Are tax returns a scam

Discussion in 'Off Topic Forum' started by pc747, Mar 17, 2018.

  1. PereDroid

    PereDroid DF News Team Reporter

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    That's the thing Bout setting the exemptions up: there's simply no way to make it perfect. If you claim 1, you get a refund. If you claim zero, you pay. There's just no way to claim something and niether get paid, nor owe. So of the 2 choices...I'd prefer to get money back...not pay.

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  2. Sajo

    Sajo Diamond Member

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    That's kind of how I feel. I get a small refund each year, nothing major but something back. If I claim less exemptions I might end up owing, which I don't want. If I claim more exemptions I'm giving Uncle Sam too much each month, and end up with more refund. I'm at the point where I'm comfortable with my W-2 setup and the minor refund I get.

    What I do feel is a scam is all of the "quick loan", "quick cash", and car dealers, furniture stores, etc advertising all day everyday to come on in and use your return to buy something new....we will file for you..blah, blah, blah. My daughter almost fell for that and I told her to wait for the refund (not much, but enough to help a young kid get something they need), wait for it to deposit into your account and then think & decide how best to use it.

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  3. Jonny Kansas

    Jonny Kansas Administrator
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    Solid advice. What irks me is, it never fails. I file as soon as we have everything together & then a week or so later, my credit union, bank, or some other institution that I generally trust offers me a deal on Turbo Tax or H & R Block services that I've already paid for from my federal return.

    Send me that email at the end of January when I start collecting what I need to file, dang it!

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  4. me just sayin

    me just sayin Diamond Member

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    you get tax refunds so much faster these days that it is not worth getting those loans.
     
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  5. Sajo

    Sajo Diamond Member

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    It's funny you mention that Jonny, a week after I filed with a well known tax website my bank sends me an email for a %15 discount with them. Little late folks, LOL.

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  6. Jonny Kansas

    Jonny Kansas Administrator
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    Federal, yeah. We've already spent that/put a chunk in savings. Still waiting on the state to deposit.

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  7. Jonny Kansas

    Jonny Kansas Administrator
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    Happens to me every year the past few years. Sometimes it's the site I use, sometimes it's another reputable service.

    I thought about trying Credit Karma's supposed ACRUALLY free service this year, but decided against it.

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  8. me just sayin

    me just sayin Diamond Member

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    forgot about state, they have gotten slow. took almost a month to get mine and it used to be less than a week. claim it was to prevent identity thief. IMO, if it is going the same account as in past years, and you filed the same way as in past years, there should be no reason to doubt.
     
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  9. kodiak799

    kodiak799 Gold Member

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    And you pay a penalty if you end up owing more than like $500. But if you have investment returns or some other source of income, you can also make a quarterly prepayment to avoid penalties for underpaying.
     
  10. PereDroid

    PereDroid DF News Team Reporter

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    I paid over 2 grand last year. There was no extra penalty.

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  11. JandN2639

    JandN2639 Active Member

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    Actually, that’s not quite correct. You owe a penalty if you pay estimated taxes, underpaid, *and* didn’t pay at least as much as the year before’s total tax due.


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  12. JandN2639

    JandN2639 Active Member

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    Some things to remember:

    1. The IRS is exempt from due process.

    2. This means its staff are not accountable for delays, wrong information, etc.

    3. Even if the IRS’ unexplained error leads to someone’s underpayment, that person or organization owes not only the amount due, but daily interest on that amount. Good luck trying to get the interest back.


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