How do you plan to spend your tax refund?
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Replies
Maybe put a down payment on a gallon of gasoline? ;-)
-- J.S.
Allready spent trying to lower credit card dept.....
I imagine that several industries would be interested in this information.
The question is an oxymoron. People who plan do not receive refunds. It is the epitomy of poor financial planning to loan the govt money without recieving compensation for use of your capital.
Welcome to the
Taunton University of Knowledge FHB Campus at Breaktime.
where ...
Excellence is its own reward!
And a real oxymoron for those of us sole props. When was the last time the overpayment was so big it dwarfed the next qtly est.?
This April 15th will indeed suck.
Damn those good years.A great place for Information, Comraderie, and a sucker punch.
Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
i couldn't agree more, i pay the govt on 4-15, there is no refund unless there is a mistake!
Yep - In what other venue are people willing to pay a billl in advancce and then trust that the entity will refind any excess and not pay us for the use of our money?it is absolutely insane for people to think they are actually "getting" something special when ...never mind. I'm going to get worked up over something I can't change.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
Piffin
I'm with you, why loan your money to someone that isnt going to give you anything for the privilege of using it, hell thats what friends are for!
On the flip side though, how many of these people that cant figure out how to minimize the amount that they're willing to "lend" the gov would they actually be saving? Hell for some this is their only savings plan! Interest or not, savings of anykind is good. At least they got some once a year. <G>
Doug
"Hell for some this is their only savings plan! Interest or not, savings of anykind is good."
Good point. Unfortunately, somewhere along the line, people in this country have forgotten how to save. And how many people getting refunds will be putting that cash into even a low-interest savings account?
The very nature of the query here implies that would never be the case. Spend, spend, spend.
The good news is the poll results overwhelmingly show that folks here don't give the government no-interest loans.
Allen
But they sure will charge you interest.
Somehow my taxes went up this year for several reasons, and I have to send about a $1900 check. Since this is more than 10% of my taxes, I will also be paying an interest penalty of over $100!
To soothe my feelings of anger over my annual dance with the IRS, I bought myself a PC drywall sander and vacuum for nearly $1000. I feel better now.
Double check your rules. It has been awhile (we're talking 20 years) since I had a large discrepancy, but as I recall the first time a problem like that happened you didn't have to pay the interest penalty, because it wasn't something you could predict. Can't remember what the details were though.
Like was mentioned above, take a look at the rule book. If you're self employed and have sent in your qtly based on the previous years income, there is no penalty nor interest for underpayment. You just pay the tax due for 2006. A great place for Information, Comraderie, and a sucker punch.
Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
Thanks. I'll check into that. I just assumed that I had to pay.
Listen to me:
Never, never voluntarily pay any penalty up front.
You wait until billed. Many times there is no bill. And you have no idea about how that agent's good mood is that day.
Now repeat. Over and over until it stays in your head like a bad song.
I will never voluntarily pay a penalty. --- Gotcha!
But...but....but.... your taxes went UP?????
But Shrub REDUCED taxes!!!!! Oh, never mind..................
Believe me, I had the same thought!
I agree with you in principle. But the reality isn't always so clear.Let's say this year I have them take a lot of taxes out, and I get $1,000 back as a refund.So I take your advice, and cut back on what they take out of my check. So next year at the end of the year I get nothing back.So what have I really gained? The small amount that my paychecks have increased by just dribbles away over the course of the year. I've heard the theory a million times that you should reduce your withholding and invest the difference. But who has time to mess with stuff like that?If you did invest it in something like a passbook saving account, the interest would likely only be about $20 a year anyway. Unless you get a rather large refund, you aren't likely to get enough to be worth setting up a CD or putting it in a mutual fund..One other point to consider is that I look at a refund of some kind or another as a sort of "insurance". One year I got burned really badly on taxes when I had some income from a 2nd job. When tax time came around it was a HUGE struggle to come up with the money, as we'd just had a baby and DW wasn't working. I don't want to get stuck like that again. My side work varies a lot from one year to another, so tax planning is difficult.So I don't try to get a huge refund - But I want to make sure I get one.
