Tax Return

[Dmitriy@AUTOcouture]

Guys,

How long should it take on average to get a tax return from the IRS? I have recieved my W2 and I'm going to go to my accountant tomorrow and submit the stuff, I'm going to do the direct deposit option and just wanted to get an idea for how long the time period should be. This is my 5th year of filing taxes independintly, but every year the time period is off by a lot. For example last year, it took 2 months after I filed it w/my accountant. The year before, it took 3 weeks

[txusa03]

Hey, how r u sure you getting money back. What happen if you need to pay the irs?

Sounds like u expecting returns and sounds like ur in need of some dinero. 2 months is not bad. I dont keep track of how long my checks comes, I just happy I get some $ from irs.

[Dmitriy@AUTOcouture]

Originally Posted by txusa03

Hey, how r u sure you getting money back. What happen if you need to pay the irs?

Sounds like u expecting returns and sounds like ur in need of some dinero. 2 months is not bad. I dont keep track of how long my checks comes, I just happy I get some $ from irs.

Money is definetly not the issue, although extra $$ could never hurt . I'm just wondering why there is such a huge diffrence in time periods. Is it sort of like how many people are in front of you? For example like waiting for our cars to get on a ship in bremerhaven?

And I'm pretty sure that I'm getting money back, simply because I'm single, have no dependends, claim 0 on my W2, I'm 22 and in a high tax bracket, with a middle class salary (90K this year). Also because of the past 5 years I've been getting money back every single year, somewhere in the area of $2000.

So hopefully it stays the same way, although you maybe right maybe this is the year that I pay and don't get anything back.

-Dmitriy

[Carnage]

It depends on how your accountant files it. If he just mails it in, then it could take a month or two. If it's electronic filing, then it should take about 2-3 weeks. If you file deeper into the tax season then add a week or two to that.

Question, if your single and have no dependants, why are you using an accountant?

BTW, I'm an accountant.

[Dmitriy@AUTOcouture]

Originally Posted by matsarge

It depends on how your accountant files it. If he just mails it in, then it could take a month or two. If it's electronic filing, then it should take about 2-3 weeks. If you file deeper into the tax season then add a week or two to that.

Question, if your single and have no dependants, why are you using an accountant?

BTW, I'm an accountant.

good question... how should I do it? Thanks in advance.

[txusa03]

I too have been getting $ back from irs for past 4 years. Each year, i get more and more back. Yeah, can wait to do my tax and hopefully, I get more than 2 grants this year. I dont car for e-tax return. Regular mail and processing works for me. I dont do my own tax but have hire the same person to do my tax each year.

[Carnage]

Originally Posted by shpuntik

good question... how should I do it? Thanks in advance.

Just spend $30 and buy Turbo Tax or Taxcut. Turbo Tax is based on the IRS system and Taxcut is based on the system HR Block uses to file taxes.

Both have plenty of help files if you have questions and at the end you enter your checking account info (or where ever you want your refund deposited) and send it electronically to the IRS. Money will hit your account in 2-3 weeks.

You really don't need accountants for straight forward filings. You need us when the filing contains items which require us to think through the proper treatment to make sure you pay the least amount of tax possible.

That being said, you should always maximize your paycheck by taking only the amount of tax necessary to end the year owing the IRS nothing and receiving nothing back from them.

If you receive a $2,000 refund, basically you gave the government a $2,000 interest free loan for the year. If you would have gotten that throughout the year, that's ($2000/26) $77 more a paycheck you could have received and invested during the year.

[Dmitriy@AUTOcouture]

Originally Posted by matsarge

Just spend $30 and buy Turbo Tax or Taxcut. Turbo Tax is based on the IRS system and Taxcut is based on the system HR Block uses to file taxes.

Both have plenty of help files if you have questions and at the end you enter your checking account info (or where ever you want your refund deposited) and send it electronically to the IRS. Money will hit your account in 2-3 weeks.

You really don't need accountants for straight forward filings. You need us when the filing contains items which require us to think through the proper treatment to make sure you pay the least amount of tax possible.

That being said, you should always maximize your paycheck by taking only the amount of tax necessary to end the year owing the IRS nothing and receiving nothing back from them.

If you receive a $2,000 refund, basically you gave the government a $2,000 interest free loan for the year. If you would have gotten that throughout the year, that's ($2000/26) $77 more a paycheck you could have received and invested during the year.

hmm.. good idea, one question though... how do I maximize the paycheck? Show dependents?

