Ask me how much my tax refund was

[Musashi]

"Hey Musashi, how much was your tax refund?"

Glad you asked . It came to over $2,300. Some may know that I've been telegraphing my big plans for the refund money for awhile now. But before I buy anything with it, I'm a wait for the deposits to clear and get my regular month's disposable income for February. And just maybe: there could be another boost this month as well.

But soon: I'm a get some sweet stereo equipment and show some before and after specs.

Anybody else got plans for the refund?

[Chocolatejas]

Mine was about half of what last year's was... Paying off the TV with mine.

[xtop]

my refund is going towards bills. little over a grand for me

[BStecke]

I got about 2800 . . . paying off a credit card and my MacBook.

[mgonzo2u]

My plans for every tax season is to try and have as little of my money returned to me without interest by the IRS.

Stop lending money to the government.

Set up your W-4 withholdings properly so you get your money through the year like you should and try to break even with taxes in the end.

[MadScientist]

I have to pay MORE! about $1900

[DeeChizzle]

My wife says we can use our refund, if we get one, to buy a Sony XBR. Tempting, but this is my last year in the Army so I'm trying to save up some money for my career change. Hmmmmm?

[xtop]

Originally Posted by mgonzo2u

My plans for ever tax season is to try and have as little of my money returned to me without interest by the IRS.

Stop lending money to the government.

Set up your W-4 withholdings properly so you get your money through the year like you should and try to break even with taxes in the end.

exactly. i'm always surprised when people get back big refunds and act like its a good thing lol. tho i should have mine set up better

[DeeChizzle]

Originally Posted by xtop

exactly. i'm always surprised when people get back big refunds and act like its a good thing lol. tho i should have mine set up better

I know that a refund is just money that I overpaid, but it's still a good feeling to know that you unexpectedly saved a little cash from the past year.

[mgonzo2u]

But you didn't save money from last year.

Reality is, you lost the use of your money and the opportunity to earn interest on your money during the entire year.

They are just sending you back your overpayment at their own pace laughing all the way about the fact they don't owe you any interest on that personal loan you gave them.

Ever been in tax trouble? When you own them, every penny of interest is due back them for loaning you their money + penalties to boot.

LOFL

Their money? They don't have any money of their own. They are us. Us is them. Their money is my money.

[MATTYBLU2]

it maybe easy for those to say change your w2 to get all your money during the year, but some of us live on fixed incomes and dont make tons of money like others. so to get a large check every year to cover such expenses like prebuying your oil for the next winter or using some to fix your car or buy better one, maintenance around the home, catch up on bills, etc. its a great way to save the money without missing it.

yes i know the gov makes out on it, but still what works for others doesnt work for all.

i should be getting back around $7500 this year. got 2 kids, a house, and other things to claim so i get alot back.

[Sylin]

mgonzo2u is spot on. Sure, it's nice to get that big check every year, but you gave the IRS your money for no good reason. It's also a poor, poor way to discipline yourself financially. Don't be an amateur saver, but a professional spender. That's not a plan for success.

You are allowed to adjust your W-4 throughout the year. Just do some quick research on tax brackets, then factor in your dependents and any planned charitable giving or tax-free/deferred investments.

Obviously, circumstances vary for everyone. The more diverse your financial portfolio, the trickier it can be to manage this data. But then again, if you have a diverse financial portfolio and DON'T understand how to do this, then you're being careless and it's time to learn. You really don't want to be in a position where the KGB... err... I mean the IRS is being your financial steward.

Whether you use an accountant or not, it's your task to understand your income, taxes and overall finances. That's why it's called personal finance. Tell your money what to do, instead of the other way around.

[Musashi]

I do understand what some ppl are saying here. I myself work in financial service.

In my case, it's about paying safe and being practical. I know I might be missing out on some interest, but around here, savings and interest checking accounts pay practically nothing, and I would rather overshoot my tax debts and take a refund than have to suddenly pay extra. I do invest: I've a 401 k with some free money from the company in it. Soon I'll invest a bit more too. But for now, I know what I want for disposable income, and how to use it.

[Galley]

Mine will pay off my 32" Samsung. I gotta pay it off before the interest kicks in.

[mgonzo2u]

Originally Posted by MATTYBLU2

it maybe easy for those to say change your w2 to get all your money during the year, but some of us live on fixed incomes and dont make tons of money like others. so to get a large check every year to cover such expenses like prebuying your oil for the next winter or using some to fix your car or buy better one, maintenance around the home, catch up on bills, etc. its a great way to save the money without missing it.

yes i know the gov makes out on it, but still what works for others doesnt work for all.

i should be getting back around $7500 this year. got 2 kids, a house, and other things to claim so i get alot back.

That equates to roughly an extra $600/month you should have in hand to put into a 401K, mutual funds or even college funds for both kids. Over any amount of time beyond 20 years, YOUR MONEY would have made YOU MORE MONEY than you can imagine.

[mgonzo2u]

Originally Posted by ikcizokm

mgonzo2u is spot on. Sure, it's nice to get that big check every year, but you gave the IRS your money for no good reason. It's also a poor, poor way to discipline yourself financially. Don't be an amateur saver, but a professional spender. That's not a plan for success.

You are allowed to adjust your W-4 throughout the year. Just do some quick research on tax brackets, then factor in your dependents and any planned charitable giving or tax-free/deferred investments.

Obviously, circumstances vary for everyone. The more diverse your financial portfolio, the trickier it can be to manage this data. But then again, if you have a diverse financial portfolio and DON'T understand how to do this, then you're being careless and it's time to learn. You really don't want to be in a position where the KGB... err... I mean the IRS is being your financial steward.

Whether you use an accountant or not, it's your task to understand your income, taxes and overall finances. That's why it's called personal finance. Tell your money what to do, instead of the other way around.

Excellent post

[MATTYBLU2]

Originally Posted by mgonzo2u

That equates to roughly an extra $600/month you should have in hand to put into a 401K, mutual funds or even college funds for both kids. Over any amount of time beyond 20 years, YOUR MONEY would have made YOU MORE MONEY than you can imagine.

true, but in my situation right now its hard to put anything away for anything. more concerned about keeping my house and feeding my family and paying my bills, than all the other things you mentioned. i have a 401k at work which is enough for me right now. thanks anyways for your advise, but until you know a certain persons situation you can not give the correct advise.

[Layd Dly]

Im paying off stuff i already bought cuz im impatient. ;-)

[sj001]

I'm saving a big portion of mine for a big vacation later this year. But I'm using about $600 or so to replace my ancient speaker system.

[The Don]

last year mine was about 4600...that's where I purchased my PS3 and HDTV setup...