Compare Tax Refunds

[S T]

The every year comparison Taxpayer Refunds - haven't had one to deal with for a while

TP Why is my refund less than my co-workers, he makes the same wages I do

TP You are not giving me all of the tax benefits that I Deserve - I should go somewhere else, they will get me a larger refund

TP My refund should be larger, my friends have so much less than I do (whatever that means) and they have larger refunds.

In this case scenario $ 3,500 refund (friends claimed they received) and T/p only has $1,800 refund (of course on the husband's W-2 he all but went exempt on withholding, $445 on $ 13,000 of wages

No one understands apples and oranges and a mixed fruit bowl

Grr! Times are tough out there for this 2010 tax filing season

And this is only February 19, 2011

Just thought I would share,

Sandy

[geekgirldany]

Had that a few times also. It is hard for them to understand. The friend makes less but they may also have five children. I also like it when they start making really well at their job, gets more then they would through EIC, but still thinks they should get the big refund at end of year.

I also had someone asked me last year if I was "sure" I was getting them all the tax breaks they deserve. I told them if they are doubt my ability to prepare their return then they should go to someone else. I am not putting up with that stuff anymore.

[Jesse]

Even w/out EIC the child tax credit can make a big difference. I tell them it's nice to have kids at tax time, but then you have the rest of the year that you have to feed, clothe, and support them.


Does it help? Nah, same person finds a new friend every year - new friend doesn't have kids - so I try to explain that you can make the same wage and your taking home the majority of your paycheck where as your "friend" is taking home $100 less because he's letting Uncle Sam hold it like a Christmas club savings account and he doesn't get his check until he files the tax return.

Does it help - Nah!

New one this year - self employed plumbing & heating contractor purchased central air for his home. He wants to take the 30% credit on the same retail price he would charge an actual customer. I tell him only 30% of what you actually spent - oh by the way, you can't write off the cost of the unit you kept for your own personal use. His comment - they'll screw you any which way they can!

Now I see it as he should be happy he received a good deal on the unit, lucky enough to be able to install it himself and a 30% credit on his cost to boot. Oh well!

Yes thanks for letting me vent!!!!!

[oceanlovin'ea]

another scenario

Maybe spouse is self employed and has a schedule C. SE tax can eat up some of the refund.
My daughter has about $1200 of SE tax. It ate up a chunk of their refund.

Linda Ea

[BHoffman]

"But everyone else writes off their TV cable and internet at work! Why can't I?"

Because you work in an office that provides you with internet and you are never required to work from home. Because watching TV is very rarely work related. And that expensive suit you bought specifically for that client meeting is not deductible and neither is dry cleaning.

And especially because you walked away from your mortgage debt because "everyone else did it" and moved into a rental so now you can't itemize. And your income is over $100k. So you owe a few thousand instead of receiving the few thousand dollar refund you are used to getting. The screams will be deafening.

[taxxcpa]

Look on the bright side

Last year the client had less income, less withholding, no children. This year more exemptions, more withholding, child credit, and you get him a much bigger refund than last year's. You are a genius!

I just did a 2009 & 2010 return with that situation. I must have got a lot smarter after doing the 2009 return which was only $ 500 refund and the 2010 refund was $ 4000.

[BP.]

Yes, yes, yes, to all of you on all of this! If we are lucky enough to get referrals, which I am, then those same very kind people who refer their friends, coworkers and neighbors also, surprisingly, share the details of their refunds and prep fees too! If the new person doesn't get as nice a refund, they are puzzled. And I've found myself checking the referer's prep fee to make sure the new person's fee is somewhat in line, rather than getting the fee from the ceiling tile adjacent to the one where people expect their donations & mileage to be revealed to them!

Yes, Linda, talk about SE - Client, wages about $150,000, takes side job in their field and brings two 1099's totalling $20K. They ask, what are we getting back about $500 this year? I say no, you owe $4K! They are in a panic! Hard to feel sorry . . .

[DTS]

Sandy,

I get this a few times and I just tell my client to get me the return of the "friend" and I'll be able to tell them "why" in about 30 seconds. This nips that conversation in the bud quickly.

[ChEAr$]

One answer I always use is "Because you are smarter than he is."

Huh?

Because you, upon my advice, have correctly tailored your withholding to projected tax liability, although in simpler language of course.

[Peachie]

My general response is this Sandy--

Bring the return so I can compare your return to hs/her return and we''ll go from there. After all, I only have your word the returns are identical. I leave no stone unturned when I prepare your return and you have me at a disadvantage because I can't see what I'm being asked to comment on. Is this fair to me? They never have an answer.

Peachie

[PIGLEE]

My Preparer, Glenda (who worked for ME) did about 3 members of one family all with EIC, all very happy. Then another family member came in and I did their return. They owed, self employed, no EIC. A week went by and one of persons that Glenda had done, came in to see Glenda and brought in the people that I had done the tax return for. They wanted to know why I had done such a bad job. Glenda had fun telling them what the difference was. She also said she felt very weird checking the "Bosses Work". We all had a real good laugh, every once in a while I would ask her, "Glenda would you check this return over for me". We still think about it every once in a while, and laugh again.

[geekgirldany]

I've use the "bring the friend's return by" also. Told one to bring his friend I would sit down with both of them to compare the difference in returns. As long as friend signs off on a privacy statement that I can talk to client about it. They do clam up then.

What is worse is when someone comes to you for 8 years leaves one year and then comes back and says "I switched last year, they could not get me back anymore money than you always did". Thanks for the compliment... by the way I've went up on my fees

[erchess]

Can Clients Come Back?

One person on this board has a flat policy that if you leave him you cannot come back no matter what the reason was.

I will take them back if they were a good client before they left but I do consider whether I would prefer that they stay away. I do work at cheaper rates for long time clients than new ones and one returning after leaving me is definitely new.

[taxxcpa]

Returning ex-clients

One person on this board has a flat policy that if you leave him you cannot come back no matter what the reason was.

I will take them back if they were a good client before they left but I do consider whether I would prefer that they stay away. I do work at cheaper rates for long time clients than new ones and one returning after leaving me is definitely new.

I generally follow that policy, but sometimes there is an acceptable reason. If someone moves out of state, then moves back, I will take them back. If someone switches frequently, they are not the kind of clients I want.

[DaveO]

I will tell them, "If all you know about your tax return is the amount of the refund then you know next to nothing about your taxes, which is exactly the same thing you know about your friends tax return."

I like the idea of asking for the friends return, I'll use that.