What are you doing with your tax return?

[DC]

Re: What are you doing with your tax return?

Save your money. We are headed for dark days, and it's no time to be throwing it away by buying entertainment items.

I guarantee I'll be trolled, but I (well, more like those who have been predicting this economic collapse for years) suggest you stock up on canned foods and non-perishable items.

I would not spend your money on re-modeling your home, buying new electronics, vacations, a pool, et al. If the experts (who have not been wrong yet) are correct, the necessities are what you're going to need...not a new entertainment room.

Listen to him

[countryboy]

Re: What are you doing with your tax return?

as I do every year..

put some into savings
use some to increase my portfolio
pay for my renewal of UofL tix
buy myself something nice

[boomhauertjs]

Re: What are you doing with your tax return?

Into savings

[Dice]

Re: What are you doing with your tax return?

The transmission on my car is having major issues. So it'll go to getting my trans fixed or a down payment on another car.

[Trevytrev11]

Re: What are you doing with your tax return?

I know it's not considered income, it was advance on your 2008 return.

With me, my wife and daughter we got $1500 of stimulus money. Now on my 2008 if I was supposed to get say $2200 back that $1500 should be deducted from that.

I disagree:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/12/BUOAV0BJP.DTL

The rebates represent a 2008 tax cut. But instead of getting the tax cut next year, when you file your 2008 return, you'll get it this year.
The IRS, however, will use your 2007 tax return to determine who gets a rebate and how much.
If it turns out that you would have gotten a bigger tax rebate based on your 2008 tax return, the IRS will refund you the difference. For example, a middle-income family that has a baby born in 2008 should be able to reap an extra $300 when they file their tax return next year, Luscombe says.
On the other hand, if you would have gotten a smaller rebate based on your 2008 return, you won't have to pay back the difference, says Bob Scharin, RIA Senior Tax Analyst from Thomson Tax & Accounting.

If you notice, this is a tax cut for 08 taxes that was handed out based on 07 return information, not an advance loan on possible 08 taxes owed. Had it been an advance/loan, I could see where one would think it would go against their 08 return, but it is no different than the child tax credit or anything similar.

Remember this was advertised as a stimulus rebate (not a temporarly loan).

http://usgovinfo.about.com/b/2008/02/27/will-i-have-to-pay-taxes-on-my-rebate.htm

In addition, your tax rebate will not reduce your refund or increase the amount you owe when you file your 2008 tax return.

That money wasn't magic money that came from some tree planted in the White House rose garden. It has to be paid for some how.

Again, this is tax revenue being reduced in 08. So whatever they paid out in 07, this amount will be deducted from what they were to earn in 08. It's not money that grew on a tree, it's just money that won't be collected in 08. It's just a reduction of tax income (revenue) to the US Government.

Just so most of you know, you should be shooting for $0 for your refund. I'd rather take that money and make my own interest on it over the course of the year rather than Uncle Sam.

I do agree with this though. Any money you get back at the end of the yaer is money you could have had during the year and invested to make some interest. For those that aren't fiscally responsible enough to put this money away throughout the year, then a refund is probably beneficial. Basically a government escrow account similar to what mortgage companies do for new homeowners who may not be responsible enough to put money away each month for their property taxes and Homeowners Insurance.

If you were to get a $4,000 refund. If you split this up into monthly payments (deposits) and earned 10% interest on this money compounded monthly, you'd have made over $200 in interest.

[frostbyte06]

Re: What are you doing with your tax return?

Put it into savings, and I agree with the shooting for $0 refund, I finally got off of my but this year and have filled out a new W-4, so that my refunds aren't closer to $0.