Question as to why someone is getting back more on their tax return.?

Question

Tax-> why someone is getting back more than I am.?
All right, let me try to explain this.

I was speaking with a few of my friends at work, and some at school. We're all being claimed as dependents, and it seems that most of them are getting back anywhere from 90-200 dollars.

I just finished my taxes using an EZ form and it says I'm only getting back $25.

I made about $5,000 this year, and one of my friends only made just over $2,000. So why is it, she's recieving back $90 while I, am only recieving $25?

I hope someone can clarify this for me..

Answer 1

What someone gets back as a refund has NOTHING to do with YOUR tax return or how much of a refund you get or have to pay. Every taxpayer's tax situation is unique, so don't compare what someone else's refund is with yours. It's a meaningless comparison -- like combat boots and brassieres are.



You get a refund if you OVERPAY your taxes. It's just like getting change at the store. Give the clerk a $20 for $16 worth of stuff and you get $4 change. Give her a $50 and you get $34 change.



Someone who got a larger refund than you did just made a larger interest-free loan to the government for up to 16 months. On the other hand, you KEPT your money and didn't loan it to the government. That's actually SMART money management on your part. The object is NOT to get the biggest refund -- that's just DUMB -- it's to break even at tax time and owe nothing or get nothing.

Answer 2

I'm not sure you understand just what a refund is. Through the year you might have money withheld from your paycheck for federal income tax. At the end of the year, you prepare a form called a tax return to calculate how much tax you owe total for the year, and compare that to what was withheld. If you had more withheld than your total tax, you get the extra back as a refund. If you didn't have enough withheld, you have to pay the rest rather than getting a refund.



A refund isn't some sort of bonus the government gives you for working. It's like if you went to WalMart and bought $15 worth of items, but gave the cashier a $20 bill. You'd get a "refund" of $5, but it's not them giving you something, it's just getting your own money back. If somebody else gave them a $50 bill to purchase the same items, their "refund" (change) would be $35 - that doesn't mean they got a better amount from Walmart.

Answer 3

It is hard to stand around the water cooler and try to compare yourself with others regarding income taxes. You may not have all the information right in front of you. It all begins with the W4 form when you start working. Did you friend put some money in an IRA and receive the saver's credit? Is your friend getting more money withheld every payday and receives a bigger refund than you. Several factors are consider when doing taxes and a lot of people leave out things in their group wide discussions at the office.

Answer 4

She probably had more withheld from her paycheck. You should compare what you put on your W-4s. You may have put Single-2 and she put Single-0.



What you get back depends on two things - how much tax you owe and how much you paid in. Your refund or amount due is the difference between these two numbers...

Answer 5

there are many variable to deal with.



but maybe the best way for you to be convinced is to do a side by side comparison of your two tax returns....



as was implied before....you may have filed out your w4 differently and this will cause your refunds to be different even if you two have all other variables exactly the same.

Answer 6

the more money you make it will put you in a higher tax level and the more you will owe back have your employer hod out more on your check each week