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I know this is an old thread, but maybe someone will come across it like I did.
I'm not sure about the taxes in NJ, but in California we have our own separate income tax as well. So here is one scenario where A refund this large can occur.
A person who earned about $53,000 and claimed 0 allowances on his W-4(meaning the most money is withheld from his paycheck throughout the year) and filing as head of household with one child, would receive nearly a $7,000 refund between the federal and CA state returns, without taking any deductions other than the standard deduction. A few things like childcare expenses, IRA contributions or student loan payments could increase that refund a bit more. Also since this $10,000 amount is from the friend of a friend we can probably assume it was slightly exaggerated.
AS far as the person on unemployment. It's likely she made even less than $20,000 working part time at a sub shop. Simply claiming the standard deduction and one child would wipe out all tax liability. Additionally, it's likely she had withholding from both her work and the unemployment perhaps around $2,000 to $3,000 all of which would be refunded. Secondly, she would receive the $1,000 child tax credit which is given to you as and additional refund if you have no tax liability. And Third, she would get the EIC for low income families. If she made about $15,000 at the sub shop, this credit would ad an additional $3,000 to her refund. All together that's $7,000 refunded. Some state refund and the possibility of some other deductions could increase that amount.
In the majority of cases, when you hear about refunds in the high thousands, it is a result of excessive withholding throughout the year.
Ok was speaking with a friend who has a friend who filed taxes with H&R block,her and her boyfriend are getting $10,000 back each. they live together not married have one child together and she has a child from previous guy. she is on unemployment she claims one kid age 16 her boyfriend claims the other,2 years old. he makes about 53,000 working for township,they dont own a home they rent, they file seperatly. they are each getting back $10,000 they said H&R used alot of deductions i dont see what they could have deducted. My husband and i make together $55,000 and we own and deduct taxes and interest,we have 1 child age 13 and we get hardly anything back. how is it possible they could get that much back? Im sure sooner or later they will get audited.
Old post.
I think the question is are they doing their taxes honestly. From the third hand fact they can not be or the facts are distorted.
I do not think H&R would add deductions that the tax payer did not tell them to add. I am guessing that H&R does not quiz then on the deductions they say they are entitled too or the amount. I could see H&R asking do you have this or that deduction. That is part of their job. I assume the answers were not true.
For Example a head of household single person earning 55,000 would pay about 6,000. Thus he would have paid in about 16,000 in withheld taxes. That is about a 30% rate. Don't think this would have happened.
Also seems strange that each is getting 10,000 with different earnings.
I think you have to say the OP just had a lot of bad facts given to her.
Hi, I was hoping someone in the know could answer this question since it is so hard to get through to a live person at the California Unemployment Office.
I moved to Portland, OR from California in January 2015. Just yesterday I received my 1099G form from EDD for filing-the form states the "income" I received from California UI (direct deposited to my bank account), but I lived in Oregon the entire time.
Does anyone know if I file in California or Oregon? Thank you so much.
In my experience, people exaggerate or even just lie.
I had a SIL who was always trying to get attention in small and stupid ways. At a wedding once I heard her tell someone she and her husband had spent $400 on plane tickets to the wedding. There was no particular response to this news. A little while later, I heard her tell someone else they had paid $700. She got an 'Oh' in response. A little while later, she told someone else they had paid $1000. What did she have to gain by this? IDK. It sounded like childish one-up-manship to me.
I never trusted her word again.
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