2013 will be horrible for everyone. A flat tax with no deductions would alleviate all the uncertainty and confusion.

I was really worried about it. I went back to work this year after many, many years at home. I was concerned my income would push us into a higher bracket. It did, but we are still getting back about $700 from the Federal return. Big relief.

Yup; freaked out bc DH & I received a very large year end bonus that was entirely unexpected. I'm pretty sure they bumped us up into a higher bracket and possibly AMT

I dont get this, because if I'm doing my DC and federal taxes at the same time, why wouldnt the amount be correct in the first place? It's not like it would be an estimate on the federal return.

Anonymous wrote:

Anonymous wrote:I prefer getting a refund as I'm far more responsible with a lump sum than receiving the extra across the year. The exception is DC "State" tax...I hate that the previous years tax refund is treated as income so I am hoping to break even there.

That is not legal as far as I know. Isn't that double taxation?

It's not. If you paid $10K of state income tax in 2011, deducted that amount from your 2011 income for federal tax purposes and then it turned out that you only owed the state 9K, you receive 1K back. And then since you deducted 10K in 2011, you need to report this 1K refund as additional income in 2012. You overdeducted in 2011, so you are just adding it back in 2012.

I'm a CPA and have an idea that I need someone's thoughts on. If you prefer to prepare taxes at home, but feel anxious and not so well informed on the tax laws, would you ever consider inviting a CPA to your home to assist you with preparation of your return and answer all of your questions right there, at your home? I've never heard about such services being provided and don't know whether they could potentially be in demand.

No, but I'm already freaked out about my 2013 taxes.

Anonymous wrote:I prefer getting a refund as I'm far more responsible with a lump sum than receiving the extra across the year. The exception is DC "State" tax...I hate that the previous years tax refund is treated as income so I am hoping to break even there.

That is not legal as far as I know. Isn't that double taxation?

Anonymous wrote:I prefer getting a refund as I'm far more responsible with a lump sum than receiving the extra across the year. The exception is DC "State" tax...I hate that the previous years tax refund is treated as income so I am hoping to break even there.

It's only treated as income because you were able to deduct your DC taxes paid the prior year. Yes it's easier if its close to 0 each year, but you aren't being taxed twice on a refund.

I prefer getting a refund as I'm far more responsible with a lump sum than receiving the extra across the year. The exception is DC "State" tax...I hate that the previous years tax refund is treated as income so I am hoping to break even there.

We do a couple of check ins during the year because we pay estimated taxes and we need to make sure we aren't under withholding. We are in good shape this year and whatever we overpaid will go towards our first quarter estimated payment. I find its useful to do a quick estimate during the year to stay on top of things. Might be worth considering.

Anonymous wrote:

Anonymous wrote:We owe 3,500 federal.

Fuck you Uncle Sam. I actually said " if only I hadn't gotten that raise this year"

Why? More money so always good, even of you have to pay a portion of it in taxes.

That is an f'ed up response. Maybe in the future you'll be luckier and not get a raise, like much of the rest of the country.

Anonymous wrote:We owe 3,500 federal.

Fuck you Uncle Sam. I actually said " if only I hadn't gotten that raise this year"

Why? More money so always good, even of you have to pay a portion of it in taxes.

Yes - we owe $3K this year. Usually we get back 3-6K so we were way off.

Anonymous wrote:

Anonymous wrote:I wish I could do mine - don't have my dividend and interest statements yet. I did my estimated return (I do a mockup every year for planning purposes) and it says I'm due about $114 back from the Feds. While I guess I should feel good about finally getting my withholdings right, I'm going to miss the nice little chunk of change I usually get back. ($1-$2K.) Sigh.

See, I feel totally opposite. I was completely pissed last year when we were owed a refund of nearly $6k. That meant our withholding was WAY off. This year, we are due a refund of only $100 or so and I was very pleased. We got the most of our money over the course of the year, which is way more helpful to me than a $6k chunk of a refund that we invariably end up blowing because my DH treats it like free money.

I hate large refunds like that too. I just think what I could be doing with that money during the year.

a large refund is an interest free loan to the government.... goal is to break even like 7:59