Tax Refund Plans

[DaddyTorgo]

Anyone else getting a tax refund and have a fun plan for it? I'm thinking of spending some of it on the like ~$200 in books I have in my amazon shopping cart. As for the rest...hmmmn I'm not sure.

[Swaggs]

Wife and I actually opened a savings account with it, so we wouldn't blow through it and wonder what happened to it in a few months.

[finkenst]

yep.. getting a tax refund...

paying state taxes with it...

then probably gamble the rest of it way

[JimboJ]

Got mine back in February and I'm saving it for a summer vacation.

Why do people getting refunds wait til the last minute to file? Doesn't the government get to keep your money interest free long enough as it is?

[wade moore]

Already bought a Lawn Tractor with mine...

[Ksyrup]

Got mine in February and spent it all on car repairs that just happened to occur within a week or so of getting the money. I've got a decent bit of inheritance coming from an aunt that died which I'm sending directly to pay down my student loans.

[gottimd]

Mine was received in February and promptly "deposited" into the MGM Grand in Vegas.

[st.cronin]

Went to credit card debt.

[Balldog]

Pay off some debt and save some for security deposit at a new apartment, so I don't have to live with my p.o.s. roomie.

[Flasch186]

Originally Posted by Balldog

Pay off some debt and save some for security deposit at a new apartment, so I don't have to live with my p.o.s. roomie.

keep saving and buy your own Townhome or condo....but DO not get an A.R.M.

[Balldog]

Originally Posted by Flasch186

keep saving and buy your own Townhome or condo....but DO not get an A.R.M.

That is a few years down the road, I am currently going to school once I get that finished I have to wait a year to leave my current company without having to pay them the tuition reimbursement back. Right now Dec '06 would be my graduation date, with that year of waiting I am looking at Spring 2008 moving from this area...hopefully. So I do not really want to get tied down by purchasing a place to live. I should also be out of debt by that time, with exception of a minimal school loan.

[Ksyrup]

This would be a particularly bad time for an ARM. Rates will be doing nothing but going up for the next few years, I imagine.

[Balldog]

I must be having a brainfart, what does ARM stand for again?

[henry296]

Originally Posted by Balldog

I must be having a brainfart, what does ARM stand for again?

Adjustable Rate Mortgage.

Typically the rate is fixed for 5 years and then every year will adjust according to the going interest rates.

Todd

[Balldog]

Duh - had one of those on the house before I sold it.

Thanks, sorry for the threadjacking

[Radii]

tax refund went towards debt.

[Samdari]

Owed $2200.

Oops

[Peregrine]

Got it back in February, dumped it into my savings account.

[JonInMiddleGA]

What is this "refund" you speak of?

[Farrah Whitworth-Rahn]

Originally Posted by JonInMiddleGA

What is this "refund" you speak of?

Don't know, never seen one. I think it must be extinct. At least in the land of self-employed folks.

[Flasch186]

my dad just told me he owes 100K this year!!! He is unemployed right now so last year's windfall was hugely important but he'll need to find work, and has applied to several companies soon, or he'll watch the money he made go buh-bye.

[Farrah Whitworth-Rahn]

Originally Posted by Flasch186

my dad just told me he owes 100K this year!!! He is unemployed right now so last year's windfall was hugely important but he'll need to find work, and has applied to several companies soon, or he'll watch the money he made go buh-bye.

Doing some quick math in my head, your dad can afford to find a better CPA.

[Eaglesfan27]

Thanks to an excellent tax attorney, I owed over 5,000 dollars. However, I was quite happy because we thought we would owe well over 10,000 dollars. Being self-employed is really not fun sometimes. In any case, since we owed less than we had earmarked towards taxes, we spent the excess on a state of the art new computer which should be arriving today.

Oh yeah, I think I finally have my contract with Job A squared away (from my old job thread) and so once July rolls around, I won't be a contractor any longer. Therefore, perhaps there is a slim chance I'll actually get a tax return in 2 years or owe under a thousand dollars for once.

[digamma]

Originally Posted by Flasch186

keep saving and buy your own Townhome or condo....but DO not get an A.R.M.

ARM's can make plenty of sense for people depending on the terms and conditions of the adjustable rate, the length of time the buyer plans to own the home, the rate they're getting, etc.

[Subby]

I got 10 grand back...I think I need to change my withholdings.

[Farrah Whitworth-Rahn]

Originally Posted by Subby

I got 10 grand back...I think I need to change my withholdings.

This is a great site that has a little calculator tool that tells you what your withholding should be. Also has other neat calculators to anticipate what you're net check would be when you want to change your exemptions, etc.

What's even better is most of it's free.

[Flasch186]

Originally Posted by digamma

ARM's can make plenty of sense for people depending on the terms and conditions of the adjustable rate, the length of time the buyer plans to own the home, the rate they're getting, etc.

at the point of time were at Right Now....the reason for an ARM I cant even think of right now.....unless youre talking strictly investment (Flippin')

ARMS will climb faster than most pay increases and it looks more and more likely that those arms will hit their caps...which is usually 2% per adjustment, max of 6.

[henry296]

The only reason to consider an ARM now is if you think you will be in the house less than 5 years. I can lock in the first 5 years 3/8% point lower than a 30 year fixed.

Todd

[digamma]

Originally Posted by henry296

The only reason to consider an ARM now is if you think you will be in the house less than 5 years. I can lock in the first 5 years 3/8% point lower than a 30 year fixed.

Todd

Exactly. And I think that describes a lot of first time buyers.

Originally Posted by Flasch

ARMS will climb faster than most pay increases and it looks more and more likely that those arms will hit their caps...which is usually 2% per adjustment, max of 6.

If you are talking about mortgages that are adjustable from day one, I agree, but most ARMs are fixed for 3, 5 or 7 year periods. For people (and not just investors) who may not be in their homes for longer than that taking the break on the rate can mean hundreds or thousands of dollars a year. If there is a chance you are going to be in your home longer than that, it can be a huge risk, because you have to roll the refinance dice before the fixed period on your ARM ends.

(Of course, take this for what it is worth from a guy who went with a 30 year fixed.)

[CamEdwards]

Originally Posted by Samdari

Owed $2200.

Oops

me too. thank goodness for the tax deductions.. I mean twins.

[Flasch186]

Originally Posted by digamma

Exactly. And I think that describes a lot of first time buyers.


If you are talking about mortgages that are adjustable from day one, I agree, but most ARMs are fixed for 3, 5 or 7 year periods. For people (and not just investors) who may not be in their homes for longer than that taking the break on the rate can mean hundreds or thousands of dollars a year. If there is a chance you are going to be in your home longer than that, it can be a huge risk, because you have to roll the refinance dice before the fixed period on your ARM ends.

(Of course, take this for what it is worth from a guy who went with a 30 year fixed.)

HOWEVER, as the rates climb it will become MUCH more difficult for you to sell your home thus many of those people who are planning on selling 5-7 years from now might have a rude awakening as the rights will most certainly be higher.