Posted on 04/19/2010 9:18:11 AM PDT by Slyscribe
Amid all the optimism that the consumer is back, it’s worth considering one of the reasons why: a huge tax refund season.
As the economy was nose-diving last spring, most people probably overlooked the record-smashing $259 billion in refunds awarded (as of April 24) — roughly $40 billion, or 17% ahead of the 2008 tax season.
Back then, panic was in the air, consumers were retrenching and the refunds acted as a Band-Aid on an open wound. But this year, with an economic upturn under way, an even more rewarding tax season is serving more as a vitamin boost.
New IRS data out Friday show that refunds are running about $10 billion ahead of last year’s record pace, even though the agency has processed 4% fewer returns.
(Excerpt) Read more at blogs.investors.com ...
Didn’t this happen with the rebate check we got a few years back?
Don’t think they’re spending it on new cars or other items. They’re stashing it away, or using it to pay off bills. Not much of a “stimulus” there.
What? Even more poor schlubs than usual gave the Federal Government interest-free loans this year?
Ah yes, nothing like the old “ extra tax refund” in order to give Americans a false sense of a financial boost. There nothing “extra” about it. The federal government has over-taxed us. This bogus “extra” is nothing more than an effort by the current administration to encourage consumers to spend money.....money which we DON’T have.
The expanding class of citizens who pay Zero taxes but are eligible for tax credits and Earned Income Credit. And this groups proves over and over why they often times are in financial difficulties. When they get some extra dollars they don’t put them away for a rainy day. NO, they instead spend them on big screen TV’s, new cell phones, iPods, etc. etc.
Suckers, all they did was give the government an interest-free loan.
It means the Govt. is hurting because they are having to send money to citizens, instead of the other way round. Of course, it’s good for the country, though.
Just think out great our economy would be every day if the government did not take our spending capital away...
I usually come out either owing or getting something back, but it's usually around $250 or less, either way. It's hard to get it just right. Usually the fed overpayment refund pays for the state underpayment due.
I try to owe as much as possible without paying a penalty.
I try to come out even or owe a little bit, but tho I tried to follow the current tax laws and all I got nailed with the largest bill I have had in my lifetime.
I did not have to pay a penalty but I got stuck with increased taxes already and my income didn’t change much, in amount or in type, from the last several years.
My guess is we’re seeing the results of layoffs from last year. Having your income crash half-way through the year can result in bigger-than-expected returns, because people often set their withholding based upon a full year of income. And with the income tax being progressive, and typically deductions being flat, well, when income falls so does the total tax bill.
It would be VERY incorrect to think this "record" is due to anything but people who were laid off during the year, getting their earlier overpayments of their withheld taxes back. Those refunds aren't being blown on cars or even new appliances while Dad's still out of work.
I believe its time to get a new muffler.
That was a rebate check. My taxes didn’t “go down” this year even though my pay dramatically did.
Since when are refunds AWARDED!!. You overpaid YOUR money to the GUBMINT. (Except the EIC folks, aka Income Redistribution Credit)It is not the GUBMINTS money. Damn it.
One way I used to keep tabs on potential tax liability/refunds was to use my current computerized tax program. In June, I would take my paycheck YTD figures and plug them in as annual earnings - then make needed withholding adjustments. Then in September I'd do the same. Always came in close to the mark.
Some of us don’t have a choice. As a single homeowner, I tried to file Single-4 or Single-5 so as to not have as much taken out. My HR tossed it back at me and told me to stop screwing around.
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