This Is NOT a Gift From The Government! - Dave Ramsey Rant
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- Опубліковано 28 бер 2022
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Funny how if you don't pay on time they can go after you and penalize you like no tomorrow. But it's perfectly okay for them to hold your money indefinitely if they want to.
if the refund is more than 45 day late IRS pays you interest on the refund amount. However it's still not a good idea to overpay at first and get a refund.
@@mqayyum9226 Why? I have never be fined by the state nor the feds for overpaying and getting a refund. But every year I owed the state I payed an extra 6$ and I know people who owe every year who own extra for not paying in full. How is avoiding a fine ever bad?
@@donaldlyons17 Avoiding a fine is not bad, but if you're getting a large refund, that money would have done better for you sitting in a savings account, even with today's pitiful savings interest rates, as opposed to giving the feds an interest-free loan.
True
worse, the IRS stole 5k from me and still havent provided a refund. They keep evading my calls by redirecting me to someone else and they have me jump through hurdles like an idiot. and i still have to somehow pay my taxes.
There’s a reason Dave is one of my favorites when it comes to financial planning. This video needs to be shared as much as possible.
Calling it a “refund” is the reason people think it’s a gift. It’s actually just change. It’s no different than paying $10 for a $7 purchase and they give you back the $3. But if the IRS called it change then people wouldn’t get excited about doing their taxes. Rather they framed it as a gift. People actually look forward to tax season to get their “refund” If you are getting a refund it means they stole more money from you than they deemed you owed.
OMG, I’m going through this right now with the IRS. I was just told that my refund was being held for 45 days. My household is ok without it for now, but I find it interesting that they find it acceptable to hold my money but yet I can never be late paying my taxes to them.
Fear of IRS makes us want to pay more during the year and expect a refund. Lack of knowledge creates fear, Educating ourselves will set us free!
I completely agree with this. I just turned 40 years old...I guess I was taught to "be afraid of the IRS" I never really understood money...saving, budget, taxes...I have always been a hard worker and a generous person and I don't have fancy cars. I have a nice home that is paid for...BUT...it doesn't feel like I own it because of the stupid taxes on the property ☹️ I never considered taxes or a tax refund a good thing...
@@caitlincunningham8354 Congradulations on your paid for House! Yay! Agree on the property tax thing, some of the things are out of our control. We just have to learn to play the game!
We used Dave's quiz thing and we ended up owing $44 which is doing really good! Past years our refund was 1200-1500....so I think we did good!
Don't be so sure. How do you know Dave's quiz is more accurate than however you were doing your taxes in the past? You may have left out important tax credits or some other thing Dave's quiz has not taken into account (given your situation has overall not changed too much in the past years).
@@Cookieboy70 it's a free quiz.....??
and it tells you what numbers are needed on the form your employer gives you. We've not yet used his new tax service, though we likely will next year.
@@sackettfamily4685, where do I find the quiz?
I would rather get a $1200 refund than owe $44 do the IRS charges interest on the $44
Where do I find the quiz?
Ramsey rants never get old!
When you own your own business tax refunds are just a pipe dream.
What's also insane is folks borrowing money because they can't wait for their tax refund after they've filed. Follow Dave's advice and try to get a $0 tax refund. It's like getting something extra every month but it's really your own money.
Exactly what I am working on my w2. I don't want refunds anymore.
The problem is, we’re all too terrified to OWE! December bonuses throw me off too. It’s different every year. 🙈
that's right. plus you have to figure out if you owe a penalty, then figure out what the penalty is, if you owe money April 15th.
Fact
my work changed my monthly commission to quarterly "bonus", they tax the fire out of it. I was told they tax bonuses at a higher rate regardless of amount. pretty awesome
I ended up owning less than $50 to the IRS. That's about the best I've ever done.
If they are going to make you do your own taxes that $50 should be a service fee for the time and possibly money you spent paying taxes.
Apparently I’m not one of stupid ones, I didn’t get a refund. I had to pay about $250 more than they took out this year.
I had 5500 dollars in CC debt, then my refund came and now I have 4500 in cc debt! I'm gonna work to pay off the rest.
