Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

1 Bump

S/O on tax cuts question ... is this fair?

I am using myself as an example.

I am a married SAHM. DH works over 40 hours per week. Our annual income is $36,000 and we have 3 children. We live within our means and do not accumulate debt with credit cards, nor do we have cell phones or pay for cable; we rent. (All other debt, like the car, we are slowly paying off). We do no take anything from entitlement programs (no food stamps, no WIC, no disability, etc.). We plan on using our return to send our kids to a 2-day a week private school. (the other days are spent homeschooling).

Ultimately we pay zero in federal withholding and pay very little for state taxes - which we usually get $1000+ in state tax return. Below is what http://www.mytaxburden.org/ calculated as our possible returns when filing for 2011 (although I believe they are actually higher b/c last year - under Bush tax cuts - we received $6000+).

(1)Income Tax if All Bush Tax Cuts Expire:
$1,368 refund

(2)Income Tax, Republican Plan:
$4,125 refund

(3)Income Tax, Obama's Budget Proposal:
$5,947 refund

(4)Income Tax, Democratic Plan:
$4,508 refund

Do you think this is fair?

 

And don't worry - you won't hurt my feelings ;-)

 
Anonymous

Asked by Anonymous at 1:09 PM on Nov. 24, 2010 in Politics & Current Events

This question is closed.
Answers (14)
  • If we were withholding too much, then we'd owe at the end of the year. We do pay into SS, and Medicare, etc., but nothing is taken out for federal taxes - but we get this huge refund.


    No, if you had too LITTLE withheld you would OWE. If you have too much withheld, it is refunded. Think of it like paying for something, if the bill is $300 and you pay $200, you'd owe $100. But if the bill is $300 and you pay $400, you are owed $100.

    And no, I don't think it's fair that people pay little to nothing in and get a huge refund (much more than they pay in) and some pay a lot in and still owe at the end of the year. Our kids are grown so we don't have them as deductions now, but the most we ever got was maybe $1,500 and we paid in a LOT. Nowadays people making the same as we did back then are getting $5,000+ and I've seen some say they were getting $10,000+ back. INSANE
    DSamuels

    Answer by DSamuels at 1:41 PM on Nov. 24, 2010

  • First, let me applaud you for living within your means! Hubby brings home more (but no where near triple digits) and we have two kids so I don't know how you do it. I don't think taking tax cuts from anyone making a 5 figure salary is right. I think taxes should be coming from the top down and not the bottom up, but since the politicians aren't at the bottom it's not likely to happen in this lifetime.

    scout_mom

    Answer by scout_mom at 1:13 PM on Nov. 24, 2010

  • Are you trying to say you are not paying your fair share?
    tootoobusy

    Answer by tootoobusy at 1:16 PM on Nov. 24, 2010

  • Are you trying to say you are not paying your fair share?
    _____________________________________________
    I am saying that I don't pay anything in taxes, and I get a HUGE refund ...

    ... I am asking YOU if that is fair.
    Anonymous

    Comment by Anonymous (original poster) at 1:19 PM on Nov. 24, 2010

  • Well, you have to be paying SOMETHING in or you cannot get a refund at all. Your refund is what you paid over and above your basic liability; in 2009 that was $4569 if married filing jointly (NOT counting the two dependents).

    Has nothing to do with fair... sounds like you're having too much withheld. Ideally, you want no refund and no tax owed.
    gdiamante

    Answer by gdiamante at 1:31 PM on Nov. 24, 2010

  • Oops... three kids! And each of those, plus you, lowers your liability.
    gdiamante

    Answer by gdiamante at 1:32 PM on Nov. 24, 2010

  • sounds like you're having too much withheld.
    ______________________________________
    If we were withholding too much, then we'd owe at the end of the year. We do pay into SS, and Medicare, etc., but nothing is taken out for federal taxes - but we get this huge refund.
    Anonymous

    Comment by Anonymous (original poster) at 1:34 PM on Nov. 24, 2010

  • No, if you had too LITTLE withheld you would OWE. If you have too much withheld, it is refunded. Think of it like paying for something, if the bill is $300 and you pay $200, you'd owe $100. But if the bill is $300 and you pay $400, you are owed $100.
    _____________________________________
    Sorry, you're right .... all this verbage is confusing me .... I guess since no $$$ come out of our paycheck for fed tax, that means that no money is being withheld, right?
    Anonymous

    Comment by Anonymous (original poster) at 1:43 PM on Nov. 24, 2010

  • anyone else? What about those of you who support higher taxes for the wealthy?
    Anonymous

    Comment by Anonymous (original poster) at 2:07 PM on Nov. 24, 2010

  • You are correct, if nothing comes from the paycheck, then nothing is being withheld. HOWEVER...that would also mean you'd get back zero dollars. A refund is for overpaid tax,,, you aren't supposed to get a refund when nothing was paid.

    SOMETHING isn't right here, and you really want to doublecheck because you don't want to get an audit or a big bill for unpaid taxes from previous years.

    Again.. fair has nothing to do with it. Nothing about taxes is fair. Neither is anything about life.
    gdiamante

    Answer by gdiamante at 3:33 PM on Nov. 24, 2010

Next question in Politics & Current Events
CAIR

Next question overall (Just for Fun)
Do you eat the day of?