What are you spending your tax return on?

[CameronJr9]

What are you guys and gals buying this year with your tax returns, or are you saving for a rainy day?

Personally, I want to save for my vacation this summer, but I think we all know that some of that money will be spent on the car.

[twistedframe]

i'm doing the same thing, well actually i'm saving it for my 21 b-day in may.

[Cookstar]

[Darkhorse]

It all went towards the downpayment for my new GGEX.

[Celcius]

Going towards my car. All my money gets poured into my car.

[8thgenuser]

Tax return? What tax return? I owe federal $1,400. I do get $60 back from the state, though.:rolleyes:

[Janizary]

I try to never get money back, either get just a little or owe just a little. Enforced savings through paying to much in taxes is not a "good thing". Rather have that few thousand earning interest over the course of the year, rather than spending its time time with the government. Better to manage your withholding...unless you just cannot save money otherwise.

[OblivionJin]

Car first. Gf second.

[John2009]

Originally Posted by Janizary

I try to never get money back, either get just a little or owe just a little. Enforced savings through paying to much in taxes is not a "good thing". Rather have that few thousand earning interest over the course of the year, rather than spending its time time with the government. Better to manage your withholding...unless you just cannot save money otherwise.

Amen. If you get a large return you screwed up a year ago.

[CameronJr9]

Originally Posted by Janizary

I try to never get money back, either get just a little or owe just a little. Enforced savings through paying to much in taxes is not a "good thing". Rather have that few thousand earning interest over the course of the year, rather than spending its time time with the government. Better to manage your withholding...unless you just cannot save money otherwise.

Care to explain a little more indepth? I'm quite the saver. I'd like to at least know what you're talking about...

[Celcius]

****. I ended up owing instead of getting a refund. 500 gets taken away from my car funds.

[NightKidsGTR]

I owe the state $7...but I'm getting $200 back from federal. Dunno what to spend it on yet...

[sbigshot]

Originally Posted by Janizary

I try to never get money back, either get just a little or owe just a little. Enforced savings through paying to much in taxes is not a "good thing". Rather have that few thousand earning interest over the course of the year, rather than spending its time time with the government. Better to manage your withholding...unless you just cannot save money otherwise.

I have never understood why people get so excited over a tax refund?? The government has just kept YOUR money for an entire year without paying you one dime in interest ... and then most people pay a tax preparation service to get their money back!!
Janizary's point is a good one ... if you can work it out where you are "even steven" at year's end, you are much better off financially (if you invest the money)!!
I got some back & it went straight into a mutual fund!!!

[waross]

What tax return?

[CHRIS]

Im getting roughly $1600 altogether back, i just feel bad cause my g/f works twice as hard as me and she owes $157. with that said she would probably kill me if i spent it on my car, maybe i'll pay off what she owes??

[etf]

I overpaid my taxes this year for the first time in a long time. I hate making interest-free loans!

[Janizary]

Originally Posted by CameronJr9

Care to explain a little more indepth? I'm quite the saver. I'd like to at least know what you're talking about...

Cameron, you can manage your withholding by estimating your taxes based on either prior year, or current year expected earnings. For example, if you made X dollars last year in earning, claimed Y dollars in itemized (or standard) deductions, and ended up getting $2,000 back as a tax refund at the end of the year, you are having too much in taxes withheld from your paycheck. Going into the next year, if your income remains relatively the same, and your deductions the same, you have a good estimate that you will (in most probability) be getting another sizable refund.

You can manage this by claiming an additional exemption, and/or by changing the marital status on your W4. For example: if you currently claimed Single/Zero, you could reduce the amount of taxes taken out by changing that to Single/One. If you were currently at Single/One you could change to Single/Two. Alternately, you could change to Married/One, etc. (It does not matter for the purposes of your W4 if you actually are married or not, it just changes the percentage withheld)

Basically, if you are getting a refund at year-end, that is the excess amount of money that was withheld from your paycheck over what should have been taken out if you had been appropriately estimating your income and estimated taxes. This is money you should have had at your disposal through the regular course of the year, instead you have been providing the government a nice interest free loan. How nice of you :)

For some folks, however, the 'tax refund' has become either an annual 'party time', 'toy time', or the only way that they can save money.

I wish I had problems with refunds. Once you get to a certain point, you end up having to worry more about making sure you have paid enough and claiming less exemptions AND having additional dollars taken out of your paycheck towards taxes (which you can request be done on your W4 to ensure you don't end up with a giant TAX BILL at the end of the year).

[CameronJr9]

Thanks Janizary. I'll definitely take this into consideration.

[Janizary]

Hey, who made spinning tiger boy a moderator? Ye gods and little fishes, the apocalypse is upon us!!



j/k!

[CHRIS]

theres a secret race between cameron and skittles for top posting spot. soon the replies will be like this:

Cameron: hey
Skittles: hey
Cameron: guess
Cameron: what?
Skittles: what
Skittles: ?
Cameron: i'm
Cameron: winning!



lol