How did it feel to loan the government $3200 interest free? I hope your tax man showed you why you were taking out to much money.

It has alway amazed me how people think they are getting money from the government and don't understand it was/is their money.

kc0iv

 

You should seek the advice of an expert (not me ) but yeah, you got it. Companies who pay "per diem" actually lower your gross income, tax it, pay you your net, then pay you seperately for the "per diem" tax free so in that case you already got the deduction.

 

Doesn't matter to me, I'm just happy I got it back. Better than nothing.

 

Had you put that money in a simple passbook saving account you would have made around $160 in interest (Depends on your bank's going interest rate). If your paycheck runs around $1000/week that would be like getting an extra day's pay.

But I guess it is what ever floats your boat.

kc0iv

 

For one thing the money would go into the bank a couple hundred dollars a month so the interest would be negliable, assuming the money was saved and not spent in the first place, which is unlikely with most people.

 

I claim the maximum # of deductions I can in order to keep my tax withholdings to a minimum and I still got $3400 back last year. If you know a way to reduce that please let me know.

 

How much do you get charged for someone to do your taxes? How do you verify their expertise in issues specific to truckers?

I did my fiance's taxes last year using HR Blocks' Tax Cut (Premium version). It even asks if you fall under DOT regulations when you start to prepare your deductions for meals. It seemed like a good tax program, but I still felt nervous I was doing something wrong or missing deductions he could have taken! :? :? :?

 

The wife and I pay $200.00 at H&R Block to have our taxes done. I have never had any problems with them. They are pretty good about knowing what drivers can and cannot claim. I donot trust software such as Turbo Tax and stuff. That is just me. I would rather have my taxes done by a person that can answer any questions that I may have.
Also, STAY AWAY FROM RAPID REFUND!!!!!!!! Those are nothing but a money maker for the tax places. You will lose more then HALF of your refund. I did that ONCE, only once! I wait for the IRS to send me my money(takes about two weeks, get my taxes done in feb. right after I get my W2)

 

I used a simple example in an attempt to show where kona911 could better use his/her money.

I wouldn't be using a passbook account for savings.

But I agree the interest would be less. If it was a simple interest account and the same amount was added each month then it would be 1/2 for the years. With a compounding interest rate it gets a little more involved. It requires either a computer program or a rule of 78 chart book.

As I said before -- whatever floats your boat.

kc0iv

 

If this is normal I would suggest you talk to a CPA. You have something going on besides just payroll deductions.

kc0iv