Somebody needs to explain this to me, because I'm not too bright...

[PCIntern]

If this guy got a 5 1/2 million dollar refund, it implies that he paid the government 5 1/2 million dollars in advance. Does that mean that he paid estimated taxes totaling at least 5 1/2 million dollars? You don’t get a tax refund if you haven’t paid the internal revenue service. At least in my experience… When I ran my business, I paid quarterly estimates and then if things worked out in my favor, I might receive a check, after I filed my return as a refund. Not often… Unfortunately, however.

If I missing something, please explain it to me. I thank you in advance.

[Bettie]

1. I don't know

but I'll be watching for an answer too!

[jaxexpat]

2. If the paper you turned into the IRS looked like Trump's....

you could get what you want. Hell, nobody's gonna review them. What's the worry?

[intrepidity]

3. Ok I'm just guessing here

perhaps he carried forward losses that were generated in years when he *did* pay?

[bucolic_frolic]

4. For complex tax returns I think there are a lot of instances where refunds might happen

with little or no paid income tax. Depreciation (accelerated or not), REITs, IRA rollovers, real estate tax rebates, tax loss carryforwards on investments, selling assets at a loss or depreciated loss, just to name a few in my vague knowledge. Surely there are more.

[Bluethroughu]

7. This.

Employee payroll, investment in business equpiment...all kinds of BS like his jet, cars, their cleaning, maintenance and even his clothes.

The rich get to write-off everything, yet my husband can't write-off his concrete boots. Seriously, the tax code is rigged against workers or the working class I should say.

[lostnfound]

10. The media could do well to expose this disparity with a deep exam of trump taxes

Explaining all the kinds of deductions and contrasting it with working guys.
But of course they won’t.

Businesses get to deduct almost everything, while ordinary humans can’t even deduct medical expenses unless they exceed 7.5% of their income, or any number of other unavoidable things.

The cost of making your business look pretty with a landscaper? No problem.

Your insulin? Forget it.

[Bluethroughu]

11. Exactly.

And like another person commented, these business people show themseleves as broke on paper, but are multi-millionaire property and investment owners. They get tax credits that exceed their tax contribution to this country, which is essentially taxing the working and lower classes more.

We need to repeal the last 40 years of tax changes and use at least the 1960's tax code and rates. You'll see business investing in workers' pensions, Health care, and education or the business will just forgo the income to the government.

We had the largest economic expansion equality during the 1940-70s because the tax laws favored the investment here in the workers and the country "promoting the general welfare".

[former9thward]

5. He paid about $20 million in federal taxes in the six years that were released.

If you have business losses you can carry then back to years where you had a gain and get a refund on taxes paid.

https://www.irs.gov/newsroom/net-operating-losses

I have no idea if that is what Trump's accountant's did since I am not one of them.

[panader0]

6. The guy lies about every single possible thing that could, legally or otherwise, serve to make

or save a dollar. When that is a true place to begin, it explains most of the stuff he's done.

[ok_cpu]

8. It was reported somewhere that it was the return

of estimated tax payments during the year since he ended up owing $0. NYT maybe?

[cachukis]

9. Real estate transactions are very important to community

growth and future tax revenues. Developers have a major influence on decisions. Tax laws have evolved to maintain development in spite of losses.
trump lives in that world and without audits could play the game with impunity.
Jack Welch bragged about his $10 million dollar expense for his 20,000 page tax return. He wrote his own tax law and crowed if you don't like it, sue me.
Don't quote me, but GE was not going to be successfully audited.
TRA 86, Tax Reform Act of 1986, opened Pandora's tax return.
First time this is on the front page.
Hope it gets legs.

[SoCalDavidS]

12. I'm A CPA

You only get a refund if you overpaid Withholding or Estimated Taxes, unless you are eligible for Earned Income Credit, which he wasn’t.

[PCIntern]

14. My guess is that you know what you're talking about.

👍

[usonian]

13. I'm a CPU

He was refunded the money THAT YOU AND I PAID.
Capitalism, comrade.