I’ve always felt that tax with-holdings are nothing more than a scam perpetrated by the government on the people. Let the people have all their money and then pay it to the government. There would be a tax revolt in less that 6 months.
That argument is actually one reason why I would like to see the income tax scrapped and a national sales tax (not value added tax) implemented instead. Then you would see how much money is stolen in taxes every time you went shopping!
I agree also strongly, being self employed I understand this concept. I’ve always thought if everyone paid taxes this way, things would change real quick. As far as a scam perpetrated, I don’t think there is anything they do that isn’t a scam.
I have a suggestion for glockshooter and others that like a big return every year. Take the maximum number of deductions you feel comfortable with and open a money market account that automatically withdraws $500 from your checking account every month. At the end of the year you will have $6000 dollars PLUS interest in that account. If you owe the government some of that then pay them, if not, save it or spend it on something.
Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $276: $0 in taxes
Over $276 – $400: 10% payroll tax
Over $400 – $1,392: $12.40 plus 15% of excess over $400
Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392 Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
$14,423: pays $4,162.17 plus 35% of excess over $14,423
Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $233: $0 in taxes
Over $233 – $401: 10% payroll tax
Over $401 – $1,387: $16.80 plus 15% of excess over $401
Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387 Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
$14,450: pays $4,169.99 plus 35% of excess over $14,450
I just did my and my GF’s taxes with one of the more popular store bought software jobs. Aside for the “first time home buyer’s credit” we are getting back roughly the same mount as last year.
Maybe we are just in a lower tax bracket that did not get effected? My rents earn substantialy more but they have not done their taxes yet…
I’m in the middle of doing my taxes. Its hard to say where I’ll land, but I’m a bit fearful for the results already. Paying property tax last month and repaying the first time home buyer’s credit isn’t a fantastic way to begin the year.
you dont have to repay the first time credit this year, you can divert a year, by then hopefully by then they pass the bill where you wont have to pay it back
I would take a strong look at changes in your deductions as the reduced withholding is highly unlikely to account for the net change of $5,500 to $7,000 that you claim. For the withholding to impact you to the degree that you stated, the withholding would have had to be over $100 a week back into your pocket. I’m sure you would have noticed that kind of change. Unless you are making 6 figures a year, the withholding changes would have added $60 a month to the paycheck of you and your spouse. $120 * 10 months (changed in March) would be $1200. That’s how much your refund would have gone down.
Does this impact a lot of people that were unaware? Yes.
Did Obama kill your tax return to the tune of $5,500 to $7,000? No.