To have a friend, be a friend.
You make some good points and what it indicates is that at least you ARE planning, even if you plan differently than I do, but you are doing it.My emphasis is one the majority of people who arelike sheep being sheared and don't even realized how they are willingly being led about when they do have the choice to plan as you do.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
"I've heard the theory a million times that you should reduce your withholding and invest the difference. But who has time to mess with stuff like that?"can you do Savings Bonds at work?
bobl Volo, non valeo
Baloney detecter WFR
"But when you're a kibbutzer and have no responsibility to decide the facts and apply the law, you can reach any conclusion you want because it doesn't matter." SHG
Nope. A 401K plan is all we have.Don't savings bonds have pretty lousy rates?
According to a recent survey, men say the first thing they notice about a woman is their eyes.
Women say the first thing they notice about men is they're a bunch of big fat liars.
"Don't savings bonds have pretty lousy rates?"I don't know what the rate is, but it means uncle doesn't have your money. IIRC bonds can be cashed in after 6 months.
bobl Volo, non valeo
Baloney detecter WFR
"But when you're a kibbutzer and have no responsibility to decide the facts and apply the law, you can reach any conclusion you want because it doesn't matter." SHG
"it means uncle doesn't have your money."Actually, Uncle DOES have your money, but you have officially loaned it to him in the form of a contract when you buy a bond. The other way, you are just saying, "Sure thing Unk - use my money as much as you want!"
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
picky picky
bobl Volo, non valeo
Baloney detecter WFR
"But when you're a kibbutzer and have no responsibility to decide the facts and apply the law, you can reach any conclusion you want because it doesn't matter." SHG
LOL, you talking 'bout me or my nose?
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
Savings Bonds * › EE Bonds: 3.60% fixed
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* Rates effective through April 30, 2007. New rates will be posted May 1, 2007.
bobl Volo, non valeo
Baloney detecter WFR
"But when you're a kibbutzer and have no responsibility to decide the facts and apply the law, you can reach any conclusion you want because it doesn't matter." SHG
The trick is to cut close enough without having to pay.
wifes got it all spent on who knows what..though Id like to get some nice patio furniture
View Image "We fight not to enslave ,but to set free"
Thomas Paine
Landscaping this year - it's been ignored for a few years during the remodel and last year's fat IRS payment (argh!). Just bought 5 bills worth of controllers, valves, sprinklers,.....
The best plan is to delay paying your taxes as long as possible.
Those who are self employed have a great advantage over those who work for wages.
--- The best plan is to delay paying your taxes as long as possible. ---Yup.--- Those who are self employed have a great advantage over those who work for wages. ---Nope. At least not in this respect.The self-employed have to pay estimated taxes quarterly, based on your estimated income for the quarter and how much tax was owed the previous year. You can be fined for underpayment of the quarterly estimated taxes, even if your total payments for the year turn out to be about right.If you are an employee and have taxes withheld, your withheld taxes are totalled as a lump sum for the whole year -- you could fill out a W4 at the beginning of the year and list a huge number of exemptions to minimize your withholdings, then closer to the end of the year fill out a new one and list 0 exemptions and request additional withholding to come out close.Caveat - I'm not an accountant or a tax lawyer, this is just wnat I remember from filling out the forms in the past - both for myself and for my fiance, who is self-employed.Rebeccah
The self-employed have to pay estimated taxes quarterly, based on your estimated income for the quarter and how much tax was owed the previous year. You can be fined for underpayment of the quarterly estimated taxes, even if your total payments for the year turn out to be about right.
Rebecca,
Here's my disclaimer-I've signed all the returns I've sent in, and being self employed since the early 70's-that's alot of returns. Notice I said signed.
The qtly est tax I believe, is based on the previous yrs tax owed. And it is possible without penalty to underpay your qtly est. if you think (AND it turns out) your taxable income is less than the previous yr. To my knowledge (never told different) you can adjust the qtly est. amount however you see fit-provided you do not make more in the current taxable year.
