Poll:2019 Federal Tax refund - more or less? poll

[COcheesehead]

I got more back, but I was paranoid of under paying so I added to my estimated payments.
Its not free money, its just getting your money back after sitting in Uncle Sam's piggy bank for a few months.

 

[SomedaySoon]

Refund was large, but I can pay my ACA HI bill with a credit card. I decreased my Advanced PTC and paid more out of pocket via CC, as I was playing the credit card bonus game last year ("Spend $3000 in 3 months for 100,000 points") on multiple credit cards. Just did it the last 5 months of the year so my "loan" to the government was small overall. But I got over 325,000 hotel pts for Hilton,Marriott, and IHG.


Of course I paid the full CC bill each month...

 

[scrabbler1]

I got more back, but I was paranoid of under paying so I added to my estimated payments.
Its not free money, its just getting your money back after sitting in Uncle Sam's piggy bank for a few months.

I may end up getting a refund a year from now when I file my 2019 tax return even though I will have no taxes withheld and will make no estimated tax payments. Because I went over the ACA subsidy cliff in both 2017 and 2018, my state's exchange (NY Marketplace) declined to give me any advance PTC (they use my 2017 return, the latest one on record). If I somehow avoid going over the cliff in 2019, the ACA subsidy I will end up getting will be much more than my total tax liability, entitling me to a refund in April of 2020.

And I won't really know if I am going over that cliff again until at least November, when the year-end cap gain distribution estimates come out. So, it isn't like I could convince the folks at the NY Marketplace to starting giving me any meaningful subsidies at the very end of this year.

If I avoid going over the cliff this year, maybe I can convince the NY Marketplace to give me an advance PTC in 2020 even though they would be using my over-the-cliff 2018 return to determine my (in)eligibility for an advance PTC.

 

[Magoo30]

No refund. I always do an estimated calculation of what I expect my taxes to be and make adjustments to my withdrawals so that I break as close to even as I can. I don't like giving the government an interest free loan.

 

[Shabby]

The size of your return isn't as important as whether your effective tax rate went up or down. Now that would be an interesting poll.

 

[garyt]

The vast majority of people out there are actually better off getting a refund rather than owing taxes. It's a forced savings - savings that they wouldn't do otherwise. These people don't invest in the stock market. They don't even make the 2% they could get in a MM fund. They spend what shows up in their paychecks. Even if they didn't let the government have a "interest free loan" the amount of money they'd save by investing their $2,000 refund is a couple of bucks a month. Big deal. If they end up owing taxes at tax time, they don't have the money to pay it. I'm a strong believer that getting a tax refund is much better for most people - but probably not people on this board.

Agree

 

[garyt]

Made basically the same as last year. but I did convert $10K to a Roth so expected to pay. 2017 got a refund of $38 this year got $545, considering the extra $10K income from the Roth conversion, I'm very happy. Now I wish I had converted more.

 

[rk911]

2017 effective tax rate = 18%
2018 effective tax rate = 15%
total tax $ paid dropped 25%

 

[robnplunder]

I had unexpectedly larger capital distribution from one of my mutual funds. That reduced my refund quite a bit.





My intent of starting this thread isn't about tax rate change. It's about having more or less money after completing the tax return. Are you going to Vegas or eating Ramen, are you happy or pissed, ....

 

[W2R]

I had unexpectedly larger capital distribution from one of my mutual funds. That reduced my refund quite a bit.

My intent of starting this thread isn't about tax rate change. It's about having more or less money after completing the tax return. Are you going to Vegas or eating Ramen, are you happy or pissed, ....

Well, I had an unexpectedly large capital gains distribution too, just like you did, and not only that, but also I started my larger "age 70" Social Security, plus started RMD's. Unlike last year I didn't have enough deductions so I had to use the standard deduction.

So, I got hit hard and much to my shock and consternation, I ended up paying instead of getting a refund. That felt simply awful. I don't like things messing with my nice, predictable retired life like this.

But I'll fool them! This year, my estimated tax payments are going to be much, much larger and with any luck, next year they will have to send me a refund, instead of the reverse. I know, I know, that is what we are expected and required to do but I like thinking of it as revenge.

As for going to Vegas or eating Ramen, once I got over being upset and furious I realized that it wasn't that bad, I was over-reacting, I have plenty to live on, and I don't need to cut back.

 

[robnplunder]

But I'll fool them! This year, my estimated tax payments are going to be much, much larger and with any luck, next year they will have to send me a refund, instead of the reverse. I know, I know, that is what we are expected and required to do but I like thinking of it as revenge.

As for going to Vegas or eating Ramen, once I got over being upset and furious I realized that it wasn't that bad, I was over-reacting, I have plenty to live on, and I don't need to cut back.

I am thinking about installing solar panel this year just to make sure I will get a refund next year. I am dead set on going to the sin city or its equivalent. The year after that, I will buy an EV to keep the refund streak going.

 

[audreyh1]

Geez! What about the rest of us who avoid a refund like the plague?

I would much rather owe!

Also did not vote.

 

[Timeisprecious]

Emphatically no! Went from a refund of about $1,500 to paying $679 this year. Made more, gave more last year, and one year closer to retirement (countdown just over 11 mo. now)

 

[Amethyst]

+100. We always end up paying.

Geez! What about the rest of us who avoid a refund like the plague?

I would much rather owe!

Also did not vote.

 

[Dash man]

We’re getting a large refund this year. DW had some restricted stock vest in November and had big chunk withheld for taxes. We’re getting most of it back because of estimated tax payments earlier in the year and a lot of deductions for medical and charitable contribution. The loan to the government was only a few months, so no big loss.

 

[Cobra9777]

Can't answer the poll. I don't "do" refunds. I pay the IRS the least amount possible at the last possible moment, while carefully avoiding penalties for under-withholding. My planning instincts run deep.

 

[joylesshusband]

I find it strange and embarrassing that this poll got any respondents.

After frequenting this forum for ~5 years, I was surprised to realize that anyone posting here would accept having "tax refund".
Yet, thus far there are 56 votes...

 

[ABQ2015]

I interpreted the poll to be asking if you paid less taxes this year than last year assuming the same gross income but perhaps not being able to itemize. My such taxes were $2K less hence a "Refund". I actually had to send the IRS a few hundred dollars.

I had no real need for the tax cut because I have ample retirement income and did not see the purpose for the Tax Cut Act. But with a high income for most of my working career combined with being a single filer, I've paid lots of taxes. So the $2K savings was a nice surprise. My plans are to use part of it for charitable donations and it will pay for my extra IRMAA Medicare Part B premiums.

 

[T-Minus]

Effective rate was reduced despite an increase in AGI

Same here!

 

[gayl]

Paid. Usually get a refund

 

[jimbee]

Geez! What about the rest of us who avoid a refund like the plague?

I would much rather owe!

Also did not vote.

+100. We always end up paying.

Me three. I prefer to avoid refunds, it means too much was withheld.

 

[PatrickA5]

I find it strange and embarrassing that this poll got any respondents.

After frequenting this forum for ~5 years, I was surprised to realize that anyone posting here would accept having "tax refund".
Yet, thus far there are 56 votes...

Not sure why you would be embarrassed that the poll had responses.

 

[RobbieB]

Haven't filed yet, all 1099's won't be in until mid March.

 

[target2019]

I went about $300-500 over in estimated payments. I'll apply refund to 2019 estimated.

 

[SteveNU]

Since I was withdrawing from a 401k with a mandatory 20% witholding I got back a sizeable refund. However I rolled it over into an IRA so I'll have better control of my witholding this year and will shoot for no refund.