Primitive Archer
Main Discussion Area => Around the Campfire => Topic started by: osage outlaw on March 04, 2011, 12:17:14 am
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Last year, we had our taxes done by H&R Block like we do every year. We had a lot of deductions that year. We bought our first house and got the big credit, adopted my stepson, plus we got a lot of deductions for all of the new stuff in our house like insulation and a heat pump. When we got our refund, it was almost $2000 more than we were expecting. We called the IRS and told them about it. We were instructed to send a check for the extra amount back to them with a letter explaining it, which we did. We never heard another thing about it. Well, this year, we had our taxes done by H&R Block again and guess what. When we got our refund, there was that extra money again. This was about two weeks ago. We have been talking to H&R Block about it. They said that there must be a mistake somewhere on the IRS end. Today, we got a letter from the IRS telling us that we had paid to much taxes and they adjusted our refund by the extra amount. It is basically telling us that the money is ours. Now, we don't know what to do. An extra $2000 would really, really come in handy right now. But, we don't want to spend it, and then get a letter from the IRS saying they found a problem and they want their money back. I told the wife that we should put it in a savings account and forget about it. If they find a mistake, we can just send it back to them. If we don't hear anything about it for a couple of years, then we can spend it. We just don't know what to do. Has this happened to anyone else?
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Yes, I would suggest putting it into a CD or sum such. A cousin of mine had something like that happen (using direct deposit) and the gov just drafed the account for the amount they wanted.
Bevan R
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`And I'd have someone else do my taxes.
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hr block garuantees that they did it right or they pay if you get audited
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I would put it in a money market account that has at lest 10% held over the last ten years. That way if they won't there money back next year you made intrest of their money.
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I wish. They just take my money. I wish they would send me a check for a change.
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Dito on the money market. You wasn't expecting it, so use it like you weren't
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Spend it all and don't worry about retirement, the IRS, or any trouble
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all the IRS does for me is take a whole bunch all year long
then tell me i need to pay more at the end of the year
as far as H&R block "paying" if you get audited
i beleive all they realy do is give you audit support
so basicaly they have one of their under paid chronies sit with you during your audit
when it comes to YOUR taxes
the only one repsonsible for them being done right is YOU
it doesnt matter if you paid a CPA or H&R block or any other so called tax professional
they screw up,its you that pays for it
i know,i learned this lesson the hard way
now we do them ourselves
atleast if they are wrong now,we didnt have to pay for them to be wrong
as far as the EXTRA money goes
i agree,put it in a money market acct.gain a little interest
when the IRS comes back for it you may need that extra to pay them the fines etc the ylevvy upon you for having THEIR money
jm2cw ;)
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No here is funniest thing to do ask h&R what your max is on a roth IRA contrabution is for this year and invested in a CD. Now it is their money and you will make compounded intrest till retirement and then they cant tax it lol.
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I don't think H&R Block has done anything wrong. They have been very helpful during all of this. We tried doing the turbotax, but we get back a lot more with H&R Block. I work out of state and I think that has something to do with it. This is the second time that the IRS has given us this money. I gave it back once, I don't feel like I should have to give it back again. How does a money market account work? How long do you have to keep it there?
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I would just put it in a simple saving account so you can get to it with no penalties if you need to,at least for a little while, I am with some others,wished they would give me some of MY money back,News flash,they don't have any money,it is all ours. :)
Pappy
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I will say for H&R they screwed up my taxes several years ago and they payed the penaltys but not the taxes.
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I once went to H&R to see how much they would calculate that I should get back, and then how much they would charge me to do it. The girl playing part-time wanna be accountant, probably taking accounting 101 at the community college (if that) said all I could get would be about $625 and that I would owe them around $125 for doing it. I said No thanks and then went to my own trusty personal accountant and friend, who has been doing my taxes for years. I had planned to have him do my taxes all along, but I thought if H&R sounded reasonable I might go with them just because I could get money faster and needed money fast. My friend, who is a CPA with a Masters Degree and is the senior accountant for a trucking company did my taxes and the anticipated refund figure was closer to $3000. He doesn't actually charge me anything, but I give him something for his time. That was the last time I ever went to one of those tax preparer chain businesses.
Aside from that, if the IRS sent you a letter saying the money is yours, its YOURS. I would put the letter in the safe and deposit the money. End of story.
CP
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If you really need the money now, spend it. If the IRS asks for it back you can get on a payment plan.
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You can talk to your bank about CD's, Money Markets, T-Bills. That kind of thing. Most banks have officers just for that type of thing.
I would also reccomend getting in with an accountant and keep with that person. A good accountant will give you advice about stuff like this all year round.
What it costs me to have an experienced accountant do this is worth the piece of mind and the additional he gets me.
Bevan R
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Last year H&R block anticipated $3000 we went to a CPA and got back almost $10,000.
