View Full Version : Question about taxes
ejestevane
Sep 13, 2010, 01:18 PM
I have 3 children and a non working spouse which results in no tax withholding on my weekly paychecks. I know we received a hefty return last year with only 2 kids and paid no taxes throughout the year. Will this year be any different with all the changes going on in the government?
wnhough
Sep 14, 2010, 01:11 AM
QUOTE,"I have 3 children and a non working spouse which results in no tax withholding on my weekly paychecks."---For your withholding on your weekly paychecks, I do not think that there'd be big change.
" Will this year be any different with all the changes going on in the government? "--- In general, there is a series of changes in federal tax laws in 2010. Additionally, there are many changes to the rate structures, exemptions, phase outs etc. For instance, individual, not corp entities, can no longer take an itemized deduction for state level and local sales tax. In 2009, those receiving unemployment benefits can exclude up to $2,400 from their taxable income. This exclusion will no longer be available in 2010. Also The AMT exemption( though I do not think that you are subject to AMT) is scheduled to decrease to $33,750 for single filers( it was $46,700 in 2009) and to $45,000 for those filing a married joint return.
Mileage reimbursement rates – The updated mileage reimbursement rates effective for January 1, 2010 are $0.50, $0.165 and $0.14 for miles incurred for business purposes, medical purposes and charitable purposes, respectively.
No more increase in standard deduction for sales tax on the purchase of a new vehicle.
If you are interested in tax law changes between 2009 and 2010, please visit the website;Alternative Minimum Tax (AMT) (http://www.irs.gov/formspubs/article/0,,id=207573,00.html)
Fr_Chuck
Sep 14, 2010, 04:55 AM
Why would a person except to get a "return" if they did not pay in. I know there are income credits, but the money we get is a refund of the over payment, it is our own money we pay in.
wnhough
Sep 14, 2010, 07:39 AM
QUOTE," but the money we get is a refund of the over payment, it is our own money we pay in. "---Agreed. It is not even free money from the IRS;as we know, refunds are due when the taxpayer has been overwithholding or has overestimated income or underestimated deductions, exemptions, and credits.
The IRS,They don't pay even interest on refunds unless the delay is due to IRS fault. For a timely filed return, interest does not accrue until 120 days after the filing deadline.
AtlantaTaxExpert
Sep 16, 2010, 07:44 AM
Wnhough and Fr Chuck:
Hey, guys, let's not forget about the various credits due. In 2009, ejestevane would probably have qualified for $800 for the Making Work Pay Credit, $3,000 for the Child Tax Credit and the Earned Income Credit for two or more children, which may have been as much as $4,000.
So, even if she had NO tax liability and built-in offsets, she could have gotten a refund somewhere in the $4,000 - $6,000 range.
wnhough
Sep 16, 2010, 11:04 AM
QUIOTE," So, even if she had NO tax liability and built-in offsets, she could have gotten a refund somewhere in the $4,000 - $6,000 range."--Absolutely right.
Thanks a lot for reminding me of those possible credits.