But then again, this from a dumb carpenter.A great place for Information, Comraderie, and a sucker punch.
Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
IIRC there are at least 2 safe harbors.1. Paying in as much as your tax liability from last year.2. Paying in 90% of the your tax liability from this year.There is an overriding required to pay in more if you have a huge (don't remember how much is huge) increase over last year.But if you have a decrease you can pay in less.There is a 3rd one. The amount of taxes due on April 15 is less than a certain amount ($500???).IIRC this can get tricky as you have to look at the right lines about how they are affected by things like tax credits..
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
"--- Those who are self employed have a great advantage over those who work for wages. ---Nope. At least not in this respect."While I am not a tax professional, my wife and daughter are both CPAs.There are a several safe harbor provisions for withholding. All are available to both those who work for wages and the self employed. The advantages that the self employed have are several.They can adjust their income to a greater degree. In particular, inventory and tool purchases can be used to adjust income. In addition, personal benefits can be adjusted to get the maximum tax advantage.They can also adjust their withholding more easily. Many self employed clients adjust their withholding (quarterly payments) with each payment by computing their tax obligation to that date.
fine is not the right word for underpayment. a fine is levied as punishment for criminal behaviour. There is a modest pfee called I believe, a penalty, along with interest that is often less than bankl LOC rates. My accountant pointed out once that it is cheaper to pay the penalty and interest than to pay up front and not get paid for use of my money as long as I keep my money in play earning for me.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
The last time I got a refund was about twenty-five years ago, when working people still had some decent representation in Congress. That was the last year for things like income averaging and tax-free benefits.
That year I did use the refund for a two week vacation. Went to Orlando, found a campsite, then visited the amusement parks and played one round of golf. That was the first year I was able to go to Florida during the winter without taking my tools. Not that I don't like working vacations, just that it was nice to have a choice. Went from wood butcher to turf terrorist. From "four" to "fore".
We generally put ours in savings util they have to go towards our property taxes.
Experts say 86% of people who watch pro wrestling on TV think it's real.
This explains why Wile E. Coyote gets so many 'Get Well' cards.
It's a good year this year, I only have to pony another $225 to Unc' Sugar before te middle of April.
I keep hearing all these outfits that want to help me spend my refund--wonder how many would pony up a couple hundred <g> . . .
Being a fair example of an aging hippie, "commie pinko " subversive, anti-war , anti-bush but support the troops kind of person.....
I will try to find some veterans organisation that is actually doing something for the human beings I support.
It might make up for some of what the flag waving republican neo-cons, anti goverment involvement Rush listening to Patriots have managed to short them of.
Oh by the way , you are all , regardless of your political persuasion invited to join me in doing so.
What's a refund?
Taunton is going to refund me what I paid in taxes??? Excellent!!!!!
Direct deposit or snail mail?
Drinks on me for the whole house 8^)
I'll wind up paying my state taxes with it same as I've done for the last two decades..
Yeah, I'm going to use my refund to upgrade our kitchen appliances--buying a new toaster oven for $19.95!
If you are serious about a new toaster oven, I got my wife the DeLongi convection one for Christmas. We had the non-convection one for years, and the toast timer got a little fritzy. A bit more than $19.95 (around $125 I think) but it is a beaut! She loves it.
I just bought a Sunbeam for $9.95! It takes over five minutes to make light toast! I don't think it will be with us much longer! Such appliances seem to be getting worse and worse in terms of quality and features.
Bought a Panasonic microwave oven last fall and already the plastic over the control buttons has bubbled, plus it is harder to use than our old one. I wanted one with a dial timer, but wife said she couldn't understand how it worked, and I know from past experience that she is bound and determined not to learn anything new (still cannot understand how to set the alarm clock I bought that sets itself every night from a radio signal from Denver--I got it because she was afraid of missing work if we had a power failure with the old one--this one resets itself after a power failure, so it's alway "on time" and it usually sets itself for daylight savings time (though it didn't this last time--maybe because they moved it up a month).
