Average tax refund more than $3,000 so far

USA Today | March 6, 2014

[Cyber Liberty]

Average tax refund overpayment interest-free loan to the government more than $3,000 so far

Fixed it.

Improved the fix.

[Cyber Liberty]

Yes, it is. State, too. Counts as income. I have this from my CPA.

[Cyber Liberty]

It’s income. It’s taxable.

[nascarnation]

Not true for many.
EICs are getting dough “back” without ever paying in.
28 million returns averaging $2200.

[nascarnation]

You’re saying federal tax refunds are taxable?

[RandallFlagg]

I used mine to get my first silencer.
Heh-heh!

[Cyber Liberty]

EIC is different, it’s meant to generate a negative tax. It’s welfare, disguised as a tax item to fool people who get pissed at freeloaders. You know, us. I can see it’s not fooling you either.

You and I have been around the horn a few times, race-car guy. I know you get it. :^)

[Cyber Liberty]

Yes. It’s because they are considered under-withholding.

[Cyber Liberty]

I misstated that. It’s because it’s positive cash flow, therefore it’s income. Doesn’t matter that it came from the IRS.

[Jim Robinson]

For $3,000 I could’ve bought a brand new Mustang (in 1966).

[US_MilitaryRules]

Gee that’s nice.

[nascarnation]

Never knew that. Of course I don’t think I’ve gotten a federal refund in the last 30 yrs.

Turbo Tax seems to agree with my position though:
https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/What-Is-Taxable-Income-/INF15613.html

[Cyber Liberty]

Don’t know about TT.

States have different rules, BTW. Over 50 different ways it’s interpreted. It’s like getting interest on bank funds. We reported it when we got refunds, but that was a few years ago, we now always have to write checks.

IOW, it’s been many years since I’ve had refunds, so I’m a bit out of practice on the rules...

[Cyber Liberty]

I forgot to ask, Jim...

What're you gonna do with your slice of the pie, old friend? Get some blow? Buy us another drive for the server??

(Who in the Heck is collecting all this windfall? Where's mine?)

:^D

[Old Yeller]

We write the IRS a check every year. On top of what we have paid them throughout the year. I do not mail it one day earlier than April 14th and I also write F U THIEVES in the memo section. They cash it anyway.

You're lucky some d-bag at the IRS who reads your memo doesn't take your check and throw it away claiming you never paid. I did the same thing when registering my cars, because of the high personal property tax, and they sat on it for awhile and I was late getting my renewal tags. Vindictive bastards.

[SoFloFreeper]

Think about it, my brother...these LIVs who are sooo excited about getting a $3,000 refund have had too much money withheld from their paychecks.

All that money went to the feds, and was used to pay for welfare, etc.

Now, a year or so later, the taxpayers do their taxes, and find out, “Oh, I sent in too much money...I get a ‘refund’!” When the FACT is, the government took there money as an INTEREST FREE LOAN...

If these people have LESS money taken out this year, their TAKE HOME PAY all through the year will INCREASE....and Obama the Clown will not get their money to use for his disastrous policies.

Of course, they won’t get a big “refund” in 2015, but who cares? They’re giving themselves a raise now.

My goal is to owe money (not too much, but some) OR to have a SMALL refund every year. That way I know FedZilla isn’t getting more than is legally necessary.

[Jim Robinson]

My goal is to never allow them a penny more than I must pay and never one dime until it’s due. Settle up in October.

[EVO X]

IOW, it’s been many years since I’ve had refunds, so I’m a bit out of practice on the rules...

I've seen people make the same comment over the years about refunds being taxable income for the next year. I think some of the confusion comes from the IRS forms that allow one to apply a refund to next years tax liability. Most of us working stiffs don't have to worry about it, but it is useful for people that a have one time big taxable event they know is going to happen. Self employed may want to use it as their first quarterly payment.

[Cyber Liberty]

My goal is to never allow them a penny more than I must pay and never one dime until it’s due. Settle up in October.

That is my goal as well. Paying over to get a refund is giving the bastids an interest-free loan. If I'm getting a refund, then I'm doing it wrong.

[Red in Blue PA]

Well your CPA is wrong.