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Well, no.Owe/Don't owe is a function of withholding. Pay me a $100 each week and every April 15th I'll write you a check for a $5100 refund.
How much did you pay in total Fed tax compared to last year? I did quite well, in spite of not itemizing and taking the standard deduction for the first time in over 30 years. The tax cut lowered my overall Fed tax bill 15% so I'm a happy man.
I was trying to explain this to people in work. You have more money in your pocket every week. You're not giving them as big of an interest free loan. Didnt matter. They're all pissed their refunds are smaller. "You know they're just giving you your own money back right? You're not really gaining anything when you get that check." Blank stare...JFC! You are getting your REFUND each and every week in your pay check!
It's simple math, do it!
Oh, I'm sorry, does everyone what a tax reduction AND a refund?! The money has to come from someplace and it's YOU!
Well, no. For that to be the case, my family would have had to see an extra $115/week in the checks. There was more, but not $115 more.I was trying to explain this to people in work. You have more money in your pocket every week. You're not giving them as big of an interest free loan. Didnt matter. They're all pissed their refunds are smaller. "You know they're just giving you your own money back right? You're not really gaining anything when you get that check." Blank stare...
Agreed. Solution for us (and it's been in the works for some time): Move to New Hampshire.If you earn enough to itemize and live in a high-tax state and locality, yeah, you very well might come out behind on this one. Part of the idea is to stop rewarding high-tax/spend states with effectively taking the money from other states.
This affected our personal deductions, but we still had way over the standard deduction. My wife is self-employed and benefited from a few extra deductions. However, MA does not recognize some of the extra Federal deductions on Schedule C. Makes accounting difficult from year to year. And we always owe the state when we file. This year may be worse, still figuring it out.If you earn enough to itemize and live in a high-tax state and locality, yeah, you very well might come out behind on this one. Part of the idea is to stop rewarding high-tax/spend states with effectively taking the money from other states.
Refund is lower because they took out less. The optimum return is Zero dollars. You never want them holding your money.How about. Refund. But nuch much lower than lastbyear.