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Why are fewer people getting refunds?
#9034761
04/16/24 04:51 PM
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Joined: Oct 2008
Posts: 15,198
Tbar
OP
THF Celebrity
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OP
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Joined: Oct 2008
Posts: 15,198 |
A tax mystery: Why are fewer people getting refunds? The number of people who owe the government has also been rising. If it seems like you’re not getting a tax refund like you used to, you’re not alone. The share of taxpayers who get money back at tax time is slowly and, a little mysteriously, shrinking. At the same time, the number of people having to cut a check to the government has been rising. The number of refunds so far this year is down by 3.3 percent, according to the latest IRS statistics that came out before Monday’s filing deadline. It was down last year too, and the year before that. While no one is exactly sure why, some point to changes in the way people work. Others suspect it has to do with the way the government calculates how much in tax should be withheld from people’s paychecks. And the reversal of fortune could have consequences for how and whether people comply with tax laws. “We want to make sure that people are, in fact, filing,” said Bob Kerr, a former longtime IRS official, now a Washington-based tax practitioner. “And there are a whole bunch of people who do it because it pays to do it.” “I think this is really going to be a problem.” Before the pandemic, about three-quarters of filers typically got refunds. Now about 65 percent do. The IRS distributed fewer refunds last year — 105 million — than it did in 2010, despite collecting 20 million more returns.......... https://www.politico.com/news/2024/...-00152248?utm_source=pocket-newtab-en-us
Make America Great Again
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034772
04/16/24 05:09 PM
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Joined: Jan 2024
Posts: 124
Mr. 806
Woodsman
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Woodsman
Joined: Jan 2024
Posts: 124 |
I will take a wild stab....billions in student loan "forgiveness", rampant illegal handouts and billions to other countries. Overall one giant broken circus and us hard working folks left to foot the bill.
Last edited by Mr. 806; 04/16/24 05:10 PM.
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034776
04/16/24 05:14 PM
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Joined: Apr 2005
Posts: 19,825
TurkeyHunter
THF Celebrity
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THF Celebrity
Joined: Apr 2005
Posts: 19,825 |
More people correctly filling out or modifying their W4s to have a more accurate withholding?
To be determined
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034787
04/16/24 05:51 PM
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Joined: Apr 2011
Posts: 8,070
Cool Mo D
THF Trophy Hunter
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THF Trophy Hunter
Joined: Apr 2011
Posts: 8,070 |
Old Fool!
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034811
04/16/24 06:11 PM
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Joined: Jan 2009
Posts: 19,270
Judd
#1 Creedmoor Fan
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#1 Creedmoor Fan
Joined: Jan 2009
Posts: 19,270 |
The withholding calculation is likely a part but another bigger part is there are more two income families than there has ever been. You get one that makes significantly less than the other and their withholdings aren't calculated on the proper tax bracket.
I don't think it's folks adjusting their W4...many folks aren't smart enough to get out of the rain, that would take logic and brain power that I've not seen our society have in the last decade.
Don't let your ears hear what your eyes didn't see, and don't let your mouth say what your heart doesn't feel
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034818
04/16/24 06:27 PM
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Joined: Jan 2019
Posts: 3,769
10 Gauge
Extreme Tracker
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Extreme Tracker
Joined: Jan 2019
Posts: 3,769 |
Because the government is desperate, greedy, and irresponsible. Something like 90 percent of the deficit is owed to American citizens. They talk about it as if they owe it to the banks or to China.
A good percentage of Congress can’t even get a credit card due to their financial irresponsibility. It’s no wonder.
1 Thessalonians 4:11-14
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034827
04/16/24 06:39 PM
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Joined: Jan 2019
Posts: 3,769
10 Gauge
Extreme Tracker
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Extreme Tracker
Joined: Jan 2019
Posts: 3,769 |
As a matter of fact, as the sole provider of a household of 4, paying cash out of pocket for my wife to go to college, and a salary just under $150k gross, I still have to pay a couple grand a year. They were already withholding more than a quarter for taxes. On top of that, 5 years to the date after I got out of the Army, they came after me for $4,522.07 for “either an unsettled or overpaid travel claim.” The only documentation they have to back it up is the letter or notice drafted last month. $4,522.07 is literally the entire sum of your entitlements when you ETS and i have to provide bank statements, orders, and receipts 5 years in the past as proof I do not owe them money. Plus i spent hours in the phone to be referred from one person to the next in a big circle and no one can help me with documentation. So I am about to pony up $4,522.07 by the 18th so that I won’t lose my VA home loan on the house I am trying to buy. That’s 2 weeks before closing. That is almost exactly what i’ve still got in the checking account. I don’t think it is a coincidence. At least my wife is an RN
Last edited by 10 Gauge; 04/16/24 06:59 PM.
