Turbo Tax vs. H&R Block - Fantasy Football Cafe 2014 Fantasy Football Cafe


Return to General Talk

Turbo Tax vs. H&R Block

Moderator: Football Moderators

Postby WickedSmaat » Wed Jan 25, 2006 10:45 am

knapplc wrote:
BrutallyHuge wrote:
Redskins Win wrote:
knapplc wrote:You know that's a bad thing, right?


It doesn't feel bad :-o


It means you gave the government a $4000 interest-free loan over the year.


As the Fonz would say, "Exactamundo."


I'll be doing my own taxes this year for the first time since I'm married now(my mom did them for me that past few years). But I guess I'm saying I don't get this, could you elaborate a little more to the tax unsavvy?
-Wicked
WickedSmaat
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe RankerMock(ing) DrafterEagle EyeWeb SupporterPick 3 Weekly WinnerMatchup Meltdown SurvivorCafe Blackjack Weekly Winner
Posts: 8165
Joined: 1 Oct 2005
Home Cafe: Football
Location: Singing songs of satisfaction toooooo the wooooooorld..... (the world).

Postby BrutallyHuge » Wed Jan 25, 2006 10:56 am

WickedSmaat wrote:I'll be doing my own taxes this year for the first time since I'm married now(my mom did them for me that past few years). But I guess I'm saying I don't get this, could you elaborate a little more to the tax unsavvy?


Well, if you are getting a big refund, you are doing something wrong. It means that you've paid the gov't too much money during the year and they're giving the excess back.

I'm not an expert at all, but part of it depends on what you filled out on your W-4 (what you fill out when you start a job). The W-4 tells your employer what to pay the gov't in federal taxes. If you fill out something incorrectly, you could pay more or less than you should.
BrutallyHuge
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe RankerEagle EyeCafe Blackjack Weekly WinnerLucky Ladders Weekly Winner
Posts: 5971
Joined: 21 Sep 2003
Home Cafe: Football
Location: Illadelph

Postby knapplc » Wed Jan 25, 2006 11:00 am

Let's say you earned $50K in 2005. You paid about $17K of that in taxes, but you could have paid only about $13K because of deductions or whatnot that you do claim when you file. So, you could have paid $4K less over the year had you managed your withholdings better, but you didn't.

What you've done is give the G that $4K to do with as they wish for about one year (it's actually spread over the year, but you get my point). What you COULD HAVE done with that money is buy a CD, invest it in stock, or simply put it in the bank to draw 1.5% interest or whatever, but instead you put that money in someone else's hands to do with as they would, but you didn't charge them anything to use it.

You further lose money because of inflation over the course of the year. If we had 5% inflation in 2005, that $4K you let the G use is actually worth $3,800 when you get it back (in 2006 dollars).

It's a losing proposition. Do your best with your withholdings to get a very small return at the end of the year. Even if you have to pay in a couple hundred dollars, over the long run you're making your money work better for you than by getting a sizeable return.
Image
How 'bout them Huskers!
knapplc
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe WriterCafe RankerGolden Eagle EyeCafe MusketeerCafe Blackjack Weekly Winner
Posts: 18961
Joined: 27 Dec 2004
Home Cafe: Football
Location: It's an L, not an I

Postby BrutallyHuge » Wed Jan 25, 2006 11:04 am

knapplc wrote:What you've done is give the G that $4K to do with as they wish for about one year


Wiretaps.
BrutallyHuge
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe RankerEagle EyeCafe Blackjack Weekly WinnerLucky Ladders Weekly Winner
Posts: 5971
Joined: 21 Sep 2003
Home Cafe: Football
Location: Illadelph

Postby knapplc » Wed Jan 25, 2006 11:07 am

BrutallyHuge wrote:
knapplc wrote:What you've done is give the G that $4K to do with as they wish for about one year


Wiretaps.

And free flights for torture-bound terrorists.
Image
How 'bout them Huskers!
knapplc
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe WriterCafe RankerGolden Eagle EyeCafe MusketeerCafe Blackjack Weekly Winner
Posts: 18961
Joined: 27 Dec 2004
Home Cafe: Football
Location: It's an L, not an I

Postby WickedSmaat » Wed Jan 25, 2006 11:14 am

I think I get it. But as far as claiming goes, what do you guys think is the best to go. 0,1, or 2? I'm sure it doesn't matter too much as I only work in retail right now but next year when I'm done with school I'll actually be out in the industry and making about 3 times as much as I did this year.
-Wicked
WickedSmaat
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe RankerMock(ing) DrafterEagle EyeWeb SupporterPick 3 Weekly WinnerMatchup Meltdown SurvivorCafe Blackjack Weekly Winner
Posts: 8165
Joined: 1 Oct 2005
Home Cafe: Football
Location: Singing songs of satisfaction toooooo the wooooooorld..... (the world).

