New eFile problem ?

[kcjenkins]

Those who worked and file as a dependent of another this year are really going to think they are getting screwed. I had a parent bring their information in today, along with their son's W-2. The son's employer did as they were told to do...cut the withholding by about $8 a week It came to almost $400 less in withholding. Problem is, the son does not get the $400 credit unless he claims his own exemption.

So, instead of getting the refund he was expecting, he owes $260. I can see it is going to take alot of explaining to parents. I also expect a lot of college kids doing their own tax return and seeing the results....will decide to go ahead and claim themselves. That means more parents with letters about July or August.. Or parent's who's efiles are rejected because of the kids having filed earlier and claimed themselves.

[taxguy057]

Those who worked and file as a dependent of another this year are really going to think they are getting screwed. I had a parent bring their information in today, along with their son's W-2. The son's employer did as they were told to do...cut the withholding by about $8 a week It came to almost $400 less in withholding. Problem is, the son does not get the $400 credit unless he claims his own exemption.

So, instead of getting the refund he was expecting, he owes $260. I can see it is going to take alot of explaining to parents. I also expect a lot of college kids doing their own tax return and seeing the results....will decide to go ahead and claim themselves. That means more parents with letters about July or August.. Or parent's who's efiles are rejected because of the kids having filed earlier and claimed themselves.

Makes you wonder if the great lawmakers in the sky even considered what a mess they were making when they passed this credit into law. Maybe they need a "reviewers exam" too! :blink:

[chuck]

Congress was trying to get people to spend more money last spring. I'll bet people spent that extra money and now because they spent it they'll get to borrow some to pay it back. Maybe the backs can give them a reverse RAL and add some extra dough to their already stuffed pockets.

[elfling]

Congress was trying to get people to spend more money last spring. I'll bet people spent that extra money and now because they spent it they'll get to borrow some to pay it back. Maybe the backs can give them a reverse RAL and add some extra dough to their already stuffed pockets.

Yeah, they spent it . . . practically without even noticing they had it. For a lot of lower income earners it amounted to a $2, $3, maybe $8 per week. Part-time workers saw no change from zero withheld to zero withhled. But with our region's grain and vegetable fields under water from an excessively rainy spring into summer, the price of everything from bread and cereal to potatoes and carrots to milk and eggs increased. Few folks in our little pocket of PA saw relief via MWP's 9-month adjustment to fwh. The struggle just to eat ate up any increase.

Elfling