And it is good news.....we are getting approximately $2800 back from federal and approximately $300 to $400 from state.
The reason? Most of it is from the American Opportunity Credit.....for 2010 and 2011 we were eligible for a $2500 credit as our oldest daughter is in college. We also get the $1000 child credit for our youngest.
Per our tax lady....next year it will definately change and we will not be seeing this kind of a refund again for a long time....if ever. We will lose the child credit as our youngest will turn 17 this year. Apparently they will take away the american opportunity credit of $2500 and it will change to the lifetime learning credit which will be $2000. All in all we will lose approximately $1500 in credits for 2012.
She did say our withholdings are right on target though and will re-evaluate next year. We may get a small refund with those changes at least from federal....state is another thing....our state has a state income tax and it just feels like they tax us to death so who knows if any of the above will affect that.
I guess all we can do is wait and see.
It will be nice to have this money though, I have to admit....we were not planning on such a big refund so it is a nice surprise.
More on the plans for that later!
Taxes done :)
March 3rd, 2012 at 04:12 am
March 3rd, 2012 at 04:43 am 1330749819
March 3rd, 2012 at 03:20 pm 1330788052
Enjoy your refund!
March 3rd, 2012 at 03:40 pm 1330789201
Big changes in 2012 for us - #2 daughter graduates in Jun and #3 turned 17 in Feb. But I thought the Amer Opp credit goes through 2012 - I remember noting when I did my taxes this year that that credit is running course with my oldest's college years (2009 - 2012.) I better get checking....
March 3rd, 2012 at 03:43 pm 1330789437
http://www.irs.gov/newsroom/article/0,,id=205674,00.html
March 3rd, 2012 at 03:53 pm 1330790032
I can't seem to post a comment with the irs.gov link, but if you google the credit's name, you'll find the IRS link.
March 3rd, 2012 at 04:42 pm 1330792972
Little Gopher: Glad to hear it! I might have heard her wrong....I thought she said at the end of 2012 is when they will make the decision...who knows what will happen....seems like they are always changing things up....