<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Over $6K
 

Over $6K

January 22nd, 2012 at 09:30 am

Our tax refunds from federal and state will amount to over $6,000! We have never had such a large refund. I really try to keep things as close to zero as possible. Last year I even had to pay our state $124 and I was fine with that!

Specifically, we will receive $4,063 from federal and $2,309 from our state. This equals $6,372 back into our pockets. That would have amounted to $531 per month if we had been receiving that money all year long.

We had several factors that caused our refunds to be so large. The first was that my husband was in a combat zone for the first four months of the year. This money is considered non-taxable by the federal government and the state. While in the combat zone he also earned 27.5 days of vacation that are also considered non-taxable. He used all of those days in 2011, thus nearly another month of tax free income.

With only 7 months of basic pay taxable we qualified for the earned income tax credit in the amount of $920. We also earned a $400 saver's credit for contributing to our Roth IRA's (lower incomes can qualify for this credit). And we have two kids which qualifies us for $2000 in credits as well. We ended up paying zero dollars in Federal taxes and will get a return of our withholding, the EITC and the additional child tax credit.

Under normal circumstances, we would not qualify for the EITC or the retirement savings credit. But we tax advantage of them when we can.

I posted a few days ago that our state signed a new law this past year that renders federal military pay of any kind tax free in our state. Thus we will be getting all of our withholding returned to us and a small refundable earned income tax credit. I was not aware of this law until the day I made my post. We could have filed exempt back in May and had nearly $300 put into our pocket for the last 7 months. I just didn't know. Now that I do, we have adjusted my husband's withholding to be exempt for our state. Thus about $300 more in our pockets each month going forward. Very excited!!

The plan is to use $4,166.62 to finish funding our Roth IRA's for 2011. The remainder will be saved until after our move. We are trying to beef up our cash as much as possible, once we are moved we will attack our 2012 goals!

I filed the returns last night. It appears we should have this money returned to us by February 1. Have you completed your taxes? Are you still waiting for forms?

7 Responses to “Over $6K”

  1. MonkeyMama Says:

    Wow!

  2. Looking Forward Says:

    WhaHoo!! Big Grin Still waiting on tax forms here. I know there will be a refund. I'm thinking about $3k. We'll see.

  3. CB in the City Says:

    I usually get around $2000 but I'm still waiting for forms.

  4. Bob B. Says:

    That's great! Thanks to you and your husband for your service to our country.

  5. frugaltexan75 Says:

    Very nice return!

  6. gamecock43 Says:

    I'm still waiting on my W-2 and then I cant wait to get our taxes done! Though you probably have the biggest return coming over anyone on this site!

  7. LuckyRobin Says:

    We are still waiting on forms. A lot of places wait until the last minute.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]