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Yep, I've been given back money from the IRS and I've also owed them money. If you keep in touch they act real nice and they will be patient if you end up owing them cash.
I would spend the money. ;D
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Most people are happy when they get taxes back I scratch my head and think crap I just loaned the government money interest free for a year :(
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i wouldnt know what it like toget money back
seems like for years i either break even or end up paying in
dont understans how folks get thousands and thousands back year after year after year
i own a house,i pay in a fair % of my gross pay each week,i put away into a 401k(the max allowed by law)
i still buy tools each year(not that i realy need them,but need the right off)
even when i still was able to claim my sons i paid in each year
and i still pay in each year
i dont make gobbs of money,but a decent enough living to survive and pay for my rock habit
i dont understand why i keep paying in ??? :-\
i wont go in to the rant i want to go into on this subject ;)
only cause i know it will piss folks off ;D
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I wish I had your Problems..... My Wife and I paid in $21,000 in Taxes during the Year...and we owe an additional $2700...could you send me the name and phone number of this H&R Block Agent...I could really use a tax Break.... ;D
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El D, sounds like you an your wife are working to much ;D your making to much money. :( Later Bob
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No Debts.....No Deductions......... :-[
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El D you should claim a little bit more so you get a percentage free loan for the year, just make sure to keep a little balance in the bank so you can pay back if need be. I always try to end up in the negative because that means you get to keep more of the money you earned and if you have to pay it back, when you have the savings, you are fine.
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No Debts.....No Deductions......... :-[
You can have some of my debt. no problem!! >:D
Bevan R
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El D you should claim a little bit more so you get a percentage free loan for the year, just make sure to keep a little balance in the bank so you can pay back if need be. I always try to end up in the negative because that means you get to keep more of the money you earned and if you have to pay it back, when you have the savings, you are fine.
whats the point of claiming more,if you gotta pay it back at the end of the year :-\ ???
i ilie to try to break even
dont pay to much during the year,and nothing at the end of the year
thats the ideal way
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if you claimed more and opened a cd with the amount you have now then you could compile interest over a years time while you have the money transfered to a savings account. So 5000 at a 2% intrest might be 100 dollars. I am not sure because I did not look it up on a calculator. Now you are not going to be any further ahead so if you deposited monthly $416.00 monthly you would have less than the 100 dollars in intrest. Of course you need to make all deposits/withdraws on line because If you figure in the cost of gas by next year per gallon you may come out losing money trying to get to the bank to make the withdraw. I thought I would add a little humor in to the mix.
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Osage I will give you three guesses where the IRS got that money!!!! :( I am with El D. I had to fork over $24,000.00 last year. This year, I am going to have to pay something again also. Don't know how much, yet, but it ain't going to be fun! I took out an annuity, to get my house built in Mt. because I was on a time limit, when it could be built by my Buddy, and his son, and the material cost was down significantly also. I told the finace guy at the Credit Union, to tell them to pre tax it. Well they did, just not the proper amount. Anyway, I got whacked, and now I am going to get another rectal exam by them this year. :( As for payment plans with them, you can do that. Plus interest that keeps building. It is better to go ahead and pay them all of it, at once. I sent in a grand, and then scrambled to get an equity loan on my house in Mt. to pay them. Now I no longer have a mortgage free home.
Anyway, good for you ! This should be the last year, I get hit hard. There is no more money in the annuity, and I am on SS, and pension. I am a bit worried as to how much I am going to owe this year. I don't have much left in the bank, and want to get some tools for my shop. Keep it for a couple of years, and then spend it, and definitely keep that letter in a safe place!
Wayne
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Sailordad you get to keep more of the money you earn and even though you have to pay it back at the end of the year maybe it will keep you from putting something on the card you otherwise would have. As long as you have the money by the end of the year you don't have to pay any interest on it and even if you do it's usually less than a credit card charges.
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Michael,
ive had one run in with the IRS
aint doing that again
dont see the point of keeping it now,and paying it back at the end of the year
i dont use credit cards,if i aint got the money for it now why would i want to pay interest on it?
i like to find that happy medium were i pay just the right amount all year,nothing at the end
and nothing coming my way at the end of the year either
the problem that the wife and I have is we have no duductions now(kids are all grown and on their own)
done have extensive medical bills to write off,alredy own more tools than i use at work so buying too many more to write off is pointless
i put away as much as possible into my 401k so my taxable income isnbt as high etc etc(wife does all the same too)
we both claim one or less all year long,and we still end up paying in each year
now once we do our taxes for the year,then i will know if i can actaully make it to the classic
if good ol' uncle sam says i owe to much more ,well then there goes my vacation money.
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I would have let the chips lay and not said a word. H&R block didn't empress me years ago when I gave them a try..