Postby BrutallyHuge » Wed Jan 25, 2006 11:17 am

WickedSmaat wrote:I think I get it. But as far as claiming goes, what do you guys think is the best to go. 0,1, or 2? I'm sure it doesn't matter too much as I only work in retail right now but next year when I'm done with school I'll actually be out in the industry and making about 3 times as much as I did this year.


I dunno. There's too many variables.

I claim Single 2. I owe $106 this year.
BrutallyHuge
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe RankerEagle EyeCafe Blackjack Weekly WinnerLucky Ladders Weekly Winner
Posts: 5971
Joined: 21 Sep 2003
Home Cafe: Football
Location: Illadelph

Postby knapplc » Wed Jan 25, 2006 11:21 am

WickedSmaat wrote:I think I get it. But as far as claiming goes, what do you guys think is the best to go. 0,1, or 2? I'm sure it doesn't matter too much as I only work in retail right now but next year when I'm done with school I'll actually be out in the industry and making about 3 times as much as I did this year.

It's just you and your wife, right? No kids? No mortgage? At this point I'd say you should both claim one, then check out the adjustments at the end of this year to see where that got you.

You're going to be in a state of flux for the next year or two because of going out into the full-time workforce and any other variables (new baby, home, work write-offs, charitable donations, etc), but you need to watch what you're doing.

Also, start planning for retirement NOW. You're just entering the workforce out of college? Great! If your company offers 401K or other forms of personal retirement, contribute the maximum NOW before you get your lifestyle set on that whole salary. Ignore the existence of Social Security - you'll never see a dime of the money you contribute, so forget about it for your retirement.

Saving for retirement at a young age is the key to a good life in your later years. I started saving in my late twenties. I'll retire at 55 with AT LEAST a million dollars in investments - more if some of my funds perform better than expected. Would you rather keep working until 65 or 70, or retire when you're still young enough to enjoy it and travel, or get a simple, easy job you really enjoy to spend your "Golden Years?"
Image
How 'bout them Huskers!
knapplc
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe WriterCafe RankerGolden Eagle EyeCafe MusketeerCafe Blackjack Weekly Winner
Posts: 18961
Joined: 27 Dec 2004
Home Cafe: Football
Location: It's an L, not an I

Postby xted30 » Wed Jan 25, 2006 11:24 am

It really depends on what you're looking to do. I do single claiming 0. I don't mind giving the loan, and I don't miss the money up front. I get most of it back, especially in a down year for my pay (this year). To me, it's easier and ease and convenience is more important than me making a few bucks over the course of the year.
xted30
Defensive Assistant
Defensive Assistant

User avatar

Posts: 630
Joined: 29 Jul 2005
Home Cafe: Football
Location: Cincinnati

Postby WickedSmaat » Wed Jan 25, 2006 11:34 am

knapplc wrote:It's just you and your wife, right? No kids? No mortgage? At this point I'd say you should both claim one, then check out the adjustments at the end of this year to see where that got you.

You're going to be in a state of flux for the next year or two because of going out into the full-time workforce and any other variables (new baby, home, work write-offs, charitable donations, etc), but you need to watch what you're doing.


Yeah just me and the wife. I think I'm going to have to learn a lot about deducs and what I can write off. Would you think the best way to learn would be through a computer program, or by a book? Or just have someone like H&R do it?

And I would probably like to get the most out of my money even if it takes a little bit of work.
-Wicked
WickedSmaat
Hall of Fame Hero
Hall of Fame Hero

User avatar
Cafe RankerMock(ing) DrafterEagle EyeWeb SupporterPick 3 Weekly WinnerMatchup Meltdown SurvivorCafe Blackjack Weekly Winner
Posts: 8165
Joined: 1 Oct 2005
Home Cafe: Football
Location: Singing songs of satisfaction toooooo the wooooooorld..... (the world).

PreviousNext

Return to General Talk

Who is online

Users browsing this forum: No registered users and 1 guest

Forums Articles & Tips Start & Sit Sleepers Rankings Leagues


Get Ready...
The 2014 NFL season kicks off in 3:38 hours
(and 37 days)
2014 NFL Schedule


  • Fantasy Football
  • Article Submissions
  • Privacy Statement
  • Site Survey 
  • Contact