Why is this allowed? i only made 70k last year

GoogleCat
GoogleCat

why is this allowed? i only made 70k last year

Dreamworx
Dreamworx

I still cant believe plebians don't know how tax refunds work, the bigger your refund, that means the more you fucked up when filing your taxes. Refund money is simply the extra money you gave to the government that you didn't owe them, then they give it back to you.

If you filed your taxes completely perfectly like some kind of autistic savant you would have a $0 refund every year

Fried_Sushi
Fried_Sushi

Just blame Obama

/thread

Stark_Naked
Stark_Naked

I owe $1200, I'm not getting $1200 back.

Lunatick
Lunatick

If you owe $1200 then you can adjust your withholding next year because you obviously didn't withhold enough this year.

Either way your tax bill will be the same.

Poors experience less sticker shock when they withhold extra during the year and get a refund for some reason.

Booteefool
Booteefool

Presumably that gives them a better NPV than leaving the money in their pocket for them to spend it on dumb shit.

PackManBrainlure
PackManBrainlure

Someone fucked up his w4

Srsly just put 0

Deadlyinx
Deadlyinx

How much tax did you have withheld?

Snarelure
Snarelure

Ik right! Fucking retartds! Basic finance principle: a dollar today is worth more then a dollar tomorrow

PackManBrainlure
PackManBrainlure

what did you do to reduce your tax liability?

GoogleCat
GoogleCat

Socialism baby.

You'll pay a hell of a lot less if you start a business.

happy_sad
happy_sad

donate more to charity

Burnblaze
Burnblaze

paying 2% income tax is pretty cool, that doesn't even pay the helicopters.

Lunatick
Lunatick

If you filed your taxes completely perfectly like some kind of autistic savant you would have a $0 refund every year

Actually if you filed your taxes completely perfectly like some kind of autistic savant you would pay the largest amount possible before incurring underwithholding penalties and interest.

And if you had a guaranteed rate of return on capital higher than the accumulated penalties and interest, you'd withhold nothing and pay 100% of your tax obligation on April 15.

Harmless_Venom
Harmless_Venom

2% income tax
Learn how withholding works, kid.

Burnblaze
Burnblaze

And if you had a guaranteed rate of return on capital higher than the accumulated penalties and interest, you'd withhold nothing and pay 100% of your tax obligation on April 15.

what? that doesnt make sense

owe $100
guaranteed to grow to $200 by next year
dont report it
IRS finds out you owe another $100 at the end of the year
charges 50% penalty on $100 for total of $150
pay $150 and pocket $50

Emberfire
Emberfire

If you have a high deductible health insurance plan, just contribute to your own HSA account. You still get to keep the money, though, it gets held for medical stuff or, medicine until you retire then you can withdraw it easier.

By doing so you can claim your HSA contributions on your taxes and get a decent deduction on taxes owed.

My net would have been zero but i put 3350 into HSA and got nearly 700 back ton taxes

RavySnake
RavySnake

1. The capital gains taxes aren't owed until you sell the investment. Why would you assume its payable in the same taxable year that you bought it?

2. You vastly overestimate the penalties for underwithholding. 50% penalty? Are you 12?

I realize this stuff goes over the heads of most of you, but that doesn't give you license to post stupid comments.

BinaryMan
BinaryMan

only 70k
muh humble brags

CodeBuns
CodeBuns

i used simple numbers as an example, and you chose to attack that rather than defend your own post.

thanks for confirming that you are wrong, thats all i was saying.

takes2long
takes2long

i used simple numbers as an example
No, you made up fake numbers in order to manufacturer a response that has no merit. There's a difference.

In reality, the penalty rate for underwithholding is in the 12-15% range (it entirely depends on when your income is earned throughout the year). While it's not alway reliably possible to beat that on a risk-adjusted basis, it's possible. So when your throw out a fake example of "50%" you make yourself look like an ass.

Own your fuckups, kid.

Evilember
Evilember

ok sure, my example used unrealistic numbers.

you are still wrong :^)

TalkBomber
TalkBomber

So you admit you made up the response, lied about the truth, and were presented by me with the real fact ... but you still think you're right?

Alt-truths aren't a thing, fag. You're a moron, and you're filtered.

TurtleCat
TurtleCat

mad

PackManBrainlure
PackManBrainlure

whatever not american

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