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Originally Posted by Detector  It seems to be a "redistributing the wealth" program. We are rewarding people for being poor, and very rich, out of the pockets of middle America.. |
Where have you been dude? It's been that way for an awfully long time.
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Originally Posted by Detector The government says we have record refunds this year but didn't mention some record pay-ins by Mr./Mr's. average American. I've seen people getting refunds of over $6,000 and others paying in as much as $9,000.. |
What people get in refunds or end up paying is not so much a function of the tax code itself but a function of how people paid during the year. You are required to pay the lessor of 95% of your total tax bill or an amount equal to your previous year's total federal income tax bill prior to this year's due date (4/17). If Jane Doe has to write Uncle Sam a $2,000 check on 4/17, it's not because the code's out of whack, it's because Ms. Doe's interim payments (with holding and quarterly estimated payments) were $2,000 less than her total bill.
Everyone's situation is different but if things are stable in the Detector household year to year in terms of salaries and deductible expenses, then your tax preparer or any of the tax prep softwares (turbo tax, taxcut) can help someone forecast their next year's tax bill and help them plan for it.
Hint-the biggest cause for this situation in the *average* American taxpayer's family is large investment returns or a multiple income family where there is a large gap between the pay of one spouse against the other.