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[aandsdean]

RANT

We have a sizable tax refund coming, almost exactly the same amount as one month's net salary for me (I know, clean, adjust withholding, but not so easy in 2009 due to large changes in our financial situation, including converting our apparently unsellable former house temporarily [I hope] to a rental).  Professora Aands had very minimal income last year (just a bit of self-employment), and last year we owed, so I was being cautious.

So anyhow, I did our taxes early to see if we'd get a big refund, and yes, we would.  So I e-filed on 2/11 and soon the IRS website said, "Refund will be direct deposited on 2/23."

2/23 has, like the drifter in a blues song, done come and gone, and no $$$.  IRS website now says return is being processed, no date proposed for a refund.  Call and refer to code 1301.  So today I did call the IRS (good thing:  hold time was short), and they basically can't tell me anything except that the return has been sent for "error checking."  No proposed timeframe, no real clarity at all except that no one, apparently, can see to the bottom of the black hole where our large pile of cash has sunk.

Apparently, if you claimed credits this year, including first-time homebuyer (no) and energy credits (yes, almost the full $1,500), your return gets kicked for some sort of indefinite "error checking."

We could REALLY use the money.  It's our money.  Give it back, dammit!

I'm no fan of anti-government screeds, etc., but I'm tempted to pen my own just now.

So, ok, here it is:  "taxation is theft."  Or something.

[always_seeking]

Well, look at it this way. At least you know the refund will be sent - eventually.

I paid taxes to a city that I no longer live in ($249.00) and I was just told that the refund has been denied because they don't have records of past tax returns from me. They want me to dig up the last six years of tax returns and send them in. The funny thing is... the city representative told me she couldn't put anything in writing. I've never heard of such. Sounds like a scam to me.

[fizmath]

By its very nature income tax has to be a mind boggling bureaucratic nightmare.  You never have these headaches with excise, sales, property, FICA taxes and tarrifs.  Income tax costs our economy hundreds of billions of dollars in accounting and legal expenses.

[someidiot]

Income tax costs our economy hundreds of billions of dollars in accounting and legal expenses.

Some argue that stimulates the economy by providing jobs for lawyers and accountants.

[clean]

I know, clean, adjust withholding

Experience is the best teacher.  I doubt that you will ever, EVER again allow yourself to lend the Gubment a full month's pay.  

For what it is worth, there is a provision that they will have to pay YOU interest if they dont pay on time.  Im not sure what that time is, and you may have to apply for it, but at least it may make you feel better to know that the longer they take, the more you make.

[parispundit]

  You never have these headaches with excise, sales, property, FICA taxes and tarrifs.  Income tax costs our economy hundreds of billions of dollars in accounting and legal expenses.

Oh yeah? Property taxes can be a major pain. I gave up trying to stop paying taxes on my neighbor's fence after several years of trying to get it removed from my bill.

And if you think VAT isn't a pain, try and run a business in a country with VAT. The paperwork is quite as extensive as with income tax, it is just done by different people.

ALL taxes are bad. They are also necessary. Pity some people have a hard time recognizing that by attacking taxation as such, they are making people feel that tax evasion is morally justifiable, with disastrous results.

[prytania3]

The IRS sucks. I have agreed to pay them the balance of what I owe by April 27.

I can only do this if I have a decent refund. I did let the gubment withhold a lot this year.

[madhatter]

My sympathies! I'm getting a small refund, I think, though I have little confidence that I actually did my taxes correctly. I thought 2008 was complicated, with the inclusion of unemployment compensation, self-employment tax, and calculating home office expenses. For 2009, I had to fill out state tax forms for three states, in one of which I was a nonresident employee.

I'm either getting $600 back or going to jail.

[fizmath]

Income tax costs our economy hundreds of billions of dollars in accounting and legal expenses.

Some argue that stimulates the economy by providing jobs for lawyers and accountants.

http://en.wikipedia.org/wiki/Parable_of_the_broken_window

Parispundit,

you are right.  Scratch property tax from my list along with VAT.  I pay bills to the grocer, post office, utilities, etc.  None of these bills require 20,000 pages of rules.  It should be no different with the federal government.  Technically we are all criminals since no one can be sure if they pay the correct amount.  IRS agents are taught that they can find an error in anyone's return.

[jonesey]

I'm amazed that a Dean makes little enough to get a refund...

[canadatourismguy]

Anyways back on topic...I find the USA system quite easy compared to the Canadian one.  I also find that the computer programs out there are pretty good at finding most standard deductions.  I had an accountant do it two years ago and decided to do it myself last year and the net return was the same.

I wish the USA would add a 2% VAT.  In my state they would rather let those with disabilities starve than add a couple cents to a tobacco tax.  Heck, if it was used to fund education and health care the country would be in much better shape.

CTG

[aandsdean]

I'm amazed that a Dean makes little enough to get a refund...

It's not how much you make, it's how you withhold.

We paid about $26,000 in federal taxes net of the refund.

[jonesey]

I'm amazed that a Dean makes little enough to get a refund...

It's not how much you make, it's how you withhold.

We paid about $26,000 in federal taxes net of the refund.

Too true.  My wife and I declare nothing, have a house, and we're still paying quite a bit this year.  Taxes suck.

[tee_bee]

My old accountant told me that, on April 15, everyone is a Republican. In the anti-tax sense, of course. I doubt I will get a refund this year, but I pray that I don't owe any either.

[clean]

My old accountant told me that, on April 15, everyone is a Republican. In the anti-tax sense, of course. I doubt I will get a refund this year, but I pray that I don't owe any either.

We paid about $26,000 in federal taxes net of the refund.

IF you want tax reform, stop mandatory withholding.  Let people actually WRITE the check for $26000. 

No need to get a refund, they wont have collected the money in the first place. 

(and implement the death penalty for tax dodgers... Change the saying to,
"nothing is certain except Death OR Taxes".)