why is this allowed? i only made 70k last year

>>1799653
I still cant believe plebians don't know how tax refunds work, the bigger your refund, that means the more you fucked up when filing your taxes. Refund money is simply the extra money you gave to the government that you didn't owe them, then they give it back to you.

If you filed your taxes completely perfectly like some kind of autistic savant you would have a $0 refund every year

>>1799653

Just blame Obama

/thread

>>1799664
I owe $1200, I'm not getting $1200 back.

If you owe $1200 then you can adjust your withholding next year because you obviously didn't withhold enough this year.

Either way your tax bill will be the same.

Poors experience less sticker shock when they withhold extra during the year and get a refund for some reason.

>>1799670
Presumably that gives them a better NPV than leaving the money in their pocket for them to spend it on dumb shit.

>>1799653
Someone fucked up his w4

Srsly just put 0

>>1799653
How much tax did you have withheld?

>>1799653
>>1799664
Ik right! Fucking retartds! Basic finance principle: a dollar today is worth more then a dollar tomorrow

>>1799653
what did you do to reduce your tax liability?

>>1799653

Socialism baby.

You'll pay a hell of a lot less if you start a business.

>>1799653
donate more to charity

>>1799653
paying 2% income tax is pretty cool, that doesn't even pay the helicopters.

>>1799664
>If you filed your taxes completely perfectly like some kind of autistic savant you would have a $0 refund every year

Actually if you filed your taxes completely perfectly like some kind of autistic savant you would pay the largest amount possible before incurring underwithholding penalties and interest.

And if you had a guaranteed rate of return on capital higher than the accumulated penalties and interest, you'd withhold nothing and pay 100% of your tax obligation on April 15.

>>1803120
>2% income tax
Learn how withholding works, kid.

>>1803166
>And if you had a guaranteed rate of return on capital higher than the accumulated penalties and interest, you'd withhold nothing and pay 100% of your tax obligation on April 15.

what? that doesnt make sense

>owe $100
>guaranteed to grow to $200 by next year
>dont report it
>IRS finds out you owe another $100 at the end of the year
>charges 50% penalty on $100 for total of $150
>pay $150 and pocket $50

If you have a high deductible health insurance plan, just contribute to your own HSA account. You still get to keep the money, though, it gets held for medical stuff or, medicine until you retire then you can withdraw it easier.

By doing so you can claim your HSA contributions on your taxes and get a decent deduction on taxes owed.

My net would have been zero but i put 3350 into HSA and got nearly 700 back ton taxes

>>1803212
1. The capital gains taxes aren't owed until you sell the investment. Why would you assume its payable in the same taxable year that you bought it?

2. You vastly overestimate the penalties for underwithholding. 50% penalty? Are you 12?

I realize this stuff goes over the heads of most of you, but that doesn't give you license to post stupid comments.

>>1799653
>only 70k
>muh humble brags

>>1803221

i used simple numbers as an example, and you chose to attack that rather than defend your own post.

thanks for confirming that you are wrong, thats all i was saying.

>>1803239
>i used simple numbers as an example
No, you made up fake numbers in order to manufacturer a response that has no merit. There's a difference.

In reality, the penalty rate for underwithholding is in the 12-15% range (it entirely depends on when your income is earned throughout the year). While it's not alway reliably possible to beat that on a risk-adjusted basis, it's possible. So when your throw out a fake example of "50%" you make yourself look like an ass.

Own your fuckups, kid.

>>1803279

ok sure, my example used unrealistic numbers.

you are still wrong :^)

>>1803307
So you admit you made up the response, lied about the truth, and were presented by me with the real fact ... but you still think you're right?

Alt-truths aren't a thing, fag. You're a moron, and you're filtered.

>>1803311
mad

>>1803170
whatever not american