Received my refund, paid off my car.
Officially debt free!
Congratulations!!
Ayye congratulations!!! Welcome to the debt free club!!
Congrats, Jesse! It must feel great to have that weight off your shoulders!
Thanks!
I have $200k in debt but I’m a multi millionaire. Being debt free means nothing.
I have to think that people that are waiting forever for refunds are doing things the old fashioned way (by mail). I find electronically and they deposit fairly quickly.
nope. electronic submission the first week of February and we still don't have ours.
Filled first week of February through TurboTax and nothing.
Filed January through TurboTax and got mine February 1st.
We did ours 100% online and got the refund in less than two weeks.
My parents are still waiting on a refund from 2019!
If your financial circumstances are pretty stable and don’t change much from year to year, you can, with a little trial and error, dial in your withholding so your net balance will be zero when you file your return. It’s when things change, e.g. sell your house, start a new job, etc. when it can be really tricky getting it right.
I'm with a large CPA firm for over 25 years. Takes 2-3 days to get refund.
Yup I increased my withholding with pension and get over $7500.
Accumulates in my checking account each year.
I hate that some people have not gotten their tax refund yet. We were one of the lucky ones I guess that got our refund back fairly quickly.
@@Quinu12 This is kind of funny, but one time we had to pay $1 to the IRS. Just thought that was kind of weird. But I'm really sorry that you ended up having to pay that much though!
When a person worries or even think about their " tax refund " they are already in trouble ! Go through an entire year living and think about a tax refund ? Pathetic !
@@jerrylansbury9558 Luckily we don't ever have to really think about any tax refund until it's time to do our taxes. No sense in thinking about it all the time for a whole year. 😂 If someone is afraid they can't pay the IRS then I can sort of see them worrying, but other than that no.
i think its more people who mail in their returns who are backlogged. i always e-file and it comes back in the same amount of time every year.
@@realtonysolo Yes, same for us.
I LIVE for Dave and Rachel’s back and forth. 🤣
its actually even worse than you explained, by the time inflation hits it, you lost money. You didn't even get back what you overpaid because each dollar is worth less than it was a year ago.
End withholdings and require everyone to write one check at the end of the year; as it was. The federal budget would be forced to contract almost immediately.
Santa is real?!?! Yay I knew it! I knew I loved Christmas and if Santa is real that's even better! I LOVE Dave Ramsey rants!
While I agree with Dave in principal, many people are getting refunds because of tax credits. It's not because too much is being withheld from their paychecks.
Exactly, refundable credits, income requirements for credits is a joke from our past
Good point. The Gov has been handing out cash in a thousand different ways.
yeah this is another video where Dave has no idea what he is talking about.
@@jamesweber7537 Right? You can’t withhold less than zero. I guess he’s been rich too long.
Coming from a person like Dave Ramsey that makes too much money to even get a refund
Serious question to anyone out there, don't kill me - why is it so terrible if you get your money in a refund rather than paycheck to paycheck? I rather pay more than making a mistake and owe. As Rachel said, it's hard to estimate withholding so you don't end up owing. Also, I think of it as savings. It's my money. Unless I'm receiving less in my refund than I would have earlier on, I can't seem to figure out why it's bad.
I think for you and me overpaying on taxes is better for us. But for others they want all “their” money now! I would much rather overpay.
Depends on the person. Its interest free so some individuals rather move that money in different ways to make it work for them. It basically comes down to discipline.
They SURE be on time when you owe tho! 😆
Haha yes mam, if the roles were reversed they would be threatening to put us in a metal box and throw away the key.
Ain't THAT the truth
No refunds are not gifts. Whether it's your withholdings or credits. That being said, they did not stop working for two years.
I got a refund of $2 this year. I came really close though!
I owed money in 2020. We had to snail mail it and they still haven’t processed our return. Somehow they were able to cash our check though.
The IRS is always efficient when they’re taking your money
They tried to send my money back because they never processed the tax forms, but did cash the check.
I could never do less than $100. I tried to keep it under $500, which worked pretty well. Usually my Federal Refund payed my State Taxes still owed.