Bought a Panasonic microwave oven last fall and already the plastic over the control buttons has bubbled,You are supposed to peel off that plastic, it is a shipping protection....Wars of nations are fought to change maps.
But wars of poverty are fought to map change.
Thank you! I wondered about that, but wife insisted that it was supposed to remain on it and I didn't look that closely--sure, blame it on the poor wife!--anyway just pulled it off and it really improved the appearance! Ok, so Panasonic is pretty good--though I bought it for the inverter that is supposed to defrost without cooking what you are defrosting and it still cooks the edges, but not as bad as the old microwave I had.
When you are self employed, if you have a refund coming, you have not estimated your taxes very well.
And, if you do have a refund, you would normally apply it to next years taxes, and not have to pay much, if any, on your first quarter estimated taxes.
Bryan
"Objects in mirror appear closer than they are."
Klakamp Construction, Findlay, Ohio
Edited 3/19/2007 8:58 pm ET by BryanKlakamp
with three younguns at home, we finally pay off 10 years worth of college loans that my wife has been paying on forever. I finished paying my two oldest lkds last year
I always plan to get a small refund, though it doesn't always work out that way with variable income and deductions.
In any case, the refund always goes in the bank; I don't spend it.
The only thing we seem to be refunding is this lame war in Iraq!!
"When you point your finger, you got three long fingers pointing back at you". Mark Knophler
http://WWW.CLIFFORDRENOVATIONS.COM
another great question for the self employeed business owner crowd!
why not just jump to the chase ...
Next Poll Question ...
Which contractor will U hire to complete your latest DIY project?
There ... that'll hit the target market faster.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
Daughter's wedding, and then some
Big flat screen T.V. 46" LCD. Building the millwork for it now! Already have the "lazy boy" chair, its the "Spinemelter 2000"
Refund? You mean some people don't have to pay more on tax day? What a concept!!!
Set aside to pay land taxes.
Recently, I've noticed lots of new toolbelts, snips, hammers, and toolboxes around most jobsites.
There has to be a small spike in the hardware buisness around refund time.
I wish I had a reason;
my flaws are open season
Actually from what I have been told by a tool salesman is that there is a sizable spike in tool sales this time of year. New guys trying to tool up for the coming season, guys spending their returns on large purchases ($1000+), and guys spending their returns on items they wore out over the last season. The only other time there is a spike other than in late march thru early may is at the end of the year at Christmas and then guys trying to reduce their tax liability by spending profits on tools (wish I could do that).
Most of my guys that recieved refunds went out and purchased something new in the last month or so...
We got our returns back and I owe ~2500.. this year... bummer. Apperantly the wife's HR department slipped up and did not read the with-holding box she checked correctly.... I told her to tell them they owe the taxes... They didn't go for it.
The best part of the whole thing is when I told we owed she was on the way to the Mall, I told her to tread lightly today and why, she instantly started to find ways to blaim me for this...
On the flip side I'm going to buy myself a new tool to make myself feel better... The logic works out somehow I'm sure.
I'm thinking maybe a trip to Tahiti..... Gee THANKS GW !!!!!!!
Most of my friends however, make less than $250,000, so...... they didn't get any of GW's largess!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Is this a great country or what!!!!!
Really, How do you guys come up with this crap?
http://logancustomcopper.com
http://grantlogan.net/
"We have enough youth, how about a fountain of smart?"
i haven't sent mine in yet, so I don't know what the government is going to use to pay all your refunds!
I owe the IRS
In spite of trying to plan well, somehow I ALWAYS (at least for the past 10 years or so) seem to find myself writing a check to the "US Treasury," neatly stapled 5 or more times to the rest of the stack! Such is life, I guess, in the land of the free (and illegal alliens - - - the operative term being ILLEGAL), and the home of the brave. . .
Just remember this: A "FINE" is a "TAX" for doing bad, and a "TAX" is a "FINE" for doing Good! Go figure . . .