1 Thessalonians 4:11-14
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034829
04/16/24 06:46 PM
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Joined: Apr 2005
Posts: 19,825
TurkeyHunter
THF Celebrity
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THF Celebrity
Joined: Apr 2005
Posts: 19,825 |
If you're doing it right, you're not supposed to be getting much of a refund correct?
To be determined
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Re: Why are fewer people getting refunds?
[Re: TurkeyHunter]
#9034835
04/16/24 06:53 PM
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Joined: Apr 2013
Posts: 8,508
freerange
THF Trophy Hunter
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Joined: Apr 2013
Posts: 8,508 |
If you're doing it right, you're not supposed to be getting much of a refund correct? That’s the way my feeble mind sees it. I don’t want them to have my money all year. If it’s pay me now or pay me later then I’m good with later.
At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR Keep your gratitude higher than your expectations. RWH
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Re: Why are fewer people getting refunds?
[Re: TurkeyHunter]
#9034836
04/16/24 06:53 PM
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Joined: Oct 2012
Posts: 25,321
Creekrunner
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Joined: Oct 2012
Posts: 25,321 |
If you're doing it right, you're not supposed to be getting much of a refund correct? Exactly. The only refund I remember getting excited about, I used to buy a small TV. It was black and white.
...and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth. Gen. 1:28
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034838
04/16/24 06:54 PM
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Joined: Sep 2012
Posts: 16,008
Jimbo1
THF Celebrity
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THF Celebrity
Joined: Sep 2012
Posts: 16,008 |
1st time in 20 years we had to pay in this year. Usually get a grand or so back but had to pay in over $3k this time. Only thing different this year is the wife didn't work for over half the year. That's it, didn't change a thing W4 wise, made 3/4 the money we made a year prior. I did adjust my withholding on my SS check after we got the bad news.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034841
04/16/24 06:57 PM
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Joined: Mar 2010
Posts: 12,263
ntxtrapper
THF Celebrity
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THF Celebrity
Joined: Mar 2010
Posts: 12,263 |
People with a significant amount of liquid made a lot of money from the interest rate being higher. It’s income that folks have to pay taxes on. It wiped out my return but thanks for the coin Joe.
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034843
04/16/24 07:01 PM
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Joined: Dec 2011
Posts: 1,938
gtrich94
Pro Tracker
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Pro Tracker
Joined: Dec 2011
Posts: 1,938 |
My opinion Tax rates went up, but withholding rates didn't go up as much to match. That starts you off in the hole. The standard deduction went up some, but not enough to match the cut that happened to the Interest/tax deduction you used to get for your house. Since the interest/tax deduction for your house got cut so much, it makes it a lot harder to itemize enough to get past the standard deduction. A lot of the COVID relief checks were basically pre-refunds and they got counted into income at the end of the year. However, they didn't have any taxes taken out on them when the check's were sent out. So you got stuck paying taxes on that money when you filed your tax return.
Thanks, Rich
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034850
04/16/24 07:20 PM
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Joined: Apr 2013
Posts: 8,508
freerange
THF Trophy Hunter
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THF Trophy Hunter
Joined: Apr 2013
Posts: 8,508 |
Also, folks in stock market likely had a good year so may have to pay on those gains.
At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR Keep your gratitude higher than your expectations. RWH
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034851
04/16/24 07:32 PM
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Joined: Jul 2006
Posts: 110,799
dogcatcher
THF Celebrity
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THF Celebrity
Joined: Jul 2006
Posts: 110,799 |
Our income went up, so less refund.
Combat Infantryman, the ultimate hunter where the prey shoots back. _____________"Illegitimus non carborundum est"_______________
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034855
04/16/24 07:49 PM
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Joined: Nov 2018
Posts: 786
Ktexas14
Tracker
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Tracker
Joined: Nov 2018
Posts: 786 |
I got fined $5 this year on my taxes because I didn't withhold ENOUGH and then they suggested that I submit four additional payments this year to avoid that. Hard pass. I guess I will pay you $5 for paying on time.
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034860
04/16/24 08:09 PM
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Joined: Nov 2006
Posts: 14,034
John2
THF Celebrity
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THF Celebrity
Joined: Nov 2006
Posts: 14,034 |
We each have a few dollars extra taken out every month,have for years and always get some back at tax time.
Not all those that wander are lost..
Back The Men in Blue that wears a badge
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034868
04/16/24 08:18 PM
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Joined: Dec 2011
Posts: 14,294
Ramsey
Pepe' Le Pew
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Pepe' Le Pew
Joined: Dec 2011
Posts: 14,294 |
Just wait till 2026 when the tax cut jobs act signed in 2017 expires and the tax rates go up and the standard deductions go down!!!
Big Beckett!!
