Uncle sam paid me $8000 for buying a house

 

True.

See my post # 10.

https://www.f150online.com/forums/ge...ting-bill.html

 

Getting a refund is new to me, but it is nice. True, I could now change my withholding to offset this and not get as much or anything for this year. But, the refund allowed me to pay cash for a new Mustang, so I'm not complaining.

pinepapple,

I read an article yesterday that 20% of those who claim the first time buyer credit on a house get audited now. Save those real estate documents!

 

What is your reasoning for this? Just curious not judging. But since you put it out there I have to ask.

 

At the end of the day, there is a figure due Uncle Sam.
If you pay on Apr 15th then you have in effect floated a free loan and as long as it doesn't exceed 10% of the total tax bill there is no penalty.

The other way could be looked at as forced savings at 0%.

Uncle Sam refunds about 7 billion dollars each year.
Even if Uncle only earned 2% on this holding, that would be about $140 million in interest.

Of course Uncle Sam spends $140 million about every 9 seconds.
So I guess a 'refunder' could call themselves patriotic, as along as they say it fast enough.

 

Mainly because it would probably get spent on mods and other stuff if I had it. I carry no CC debt, max out my 401K and have 2 houses that are both worth more than I owe on them, even in this economy. I know this because I just had them both appraised not too long ago. The houses are my only debt, and I am not upside down on either. One is rented, we live in the other. All 3 vehicles are paid for also.

A very creative CPA does my taxes every year for free (family member), so nothing is missed. These returns go straight into a college fund for the kiddies (3 and 6). Wife stays at home, so I am the only breadwinner. I trust her not to spend it if we had it, but the temptation would be there for both of us. Granted, I know I am losing the interest, however I'm in sales and the majority of my income is comission based. So, it also motivates me to sell more knowing that a large chunk of that money will be tied up for months with no access.

Simply put, if I had another career that paid me a flat salary annually with no commission, I would be able to budget everything out and hopefully break even on my taxes, while still saving for my kids college. But because I never know what my paycheck will be, this forces me to save money without even thinking about it.

 

Excellent response and similar to our situation. But in our case we KNOW it would get spent throughout the year so we use it as a forced savings. Then use the refund for family trips in the summer. And besides, we're only losing about 4 family (of 5) eat out nights a year at a nice restaurant in the lost interest.

My fear is we start getting IOU's from the government one of these years.

I just find it funny others judge how people handle their finances when some of those same people couldn't buy a happy meal.

 

I couldn't agree more.

 

I know you ain't talkin about me.

 

$450.00

 

Considering how pitiful the interest is on passbook savings these days, you are losing VERY little by overwithholding.

 

It's still nearly a hundred Hot Pockets.

 

Got a chuckle out of the term, passbook savings. How long has it been since you have seen an actual passbook?

 

My bank closed my account and kicked me out.
They claimed I was moving the decimal point.

I still keep it and accidently leave it laying open at niteclubs.
It's the only way I can get a date.

 

I got back what I paid in, $4400. My wife is an accountant with her M.B.A. so I didn't have to pay her anything to do them.....I just get to pay her student loans every month

Putting half in savings and doing some upgrades to the house with the rest. I need gutters, new back door, I think I am going to get some concrete poured to make my back patio bigger, and hopefully some crown molding.