[Carnage]

Originally Posted by shpuntik

hmm.. good idea, one question though... how do I maximize the paycheck? Show dependents?

Exactly. See how much tax you owed on the filing and adjust to hit that mark (+ or - $200). Then keep an eye on how much tax is being taken out and adjust as need based on tax changes, income changes, etc.

Since I use a software program, I will plug in the numbers throughout the year and see where I land, then adjust. This year I will owe the IRS about $300 but I'm getting a $300 state refund so it's a zero out for me.

[txusa03]

hmm, very interesting info. Maximize pay check? Let see, this year I put more money toward my 401K plan. That should lower my income (hence I pay less tax). Let see if your info is right and I should be getting less back from irs :mad: . However, my property tax went up along with other county tax (school and MUD taxes). My morgate interest fee went down a little. So not sure how all this will play out. Very eager to know.

[txusa03]

Originally Posted by matsarge

Exactly. See how much tax you owed on the filing and adjust to hit that mark (+ or - $200). Then keep an eye on how much tax is being taken out and adjust as need based on tax changes, income changes, etc.

Since I use a software program, I will plug in the numbers throughout the year and see where I land, then adjust. This year I will owe the IRS about $300 but I'm getting a $300 state refund so it's a zero out for me.

you are good...what program is this and can I use it or do I need to pay an account to help me plug in the numbers throughout the year?

[Carnage]

Originally Posted by txusa03

hmm, very interesting info. Maximize pay check? Let see, this year I put more money toward my 401K plan. That should lower my income (hence I pay less tax). Let see if your info is right and I should be getting less back from irs :mad: . However, my property tax went up along with other county tax (school and MUD taxes). My morgate interest fee went down a little. So not sure how all this will play out. Very eager to know.

Yes it will lower your taxable income and lower the tax you paid during the year but unless the change dropped you into a different tax bracket, it should have been figured at the same % rate.

Property taxes are deductible as are state income taxes paid, but state refunds are considered taxable income at the federal level just as federal refunds are taxable at the state level.

All things being equal from year to year (which they never are), if you decrease your taxable income but pay the same about of tax during the year, you would receive more money back then the year before since the tax you owe is based on your taxable income.

Example:

Taxable income - $80,000- paid in $5,000, owed $4,000 = $1,000 refund
Taxable income - $78,500- paid in $5,000, owed $ 3,750 = $1,250 refund

But it's never that easy. You are a prime person to use an accountant because your have a home, live in a state with an income tax, etc. Not only will they look at the current year but help you to plan ahead.

I would ask your accountant to build you a plan for the year based on receiving little to no refund during the year based on your personal situation. It should take them no time at all.

[Carnage]

Originally Posted by txusa03

you are good...what program is this and can I use it or do I need to pay an account to help me plug in the numbers throughout the year?

I use Tax Cut at home, but I also have access to Lacerte Tax which is what most tax accountants use and is made by the same company who makes Turbo Tax. It is costs about 100X what the normal off-the-shelf tax programs for consumers are.

The thing with tax programs is that a regular person and an accountant can use the same program and come up with completely different amounts because the accountant will have a better understanding of how and where to enter data and where to dig into the program to enter amounts in areas the program may not ask you questions.

[Dmitriy@AUTOcouture]

Originally Posted by matsarge

I use Tax Cut at home, but I also have access to Lacerte Tax which is what most tax accountants use and is made by the same company who makes Turbo Tax. It is costs about 100X what the normal off-the-shelf tax programs for consumers are.

The thing with tax programs is that a regular person and an accountant can use the same program and come up with completely different amounts because the accountant will have a better understanding of how and where to enter data and where to dig into the program to enter amounts in areas the program may not ask you questions.

matsarge, thanks so much for all your help . I will definetly consider it this year and probably will run the figures and change my W2 accordingly. Thanks again!! I hope you churn out a huge amount of coin during this tax season!!

-Dmitriy

[Carnage]

Originally Posted by shpuntik

matsarge, thanks so much for all your help . I will definetly consider it this year and probably will run the figures and change my W2 accordingly. Thanks again!! I hope you churn out a huge amount of coin during this tax season!!

-Dmitriy

You're welcome and thanks.
Good luck w/ everything.

[txusa03]

very cool info man, I will try to plot some numbers since I keep a history of my income and tax paid and see if I can get a pattern.