I just finished filing my taxes for the first time since getting a steady salary. I’m filing single with the standard deduction, no state taxes since I’m in Florida, and I contribute to my 401k. I also make monthly payments on my student loans.
This year, I owe $28 in federal taxes. Is this normal? Does it mean my company is getting my withholdings right? I used to get small refunds when I worked part-time, so this feels a little different.
Beckett said: @MegWHITGAL
It’s wild how some people are excited about big refunds. They’re basically letting the government hold their money interest-free all year.
One time I owed $5,000 because my old company messed up payroll taxes. It was awful, but now I always withhold a bit extra just to be safe.
@Emerson
I get that, but some folks overdo it. I’ve seen people get $6,000 refunds on small incomes. I’d rather keep that money and put it to work during the year.
Beckett said: @Emerson
I get that, but some folks overdo it. I’ve seen people get $6,000 refunds on small incomes. I’d rather keep that money and put it to work during the year.
Wow, $6,000? I thought only people with a lot of kids got refunds like that.
Beckett said: @Emerson
I get that, but some folks overdo it. I’ve seen people get $6,000 refunds on small incomes. I’d rather keep that money and put it to work during the year.
That’s usually from refundable credits. Someone with two kids and a $30k income could easily get over $6k back.
Beckett said: @MegWHITGAL
It’s wild how some people are excited about big refunds. They’re basically letting the government hold their money interest-free all year.
I hear you, but for me, getting a bigger refund forces me to save. If I get an extra $40 a week, I’ll probably just spend it.