Why is Oklahoma State Refund so small?

Submitted by Cyber_Nietzsche t3_11dxe9t in personalfinance

Sorry. I'm not knowledgeable about how taxes are calculated. I've been using FreeTaxUSA to do my taxes.

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Does Oklahoma typically give such small refunds?

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2021 2022
FEDERAL ADJUSTED GROSS INCOME (AGI) 37,759 47,899
OKLAHOMA ADJUSTED GROSS INCOME (AGI) 37,759 47,899
STANDARD DEDUCTION OR ITEMIZED DEDUCTIONS 6,350 6,350
EXEMPTIONS AMOUNT 1,000 1,000
OKLAHOMA TAXABLE INCOME 30,409 40,549
OKLAHOMA TAX 1,142 1,736
NET OKLAHOMA TAX 1,142 1,736
TOTAL PAYMENTS AND REFUNDABLE CREDITS 1,235 1,770
Oklahoma Income Tax Withheld 1,235 1,770
TOTAL OKLAHOMA REFUND 93 34

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Comments

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93195 t1_jabd1rv wrote

No state “gives” refunds. You pay taxes. If you withheld a lot too much, you get a big refund. If you withheld a little too much, you get a little refund. If you didn’t withhold enough, then you owe them more.

You withheld a little too much and got a little refund. That’s what your goal should be. Congrats. You did it right.

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croninsiglos t1_jabd1zc wrote

Your refund would be higher if you wanted them to hold on to more of your money throughout the year as an interest free loan. Is that what you want?

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Cyber_Nietzsche OP t1_jabdhd5 wrote

I think I get it now. Thanks for the reply.

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Budge9 t1_jabeb81 wrote

When your employer pays you, they withhold a certain amount from the check to pay your taxes. You have some control over how much by submitting a certain form (w-4?). You get a refund when they withhold more money than you actually owe in taxes (including credits and deductions). The poster above is saying that your taxes are only due in April, so if you’ve paid the government too much (through your withholdings), then you’ve given them a loan until April for free, for no interest. It’s tongue-in-cheek.

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Cyber_Nietzsche OP t1_jabew2a wrote

Am I right to guess the government uses the withheld money for developments and investments?

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93195 t1_jabgg8x wrote

Withholdings are “pay as you go”. Based on how you fill out your W4 regarding dependents and other income, your employer withholds a certain amount of taxes from each paycheck and sends it to the government. Withholdings are just an estimate.

After the year is over when you go to file your taxes, you settle up. Too much withheld, you get a refund. Too little withheld, you owe more.

Yes, the government uses your tax money for infrastructure, social programs, services, schools, and anything else the government provides. They don’t invest it as much as spend it.

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MarcableFluke t1_jabd3z5 wrote

You realize a low refund just means you were accurate on your withholdings, right? Like a low refund is desirable because it means you aren't loaning the government money throughout the year.

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Mysunsai t1_jabd0un wrote

Because you paid the correct amount of taxes instead of overpaying.

A refund is not the government saying “hey, thanks for paying your taxes, have some free money.”

A refund is the government saying “your total is $15.69, you paid with a $20, your change is $4.31.”

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bx10455 t1_jabdf9n wrote

$34 and less is the goal. I finally got my federal down to $3.

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Cyber_Nietzsche OP t1_jabdlfo wrote

Thanks so much for the replies. I'm here to learn. Your explanations shed light on my confusion.

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