Why do some families get such a large tax refund?

How do some people get like $5000 or even $9000.00 back on there taxes. Do they make a lot or very little durin the year. My husband and i both work, and combined make prob @45,000.00, and we only get like$700.00 back. And we both claim 0 on our withholding part. I don't get it. Will someone kind of explain it.

  • SHARE THIS QUESTION:
Anonymous

Asked by Anonymous at 2:47 PM on Feb. 9, 2009 in Money & Work

This question is closed and filed in the CafeMom Encyclopedia.
Answers (13)
  • Well, we got back $7000 and it is mostly because he gets a bonus every year and bonuses are taxed at 25% automatically. But our tax bracket is lower, so we got all the extra back. Plus we don't claim any dependents on his w-4's and have 2 kids. But before he got bonuses, we were lucky if we got back $1500. There are just so many possibilities for bigger refunds. Also sometimes it works out better to have only one income. I worked 4 days last year and made $300. When I entered my income in on our taxes, our refund dropped by $50. I was pretty mad about that because it made me feel like the 4 days I worked was a complete waste of time, when considering that I paid $4/gal for gas to get there and had to pay babysitters too.
    slw123

    Answer by slw123 at 7:32 PM on Feb. 9, 2009

    Credits: 17292 Level 23
    Votes up:1 Votes down:0
  • are you having someone do your taxes? do you have kids?
    Rysana

    Answer by Rysana at 2:49 PM on Feb. 9, 2009

    Credits: 0 Level 1
    Votes up:0 Votes down:0
  • well some do work that much in a whole year and mostly it is how long they have been on the job. Two most likely some have been paying some of that money back later. If you make over a certain amount you have to pay some back. Kids play alittle bit of the part to. with just one child some people get a thousand back. I kinda don't understand too much myself, but thats how some of it works.
    Anonymous

    Answer by Anonymous at 2:50 PM on Feb. 9, 2009

    Votes up:0 Votes down:0
  • They have a lot of kids its 1000 per kid until 4 kids then drops to half, also they have home other deductables. They are usually paying a lot each month out of their pay check so yea, I would say they make a descent amount monthly.
    Anonymous

    Answer by Anonymous at 2:50 PM on Feb. 9, 2009

    Votes up:0 Votes down:0
  • Because they do not make much. If you are only making $45K per year and have atleast one child, you may want to consider changing who does your taxes. You should be getting back much more than that. My brother in law has 2 children, single and makes basically nothing, he lives off the government. But he got about $8000 back this year. The less you make during the year, the more you can get back. But you really need to consider giving someone else your taxes to do because we made A LOT more than you did but we got a lot more back as well.
    DDry

    Answer by DDry at 2:50 PM on Feb. 9, 2009

    Credits: 0 Level 1
    Votes up:0 Votes down:0
  • I have no clue --- are you sure you're figuring it right?

    We paid in over $7900 & got back about $6300 of that.
    Laura1229

    Answer by Laura1229 at 2:56 PM on Feb. 9, 2009

    Credits: 56 Level 4
    Votes up:0 Votes down:0
  • IF your really poor and have lots of kids you get the EIC plus the normal tax child credit and yeah make bank. We really got screwed over on our taxes this year my husband and I made 40k. And we only get back 550.00. My husband has the maximum taken out of his checks and my work my checks are so little they never take any federal out so that took 100bucks of our are refund and we have one kid.... We feel like we got screwed over this year but they were done right...
    aameliaz

    Answer by aameliaz at 3:29 PM on Feb. 9, 2009

    Credits: 0 Level 1
    Votes up:0 Votes down:0
  • That is about how much we got back when we made around 50K was $700. We had 1 child and no deductions. We didn't own a home, didn't deduct child care, nothing. When you own a home you get to deduct your interest, property taxes, all that jazz.
    Anonymous

    Answer by Anonymous at 10:10 PM on Feb. 9, 2009

    Votes up:0 Votes down:0
  • I adjust my W-4 and dh's so we don't get a big refund. People act like that if free money. Like they hit the lotto. It's money you could have been getting on your paychecks. If your getting a 7000 refund that means they took $583 too much from your monthly paychecks. I'd rather have my money on my check. Especially in todays world. It's not a windfall...
    Anonymous

    Answer by Anonymous at 10:11 PM on Feb. 9, 2009

    Votes up:0 Votes down:0
  • You get more back if you're poor. We're getting back like $7500 but we only make $20,000 a year in a 3 person household. So if you want more taxes back, make less. In the end you still win and have more money than us and other people out there, so quit complaining!
    Anonymous

    Answer by Anonymous at 2:01 PM on Feb. 10, 2009

    Votes up:0 Votes down:0