- 610
- 130
- Joined
- May 3, 2003
people shouldn't focus on the amount of the "refund" they get. you should focus on the amount of tax liability and the ratio of tax liability to income.
also, people should realize that the tax code changes from year to year. if you haven't looked around in a while, there are some substantial economic factors affecting the world we live in. your elected representatives make changes to the code that could result in a higher or lower tax liability for you. so even if your circumstances barely change, (i.e. only earning $1,000 more than last year) there could be a significantly different outcome. if you really want to understand why this year is different from last year, look at your tax return form from last year side by side with the tax return form from this year. don't just focus on the refund! every single line plays a part in why your refund is what it is. more accurately; every single line plays a part in why your tax liability is what it is.
want to understand why your refund amount is what it is?
1. print out a copy of your completed form. (the one that shows the line items by number, and a brief description of what the line item is)
2. go over the line item instructions for your form one by one. (get stuck? google the word you're unsure about. call the IRS or appropriate agency for help. go into a tax professional's office. go to a VITA location { http://www.irs.gov/Individuals/Find-a-Location-for-Free-Tax-Prep }. don't understand the answer you're given? ask for clarification. ask until you DO understand.)
3. do the math yourself with a calculator.
taxes should not be mystical and confusing. this is YOUR money. the more you understand the system, the better off you will be. if you're not sure whether or not your tax forms are filled out correctly, you should research the issues until you are sure. the "easy" way out is to pay somebody to do it for you, but please please please do not rely on somebody being correct just because you paid them a lot of money to perform a service for you.
also, people should realize that the tax code changes from year to year. if you haven't looked around in a while, there are some substantial economic factors affecting the world we live in. your elected representatives make changes to the code that could result in a higher or lower tax liability for you. so even if your circumstances barely change, (i.e. only earning $1,000 more than last year) there could be a significantly different outcome. if you really want to understand why this year is different from last year, look at your tax return form from last year side by side with the tax return form from this year. don't just focus on the refund! every single line plays a part in why your refund is what it is. more accurately; every single line plays a part in why your tax liability is what it is.
want to understand why your refund amount is what it is?
1. print out a copy of your completed form. (the one that shows the line items by number, and a brief description of what the line item is)
2. go over the line item instructions for your form one by one. (get stuck? google the word you're unsure about. call the IRS or appropriate agency for help. go into a tax professional's office. go to a VITA location { http://www.irs.gov/Individuals/Find-a-Location-for-Free-Tax-Prep }. don't understand the answer you're given? ask for clarification. ask until you DO understand.)
3. do the math yourself with a calculator.
taxes should not be mystical and confusing. this is YOUR money. the more you understand the system, the better off you will be. if you're not sure whether or not your tax forms are filled out correctly, you should research the issues until you are sure. the "easy" way out is to pay somebody to do it for you, but please please please do not rely on somebody being correct just because you paid them a lot of money to perform a service for you.
was getting 660 now getting half that oh well better than nothing 
