Just got a Federal refund 8x more than my accountant told me to expect

Discussion in 'Community Discussion' started by MovieCutter, Apr 25, 2012.

  1. MovieCutter macrumors 68040

    MovieCutter

    Joined:
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    Location:
    Washington, DC
    #1
    I'm sure it's a mistake, let me just relish in my excitement of getting 8 TIMES more of a federal refund than I was expecting (talking 5 digits more than expected).

    Seriously though, has this happened to anyone else? I know I'm supposed to let it sit and wait for a letter from the IRS to explain the discrepancy, but I just ordered a new maxxed out 12-core Mac Pro 30 seconds ago when I found out.....

    ...no I didn't...

    I'm self-employed for the first time in 11 years so I don't know what to expect. Experiences?
     
  2. phas3 macrumors 65816

    Joined:
    Oct 5, 2008
    #2
    send some of it to my account
     
  3. MovieCutter thread starter macrumors 68040

    MovieCutter

    Joined:
    May 3, 2005
    Location:
    Washington, DC
    #3
    send me a 2 17" MBPs and we'll talk.
     
  4. -aggie- macrumors P6

    -aggie-

    Joined:
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    Where bunnies are welcome.
  5. bradl macrumors 68040

    bradl

    Joined:
    Jun 16, 2008
    #5
    This might be right. Seriously.

    If you are self-employed, especially if going off of a home-based business, there are a lot more credits and deductions you can take outside of a simple W-2 or 1099-type return. For example, your home office, home improvements, phone calls for work, mileage, tolls, supplies.. Those plus a bit more are all expenses that can be written off (read: added as expenses on your return form) that wouldn't be able to be added on a normal 1040A or 1040-EZ form.

    YMMV, and your CPA may have done a really good job on your taxes, so this may be right.. definitely speak to your accountant the next chance you get, and don't spend or even touch that check.

    Disclaimer: IANAL, IANACPA, but do have a home-based business outside of my normal W-2 job.

    BL.
     
  6. MovieCutter thread starter macrumors 68040

    MovieCutter

    Joined:
    May 3, 2005
    Location:
    Washington, DC
    #6
    Already have. He's in China, will investigate when he returns in May. Trust me, I'm not spending that extra cash. That'd be stupid. I'm just holding out a tiny bit of hope that the IRS found something in my estimated tax payments where they realize I overpaid...and are giving that much back. Not likely, but who knows.

    ----------

    Well I own a property that I rent out, as well as factor in a portion of the DC property I rent as my office/work space. Not to mention cell phone/cable/energy/etc bills. My accountant is a longtime family friend and a trusted guy, so he might have undershot me, but who knows.
     
  7. -aggie- macrumors P6

    -aggie-

    Joined:
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    #7
    My wife is self-employed and I do her taxes (our taxes). Look at your schedule C. Are you showing a huge loss (or any way the IRS would have changed something there to get a huge loss)? The bad news is that even if the IRS somehow got this right, you're almost certain to be audited.

    Didn't you get something that said what they changed? I've had small errors in the past, and they told me what they changed in the letter they sent.
     
  8. smithrh macrumors 68020

    smithrh

    Joined:
    Feb 28, 2009
    #8
    Something doesn't add up here.

    Are you saying you didn't actually look at your returns before you signed them, so you really had no idea what your refund should be?

    Or,

    Are you saying that the amount that the Feds refunded is 8x what you filing lead you to expect?
     
  9. MovieCutter thread starter macrumors 68040

    MovieCutter

    Joined:
    May 3, 2005
    Location:
    Washington, DC
    #9
    I looked them over, they were supposed to X, but what was deposited was X times 8.

    Also, score on the New Glarus. I'm from WI originally, and have a keg of spotted cow in my home kegerator...delicious.
     
  10. CalBoy macrumors 604

    CalBoy

    Joined:
    May 21, 2007
    #10
    Do you have an S corp for your self-employment?

    If not, your accountant might have been basing the self-employment ssa/Medicare contributions at the old rate when he gave you the estimate, but they were reduced for 2011 by about 2%.
     
  11. pvmacguy macrumors 65816

    pvmacguy

    Joined:
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    Location:
    Jax
    #11
    Be lucky! I got $33.38 back... I can't even buy a nice steak dinner for 2 for that! I don't even think I could be an expensive lunch for 2 with that either.. :mad:
     
  12. MacNut macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #12
    So don't take anyone with you.
     
  13. tigres macrumors 68040

    tigres

    Joined:
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    Location:
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    #13
    If the accountant was 8x off, and the IRS is right: fire him-
    Friend or not- that could have gone the other way. If I made that error in my business I'd be fired.

    Just sayin-
     
  14. smithrh macrumors 68020

    smithrh

    Joined:
    Feb 28, 2009
    #14
    I suspect a mistake by the IRS in this case - don't touch a cent and chat with your accountant as soon as you can manage it.

    The IRS can and does re-calculate returns but you know about it generally.

    Mmmmmmm Spotted Cow..... :^)
     
  15. pvmacguy macrumors 65816

    pvmacguy

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    #15
    You don't go out alone when you have a fiancee. :rolleyes:
     
  16. MovieCutter thread starter macrumors 68040

    MovieCutter

    Joined:
    May 3, 2005
    Location:
    Washington, DC
    #16
    I don't think he was wrong. He's saved my butt in the past but not like this. I'm guessing IRS error. Friend or not I wouldn't have him as my account if he made egregious errors...now or in the past.

    Oh I'm not, it was just a shock to log into my account this evening...just gonna let it sit there until I get that IRS letter.
     
  17. smithrh macrumors 68020

    smithrh

    Joined:
    Feb 28, 2009
    #17
    This is actually good.

    Why give Uncle Sam a loan at 0%? I aim for a small payment every year - not big enough to attract any underpayment penalty, of course, but honestly I've never understood the "refund" mentality.

    What's being "refunded" was _yours_ in the first place, they're just giving it back - why let them have it?
     
  18. dukebound85 macrumors P6

    dukebound85

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    #18
    surely a tax accountant would be a better source of info than a mac board! lol :)
     
  19. MovieCutter thread starter macrumors 68040

    MovieCutter

    Joined:
    May 3, 2005
    Location:
    Washington, DC
    #19
    I already contacted him. Just wanted to brag preliminarily and see if anyone else had such a discrepancy.
     
  20. smithrh macrumors 68020

    smithrh

    Joined:
    Feb 28, 2009
    #20
    Excellent.

    Now we can talk about how you managed to get a keg of Spotted Cow all the way to DC, because I'm way more interested in that!
     
  21. MovieCutter thread starter macrumors 68040

    MovieCutter

    Joined:
    May 3, 2005
    Location:
    Washington, DC
    #21
    I have a few Cheesehead friends in the District who DRIVE home to visit family 2-3 times a year. I give them cash+a commission, they smuggle Glarus kegs and cheese curds...and if I'm lucky, some awesome seasonings and blocks of mozz from Tenutas in Kenosha. I keep them in my kegerator and have 1-2 months of amazing beer you can't get outside of WI. We all win.

    Speaking of which, I'm due for another pint.
     

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