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034908
04/16/24 10:37 PM
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Joined: Dec 2009
Posts: 9,851
The Dude Abides
THF Trophy Hunter
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THF Trophy Hunter
Joined: Dec 2009
Posts: 9,851 |
I don't want a refund. My wife (CPA) sets everything up where we owe ~ $400-500 every year. Uncle Sam is not getting a free loan from us.
I am still looking for the perfect apron, one with reinforced knee areas would be perfect.
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Re: Why are fewer people getting refunds?
[Re: gtrich94]
#9034917
04/16/24 10:53 PM
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Joined: Oct 2012
Posts: 25,321
Creekrunner
THF Celebrity
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Posts: 25,321 |
A lot of the COVID relief checks were basically pre-refunds and they got counted into income at the end of the year. However, they didn't have any taxes taken out on them when the check's were sent out. So you got stuck paying taxes on that money when you filed your tax return.
My mom got a Covid relief check. She'd been dead for 2 or 3 years. I took a picture for the accountant and "returned to sender."
...and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth. Gen. 1:28
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034920
04/16/24 10:58 PM
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Joined: Sep 2012
Posts: 16,008
Jimbo1
THF Celebrity
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THF Celebrity
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Posts: 16,008 |
Covid checks weren't last year.
FJB - Lets Go Brandon BBB - Bring Back Better Awake - Not Woke!
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034927
04/16/24 11:14 PM
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Joined: Sep 2013
Posts: 485
Uncle Zeek
Bird Dog
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Bird Dog
Joined: Sep 2013
Posts: 485 |
“We want to make sure that people are, in fact, filing,” said Bob Kerr, a former longtime IRS official, now a Washington-based tax practitioner. “And there are a whole bunch of people who do it because it pays to do it.”
^^^ this is a perfect example of Matrix blue pill/red pill crap.
The Federal government conditions wage earners into believing that they're getting something from the government when they get a tax refund. No - it's YOUR money that the Federal government got to hold and use for free. It doesn't "pay" to file your tax return - it's the only way to get your own money back in the first place. I'm speaking of net taxpayers, not those who get thousands in unearned "refundable tax credits" paid out to them (i.e. welfare).
If every wage earner had to mail in quarterly estimated income tax payments the way that self-employed people and companies have to, we'd see politicians being tarred and feathered by BOTH right-wing and left-wing people
Last edited by Uncle Zeek; 04/16/24 11:14 PM.
"Decency is not news; it is buried in the obituaries - but it is a force stronger than crime" ~ Robert A. Heinlein Artim Law Firm, PLLC Estate, probate & taxes 2250 Morriss Road, Suite 205, Flower Mound, Texas 75028 972-746-0758 work zac@artimlegal.com
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Re: Why are fewer people getting refunds?
[Re: Uncle Zeek]
#9034929
04/16/24 11:21 PM
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Joined: Feb 2013
Posts: 4,696
krmitchell
Extreme Tracker
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Extreme Tracker
Joined: Feb 2013
Posts: 4,696 |
“We want to make sure that people are, in fact, filing,” said Bob Kerr, a former longtime IRS official, now a Washington-based tax practitioner. “And there are a whole bunch of people who do it because it pays to do it.”
^^^ this is a perfect example of Matrix blue pill/red pill crap.
The Federal government conditions wage earners into believing that they're getting something from the government when they get a tax refund. No - it's YOUR money that the Federal government got to hold and use for free. It doesn't "pay" to file your tax return - it's the only way to get your own money back in the first place. I'm speaking of net taxpayers, not those who get thousands in unearned "refundable tax credits" paid out to them (i.e. welfare).
If every wage earner had to mail in quarterly estimated income tax payments the way that self-employed people and companies have to, we'd see politicians being tarred and feathered by BOTH right-wing and left-wing people Exactly, I never understood getting excited about a refund that: 1. You had to ask for or they keep. 2. Was an interest free loan to the government.
Last edited by krmitchell; 04/17/24 12:54 AM.
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034946
04/16/24 11:59 PM
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Joined: Oct 2008
Posts: 15,198
Tbar
OP
THF Celebrity
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OP
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Joined: Oct 2008
Posts: 15,198 |
If every wage earner had to mail in quarterly estimated income tax payments the way that self-employed people and companies have to, we'd see politicians being tarred and feathered by BOTH right-wing and left-wing people X 2
Make America Great Again
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Re: Why are fewer people getting refunds?
[Re: Tbar]
#9034953
04/17/24 12:16 AM
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Joined: Jul 2019
Posts: 14,254
Hudbone
THF Celebrity
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THF Celebrity
Joined: Jul 2019
Posts: 14,254 |
Used to pay quarterly and now have directed accountant to pay withholding within 72 hours. Never have had to pay additional. If refund is big, I don’t complain.
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