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Video instructions and help with filling out and completing Form 843 Refund

Instructions and Help about Form 843 Refund

FS in radio it's all about what's next go to financial survival network comm and sign up for your free weekly newsletter you'll also get three free reports the financial survival network it's all about what's next welcome you are listening to the financial survival Network I'm Carrie Lutz today's to 2022 well if you are one of the many millions of Americans who've gotten smaller refund checks compliments of the IRS Christmas club savings account well then you probably want to hear what we're gonna say why it's happening why it's not necessarily bad what it means and what about next year well our good friend Jeff Sahab noted tax expert and all around the accounting guy is with us now to opine on this Jeff it's great to have you back why are the refunds getting smaller hi Kerry thanks for having me you know people are expecting refunds because they look at it like a savings plan I think like you're mentioning and the refunds are smaller because the accounting software that's used to withhold taxes throughout the year actually adjusted during the year so what happens is people might have experienced a slightly larger take-home pay but didn't quite realize that that was the benefit and so then they get to the refund part of the year that we're going into now where they're gonna file their return and see if they get any money back and they're they're wondering where the money is that they thought what they were getting back uh-huh so effectively it's it's kind of an illusion they got it I mean our society is professional procrastinators right so I think due to that instinctive procrastination that we have we end up surprised by something that we could have actually known about a year earlier and so now we end up oh gosh I'm so surprised why is my refund smaller than I than it was last year and it's just because we didn't pay attention really yeah so it's not Trump's fault I don't think so I think at the end of the day the tax code is actually cut most people's to accident so you know you have most Americans weren't actually even claiming 10 $12,000 of write-off and so with the standard deduction doubling you know if you're a married couple you've got twenty four thousand dollars of write-off right off the bat no questions asked and you might have not had that before yeah I can understand that so might even pay to get married again for some of you out there yeah now there's now of course there are states that did get whacked I mean we're in Texas so thankfully we don't have state income tax but if you go out to a state like California where the top brackets at thirteen point three you know they could be receiving a smaller refund for a different reason you're no longer allowed to deduct all of those state income taxes the salt taxes are state and local taxes are limited to ten thousand dollar deduction so you know in Texas the way that might affect you is the amount of property taxes you can write off but you know if you're a high income earner in a high state income tax place like California you just lost a major deduction so so that's also having an impact on some folks I can see that for sure in New York in New Jersey Connecticut all of these high tax states even a state like Minnesota high tax state Illinois a lot of a lot of taxes so it surprised me is Massachusetts I always thought it was a high tax state in compared to some it's just not I mean it's one rate for everybody I think it's I don't remember it's five point one percent or six point two five but everybody pays the same rate and it's kind of in the middle of high tax states so so you know an interesting thing Jeff is that people are fleeing these high tax states where possible obviously if you have family in New York or California that you don't want to leave or a business that you can't leave or employment that you'll never be able to replace then not so easy to leave but it's it's really up the incentive for you to move out of these high tech states if you can swing it yeah it's easier than it's ever been with technology allowing for a lot of work to happen remote I live in Austin Texas and we're huge beneficiary of this you know at one point I'm not sure with the current statistic is but we had over 150 people a day moving into Austin Texas a lot of those coming from these high tax states just like we have a lot of tech companies bringing jobs here for the same reason so you know but when you talk about corporations I've seen a article going around talking about Amazon paying zero tax and I don't know if that's true I haven't audited their financials but even if it is you know a lot of people want to kind of hate on the corporations and this new C Corp tax rate getting cut to 21 percent and I think that you know we're gonna start seeing a lot of positive effects if we haven't even already seen them just from corporations having more cash flow as a result of these tax savings that they can pass on to whether it's investment in more infrastructure which puts money back into the economy or whether it's hiring more jobs which puts money back into the economy you know so sometimes people get hung up on the wrong thing when they look at this tax plan Hey look the fact of the matter is that you'd be prior to this reform which Democrats and Republicans.

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