Some people get more money than they paid in as a refund like if they have low income and a lot of kids
Yup exactly, he is totally wrong about this
Yes, they benefiting from taxes not hardworking people.
And if I was king that would stop instantly!!!
Good video. I got so used to using it to pay off insurance (due yearly the same month I did taxes) that I never thought it would be better to invest it and owe a few bucks.
Dave: "You don't OWE taxes, you've already owed taxes, you just need to pay more."
Rachel: ". . . Isn't that 'owing' taxes?"
When Dave folds his arms like this, you know he is serious.
You mean, "stinky fingers" Ramsey?
When he fold his arm I think guilty
Rachel does it now too
Man I had to pay taxes this year due to 1099 work and they took that money the SAME DAY as I filed lol
Dave’s Rants are THE BEST! Watching from Australia.
You can't stop me!! I'm going to spend my tax refund check like it's a delayed Christmas present from an elderly uncle if I want to!!! I'm going to be as frugal or as impulsive as I want to be!! It's my prerogative. It's my choice!!
I needs me a good Dave rant every now & then
I just look at it as an extra savings . If it was in the bank (not a high yield savings account) you wouldn’t be getting interest anyway. A lot of people would not budget to save an extra $3000 a year.
Thanks for explaining this❤
Just did my taxes today…. $0 owed to the State, $12 owed to the Federal Govt.
💯
it's be real.
without refunds, everyone still be broke
dealership won't sell alot of cars
property taxes won't be paid
major repairs at home won't be fix
vacations trips will drop
so much more
not easy for everyone to save
Definitely a poor management and discipline society
I had taxes taken out of my furlough pay back in 2020. When they allowed us to get those dollars back, we filed a 2020 amended return. It’s been rotting at the IRS since April 29, 2021….
The irs messed up on my taxes and sent me a letter saying “we owe you 700 dollars and you have until (two weeks ago) to respond if you want it back”
I was like. Yo is this Foreal? They sent me a letter telling me it was too late to respond 😂😂
Great message!
I love yo channel sir. God bless you 🙏🏿💯
I really liked this video from the aspect of observing the communication styles between the generations.
I love Dave, but he is way oversimplifying this. I am a CPA that recommends people to Dave, but I would leave the industry if every one of my clients got mad at me for them getting a refund.
There are way too many moving pieces, some of them being out of your control, that come into play here. Also if your income is above a certain point, you could pay estimates to prevent a penalty that is more than the tax you will owe even if your tax liability will be the same every year.
He needs to scale it back a little here.
Got a $161 "refund" from the US, and a $9 one from my state. In the past it has been hundreds of dollars from both, so I must be doing something right.
What alternate universe does Dave ramsey live in? I've never heard of anyone who had to wait 10 months for a refund
How about the people that get alot of refunds because they have alot of kids but hardly work?
Then they should adjust their exemptions.
I got my money in a week or so a month ago...used turbo tax. I bet those that filed by snail mail are the ones waiting.
I have known people who would have way more taken out than was needed for the sole purpose of getting a "free" check for thousands of dollars to spend on vacations, expensive purchases, etc. Maybe just have some self discipline and put that same money in savings and at least then you would get some interest it. They are like the third guy who buried the money in the parable of the talents.
This method does work for people who can't figure out how to get the money into their savings. They lack self discipline and may not get it anytime soon. But they never even see the money that gets withheld and thus have no chance to spend it. With current bank interest rates so low, it doesn't matter whether they get interest.
It's not how I do it, but to each their own.
I don't see any connection to the parable of the talents. Also, interest rates are at historic lows in all interest accounts.
Lol @ Rachels face during Dave’s shameless plug
8:46 hahahaha Dave killed it
I get thousands of dollars in refund from my taxes and I’m perfectly fine with it because I use it to pay off a tone of debt at the end of the year
Yes this is a great thing to do with whatever refund you get. Also the third paychecks that happens twice a year for most people.
Just curious. Did you get your refund this year?
@@MarcyJ2F yes
Santa Claus does not live in D.C.! 🤣🤣🤣🤣🤣
When a person worries or even thinks about their " tax refund " they are already in trouble ! Go through an entire year living and think about a tax refund ? Pathetic !
