Posted on Feb 13, 2015
Are other reservists surprised by a small tax refund?
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This kind of question is geared towards my guard and reserve counterparts with civilian jobs who do the minimum 1 weekend a month/2 weeks a year:
So this is my first year filing taxes that include my pay from the military. Last year I made a nice chuck from my refund for just my civilian job.
This year I started earning Drill Pay in January so I had one full year with the military. However I was not at my civilian job for 6 months because I was on active duty orders for training.
As I'm entering my W-2s over and over again, my refund is definitely not what I expected it to be. If I only entered my civilian W-2, I'd be satisfied with my total refund.
Does anyone else get a small refund working as a reservist?
So this is my first year filing taxes that include my pay from the military. Last year I made a nice chuck from my refund for just my civilian job.
This year I started earning Drill Pay in January so I had one full year with the military. However I was not at my civilian job for 6 months because I was on active duty orders for training.
As I'm entering my W-2s over and over again, my refund is definitely not what I expected it to be. If I only entered my civilian W-2, I'd be satisfied with my total refund.
Does anyone else get a small refund working as a reservist?
Reserves
Taxes
Drill
Posted 9 y ago
Responses: 6
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A small tax refund is not a bad thing.
Think about what that refund is - it is the money you overpaid the government over the course of the year. Basically, you are giving Uncle Sam an interest-free loan. Uncle Sam thanks you for your charity.
I for one want to play it as close as possible. Typically, I try to pay in at the end of the year, withholding just enough to avoid a tax penalty.
Don't worry, the US Government will get theirs.
Think about what that refund is - it is the money you overpaid the government over the course of the year. Basically, you are giving Uncle Sam an interest-free loan. Uncle Sam thanks you for your charity.
I for one want to play it as close as possible. Typically, I try to pay in at the end of the year, withholding just enough to avoid a tax penalty.
Don't worry, the US Government will get theirs.
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A small tax refund just means that you didn't pay too much in taxes during the year. You can always try to overpay your taxes and get a bigger refund later, but I would personally just keep my money throughout the year.
The difference between your civilian refund and military refund may be that you are overpaying your taxes with your civilian employer. You should double check how many deductions you are claiming on your W-4 with your civilian employer. You may be able to lower the deductions and keep more of your monthly civilian monthly pay check.
The difference between your civilian refund and military refund may be that you are overpaying your taxes with your civilian employer. You should double check how many deductions you are claiming on your W-4 with your civilian employer. You may be able to lower the deductions and keep more of your monthly civilian monthly pay check.
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Your refund depends on how much you pay based on your income. I am married with 2 kids and have taxes withheld as if I was single. That way I have a large return that goes into kids college fund. Some people claim that if you have a very small refund or no refund your withholding is perfect and your getting the right amount each paycheck. It all depends if you want the money each paycheck, or once a year.
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CPT Zachary Brooks
Since you are putting this money into their college fund, this means that you are missing out on the accruing interest over the year's time that the government is borrowing this money from you interest free. If you wish to save more effectively for your children it might behoove you to change your withholding and budget out some money each month into their accounts (possibly automatically) to ensure you are getting more interest in the long run.
The difference in the total after 20 years will be significant.
The difference in the total after 20 years will be significant.
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2LT (Join to see)
I do have an ESA that I I contribute to monthly for them that I max out each year. I should've been more specific. That money is used for the kids, we jut don't budget it in so its a surprise each year if you will. They're college savings with the ESAs are in mutual funds that have been doing pretty well. But I do understand what you're saying.
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