FAT Sales in March For retailers.

[Zebo]

Retailers said customers spent bigger tax refund checks on items such as electronics in March.

Why are people getting anything back? Not wise to give an intrest free loan for a year to the UST? I'd go to personel and adjust your deductions/allowances on W4 so you get no refund and earn/invest/spend that surplus early if you find yourself getting a refund. I currently claim 12 so they get nothing and neither do I the next year.

 

[alchemize]

Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

 

[xxxxxJohnGaltxxxxx]

 

[Vic]

Originally posted by: alchemize
Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

Only if your underpayment exceeds $1,000. IMO, I nailed my withholdings last year and only have to mail in a check for ~$400 on Thursday (so I will not have to pay any sort of penalty).

The average taxpayer is overpaying to the tune of $2k+ this year and stupidly thinks their refund money is some kind of free money from heaven...

 

[alchemize]

Originally posted by: Vic

Originally posted by: alchemize
Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

Only if your underpayment exceeds $1,000. IMO, I nailed my withholdings last year and only have to mail in a check for ~$400 on Thursday (so I will not have to pay any sort of penalty).

The average taxpayer is overpaying to the tune of $2k+ this year and stupidly thinks their refund money is some kind of free money from heaven...

Ah thanks...I definitely need to increase my withholding. I wonder what the penalty is percentage wise? probably more than makes it worthwhile to put 12 exemptions in

 

[Zebo]

Originally posted by: Vic

Originally posted by: alchemize
Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

Only if your underpayment exceeds $1,000. IMO, I nailed my withholdings last year and only have to mail in a check for ~$400 on Thursday (so I will not have to pay any sort of penalty).

The average taxpayer is overpaying to the tune of $2k+ this year and stupidly thinks their refund money is some kind of free money from heaven...

Intersting choice of words "nailed" it does take some practice, trial/error. Anyway would be nice for retailers had they had a more steady flow and I was quite surprised so many allowing intrest frees loans out that's all. Not to mention surprised by thier hand-to-mouth spending spree after the check comes.

 

[alchemize]

Originally posted by: Zebo

Originally posted by: Vic

Originally posted by: alchemize
Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

Only if your underpayment exceeds $1,000. IMO, I nailed my withholdings last year and only have to mail in a check for ~$400 on Thursday (so I will not have to pay any sort of penalty).

The average taxpayer is overpaying to the tune of $2k+ this year and stupidly thinks their refund money is some kind of free money from heaven...

Intersting choice of words "nailed" it does take some practice, trial/error. Anyway would be nice for retailers had they had a more steady flow and I was quite surprised so many allowing intrest frees loans out that's all. Not to mention surprised by thier hand-to-mouth spending spree after the check comes.

Zebo, you aren't saying the government witholds $0 from each of your paychecks, and then you pay it all at year end, are you?

 

[Vic]

Originally posted by: Zebo

Originally posted by: Vic

Originally posted by: alchemize
Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

Only if your underpayment exceeds $1,000. IMO, I nailed my withholdings last year and only have to mail in a check for ~$400 on Thursday (so I will not have to pay any sort of penalty).

The average taxpayer is overpaying to the tune of $2k+ this year and stupidly thinks their refund money is some kind of free money from heaven...

Intersting choice of words "nailed" it does take some practice, trial/error. Anyway would be nice for retailers had they had a more steady flow and I was quite surprised so many allowing intrest frees loans out that's all. Not to mention surprised by thier hand-to-mouth spending spree after the check comes.

Well, it's not made any easier by the fact that I have a straight commission sales job with a sometimes wildly fluctuating monthly income. It teaches you how to budget your money. A $2k tax refund wouldn't mean that much to me that I'd have to run out and blow it. I'm used to a monster paycheck one month and then jack the next (though I do try to keep it as consistent as possible).

 

[Zebo]

Originally posted by: alchemize

Originally posted by: Zebo

Originally posted by: Vic

Originally posted by: alchemize
Don't you pay an "underpayment" penalty for not withholding enough? Or is that only if you itemize?

Only if your underpayment exceeds $1,000. IMO, I nailed my withholdings last year and only have to mail in a check for ~$400 on Thursday (so I will not have to pay any sort of penalty).

The average taxpayer is overpaying to the tune of $2k+ this year and stupidly thinks their refund money is some kind of free money from heaven...

Intersting choice of words "nailed" it does take some practice, trial/error. Anyway would be nice for retailers had they had a more steady flow and I was quite surprised so many allowing intrest frees loans out that's all. Not to mention surprised by thier hand-to-mouth spending spree after the check comes.

Zebo, you aren't saying the government witholds $0 from each of your paychecks, and then you pay it all at year end, are you?

??? Would'nt that be nice. What I'm saying is it's wise to give them nothing in excess so you can use your money in the interm not them. If itemizers use the deductions and adjustments worksheet provided with the w-4 they should get reasonably close to thier liabity since they already know thier burden.

 

[HeroOfPellinor]

After my refund this year, I changes my withholdings to 9.