It’s not really a tax return. More so a tax confession. Abolish the IRS along with all these other unconstitutional alphabet organizations.
Unconstitutional? Uh... No. Not even close. Take a civics class please
We have been working on getting down to plus or minus 1000. We thought we were going to owe this year cause we thought we should have been paying a little more in, but we got about 2800 back. So we will be adjust more this year
*I called my Tax Department in Australia because they had 14% interest rate on late payments to them, I asked if I could invest with them and get 14% since that rate is so high it's worth while investing.* 🤣😂 They told me I can't invest in the tax department😂😂
Love the two tips to adjust for too much money coming out from taxes!! Dave knows the ways for taxes, let’s listen to him. :)
Go over the proper calculations to help us balance it out? Where do we go to figure this out?
Our refund was $23k this year 💀.. I’m trying to convince my husband that owing a little bit in taxes is better than giving them all our money.
What!?! Lol good lord. Grab him by the shoulders and shake him XD
I've never even heard of something like this! 😂
How many kids do you have?
Yikes! Dont want to alarm you, but that might trigger an audit?
How is this even possible?
Im glad that Rachel is there to correct her father. Love Dave, but I'm one who received over $5000 in taxes and it isnt because "I'm dumb" . I just learned (from listening to him) that getting all this tax money back isn't as glamourous as we make it to be. Instead of calling names, a more thorough explanation video needs to be made so that we can fully understand what to change on the W4, cuz let's be honest, there are no classes on this stuff and we are just answering questions to the best of our knowledge... So kudos to Rachel, thanks for speaking up on that part.
I also like to put 100$ bill in my winter coat pocket during summer and same during winter into my summer shorts pocket. Then I’m so happy when I accidentally find this money!
Dave is so right on with this! Getting a refund is not a good thing. It means you miscalculated. Owing is not good either, just in the opposite direction. The goal should be to get it just right.
@Donna McCall I’m one of those people
What if I withhold zero and get a refund because of refundable tax credits? Many people are in that situation
@Donna McCall SO many people dont understand the difference between deductions vs dependents.
@@KC-dr3cg do they understand stimulus vs dependents or EITC vs dependents?
It means you paid more than you should have.
Had to pay 6k and just got another letter for another 2k. They sure work fast on accounts that owe money and they have even more time to find more money for you to pay. LOL good luck everyone
This was the first time we actually owed money to the Govt due to how they did the child tax credits.
It's best to owe as much as possible without incurring a penalty. You can put the money aside and draw interest on it until it's due in April 15th.
I can't believe anyone is still filing a paper tax return. The processing of paper returns has always been several times slower than electronic filing. It's time for the reluctant people to finally embrace tax filing software.
Why did he say island of a misfit toy like that 😂😂😂🥴
"Adjust your withholdings in payroll"🤣🤣🤣🤣
this was only my second year out of school working a "real job." Even through college, I've never had a refund of more than about $250 combined for state and federal.
When we get a refund at tax time we all know that it's money that has been withdrawn we all know it's not a gift we all know it's not extra money
I call it the season of the 'Annual Thousandaires'. They get huge checks around February and they're all broke by May with nothing to show for it.
The business owners understand exactly what Daves preaching here…
I want an actual refund for my taxes for the past couple years.
I am so glad taxes in NZ are simple.
Well, at least a bunch simpler than in USA!
What should I do in order to get more money in my paycheck throughout the year, unless money in a tax refund? The only thing that I know of is on the i-9, you put how many exemptions you're clean, which lowers your taxable income during the year. But as far as I know, if you're single with no dependence, you only are able to claim one exemption. But when I ever claim one exemption, I always get a big tax refund. So what do I do? Do I claim more exemptions and I'm legally allowed to?
It is a W-4 and you can claim as many exemptions as you want, regardless of how many dependents you have. You can also have extra amounts withheld if needed. I have an extra $300/paycheck withheld to cover the taxes I need to pay on interest and dividends earned during the year.
There are no more exemption claims on tax withholding forms. It changed recently. I updated mine in January and found it out that way. Instead of claiming 1/2/3 etc, you specify how much money you want withheld from each paycheck. There is a table on the form now to help you determine what is withheld.
