What's your tax return getting used for?
Thread Starter
|
Member
Joined: Dec 2010
Posts: 98
Likes: 0
Indeed, the best thing to do is to adjust one's withholding so you pay in when you file your tax return...and the pay-in amount is just below the amount that triggers IRS penalties for under-withholding.
Of course, that means you have to be saving up for that payment during the year...but you're getting interest on that $$ vs. letting the Feds have the use of it for free. For small refund amounts it's maybe not worth the trouble, but for a refund big enough to buy a new truck with, you could have earned several hundred bucks of interest on that money.
To each his own.
Senior Member
Joined: Aug 2009
Posts: 333
Likes: 0
From: Ogden, UT
how do you guys calculate what you are actually getting back? or at least get a good idea... i just bought a house at the begining of december and people say i can write of the closing cost... so does that mean whatever the closing cost actually were i overpayed that much? just kind of curious... but if i get anything back i might upgrade my edge which i have been putting off for 2 years and get new windows for the house, cause single pane windows are a joke... had 1/2" ice on the inside the other morning... also will be accepting donations from you guys 
haha
haha
Senior Member
Joined: Apr 2010
Posts: 1,106
Likes: 0
From: Milwaukee
how do you guys calculate what you are actually getting back? or at least get a good idea... i just bought a house at the begining of december and people say i can write of the closing cost... so does that mean whatever the closing cost actually were i overpayed that much? just kind of curious... but if i get anything back i might upgrade my edge which i have been putting off for 2 years and get new windows for the house, cause single pane windows are a joke... had 1/2" ice on the inside the other morning... also will be accepting donations from you guys haha
haha
Senior Member
Joined: Apr 2010
Posts: 1,106
Likes: 0
From: Milwaukee
you're letting the government hold on to $5500 of your hard earned money with no interest that you could be putting into a high interest savings account, CD, money market, or something and earning interest on yourself.
instead, you are dumb enough to fall into the 'instant gratification' of the whole tax return thing. please tell me the rest of the money you are using to buy your truck isn't sitting in a big mayonnaise jar in your basement... and is at least earning you interest in some way...
Senior Member
Joined: Nov 2004
Posts: 653
Likes: 0
From: Knoxville, Tn
The little one is due end of July/begining of August. Trying to save as much as possible now, so when he/she comes along and the wife is home for awhile, it won't be too bad...we find out in April if it's a boy or girl.
Senior Member
Joined: Jul 2008
Posts: 802
Likes: 0
I get a good return every year. Yes, I know the entire argument for breaking even, but my thought is that they change the codes every year and I never want a surprise bill. This year will be to pay off all of our credit card debt. Maybe new tires or a gun. I also get my bonus in march so that goes into savings.
Senior Member
Joined: Jul 2007
Posts: 3,291
Likes: 0
From: Beaverton Or.
I used to claim 0 to get a good return at the beginning of the year. It was like banking/savings. And would always make plans for it. But, things have changed. I either break even or owe give or take $100
Senior Member
Joined: Sep 2005
Posts: 3,017
Likes: 2
From: Decatur,AL
I usually don't get much back so I'll just stick in my pocket for a rainy day.
Pretty sure the title of this thread was "What's your tax return getting used for?", not "Please give me unsolicited tax advice".
Technical Article Contributor
Joined: Apr 2009
Posts: 1,080
Likes: 0
From: Paintsville Ky.
I am gonna chime in here, I normally get back 900 to $1,100 each year. I know some of you guys are advocating adjusting the way a person files to not pay in anything or get back very little.
The thing is, I get paid 26 times a year, and for simplicity lets say that I get $1,200 back each year.
Thats $47 (Rounded) per check that I would be getting upfront instead of waiting all year.
I have checked every bank between the house and work (I drive 23 miles one way) looking for the best rates on a CD or savings account.
Most are under 2% (if that) and even the savings account we have now is (I think) under 1%.
Its just not viable for me to file my taxes that way, even if I saved the starting $100 and then opened a cd or something for a years time and put a years worth of $47 in it, how much ahead would it really be? over just waiting at the end of the year.
Besides, I am far more likely to buy something stupid with it every now and then.
I would much rather just "give it" to the gooberment and get it back later when its in a amount that I can use for something.
I could see if a person was getting back $3,000 or better, then adjusting the way you file might be a good idea.
My wife got back around $1,500 last year and I am hoping for a combined return to a bit over $2,000 between both of us.
I plan on using that to do some work on the truck and paying one or more bills off.
The thing is, I get paid 26 times a year, and for simplicity lets say that I get $1,200 back each year.
Thats $47 (Rounded) per check that I would be getting upfront instead of waiting all year.
I have checked every bank between the house and work (I drive 23 miles one way) looking for the best rates on a CD or savings account.
Most are under 2% (if that) and even the savings account we have now is (I think) under 1%.
Its just not viable for me to file my taxes that way, even if I saved the starting $100 and then opened a cd or something for a years time and put a years worth of $47 in it, how much ahead would it really be? over just waiting at the end of the year.
Besides, I am far more likely to buy something stupid with it every now and then.
I would much rather just "give it" to the gooberment and get it back later when its in a amount that I can use for something.
I could see if a person was getting back $3,000 or better, then adjusting the way you file might be a good idea.
My wife got back around $1,500 last year and I am hoping for a combined return to a bit over $2,000 between both of us.
I plan on using that to do some work on the truck and paying one or more bills off.