My mother went to heaven jan 2021 and i just got a letter from IRS saying they need 60 days days to review and process her $537 refund. And they still addressed the letter to my mother whose deceased instead of me as the executor of the estate.
A Tax refund is the only way some people can save money, unfortunately.
Basically
The worse thing is how people have no clue how much they pay in taxes. “Ow , I don’t pay , I get a refund “
If people had to write a check to the tax collector, there would be more than a revolution, Dave. I think people would be bringing pitchforks and torches.
Haha no. Americans are way too lazy to stand up for themselves.
Doesn't matter. They will get a line on your house or other assets. There is no due process.
I was told these tax returns are the ones that were filed by mailing in the return. I filed mine electronically and it was processed immediately.
Same. I did mine electronically 3rd week of February and it was done and accepted within a day. Got my direct-deposit shmancy pantsy $28 refund a week later.
Guarantee 95% of people would have ended up with less money if they went with Dave's option here. Forced savings is better than seeing a little bit of extra money in your paycheck
For some people, that's really true. I had a friend who had big refunds every year, and that was their vacation money. At the current bank interest rates, who cares if they made no interest? Had they gotten more money in every paycheck, it would have dribbled away instead of going into savings.
Exactly, I am a super saver, but I still like having a tiny bit more "forced savings" that is returned once per year.
Yeah and that's just a you problem. You are bad at budgeting if $150 extra a month would have been wasted.
@@jodylarson4697 You're friend isn't maximizing his potential, not sure if that's something to aspire to.
@@hectoralejandro9883 most Americans don't have $400 for an emergency.
I owed both state and federal, but not too much cause I like to keep it as close to $0 as I can. Boy did they process my taxes promptly!
I like getting a tax return. I have no debt, have a fully funded 401k and Roth IRA. And cash savings. I use my return to travel to the U.K. every year. Works for me. Get my return mid February, every year. Plus no chance of owing and writing a check to the IRS. Nothing worse.
I know a refund is my money I took Accounting in college. I look at it this way, my refund is money that is going to be used for a yearly bill. Yes I could get the money and yes I could invest it, but I could also loss it. I pick what I pick and deal with it.
What I worry about, at what I think many others worry about is that if people underpay by too much you get penalized. In this low savings interest rate environment, I’d rather get a small refund then have to pay in just for the peace of mind of being free of clear of the penalty.
i can't stand commercials that negotiate settlements for less than what people owe, i feel ripped off for paying mine in full every year.
In the UK, your taxes are paid according to personal threshold. It’s almost rare to get a “refund”. You know what you’re supposed to pay according to how much you earn. This is so enlightening 😳🤔
So here in Canada it takes about a week to get your return and its direct deposit. There are also a ton of programs that let you get money back that isn't related to how much tax you've been paying from your income. Ex. you can get up to $2500 back for each child that you've been paying childcare for, disability tax credits and so on. So it's not always just about paying to much on your taxes every pay.
I love a good Ole Dave ramsey rant
Yep, I'm stupid. I'd rather they owe me, than I owe them. They're scary, & they know it! So I'm just going to keep pretending it's a savings account.
" island of misfit toys..." yesss! Who else gets this reference?!?
“Are you gonna be THERAPIST Dave”. Lol!
I love Rachel. I feel like she’s the future of the company. She’s willing to question old practices that may be out of touch with reality, and has no problem standing up to her father. She’s a strong woman for sure.
@@genxx2724 nepotism is real
Since adjusting my withholdings, I only get back about 200 now. Was getting back like 2-3k before
I went to my HR to get my amount lowered, and they told me they didn't know what to do, and that I should talk to a tax person!
And how do you adjust that to the point of balancing what is taken out of your check? Adjust the W4?
Well, surprise surprise, the IRS determined I was lying on my W4. (I had it balanced out to where I was getting between $100 and $300 back as a return)
They have notified my employer to withhold the max amount and not allow me to adjust my W4 any more. As such this year I got an $8000 return.
So be careful with this advice, You may want to keep more of your pay but they can decided to take the max if they want.