What are YOU going to do with your tax return money ?

[Scott]

Re: What are YOU going to do with your tax return money ?

Im getting about 1K, gonna save some money for the iPhone 5 when it comes out, and pay off some bills.

[UNC_Pete]

Re: What are YOU going to do with your tax return money ?

Paying off my oil bill and putting the rest in savings.

Fun stuff, right?

[Bellsprout]

Re: What are YOU going to do with your tax return money ?







Woot.

[Trevytrev11]

Re: What are YOU going to do with your tax return money ?

Looking back at last year's post, it looks like I paid $1533 to the Feds. I haven't done my taxes yet this year, but I know I'll have to pay the Feds again. I need to have a kid or something to get some more deductions. LOL. Only if the dog would count...he's cost me $2000 in the past 2 weeks (ate something he shouldn't have and had a 3 day stay at the Dog ER...that damn place is expensive).

If you are not already claiming "Single -0" on your W-4 ( I know that you are married, but you can still claim single). Lower your witholdings, which will in turn have a bit more tax taken out during the year so you won't owe at the end of the year...tha tis unless you like having that interest free loan from the government through out the year.

If you typically owe $1500 a year and are paid bi-weekly (26 x a year) you need to roughly have $58 more taken out each week. You can look at the witholdings tables and see where you have to move to get there (whether it's moving from married to single or lowering your witholdings).

I went through this excersise last year after getting about $3K back and ended up getting about $300 back last year, which is about where I wanted to be...Then we had another kid this year and I am getting about $3000 back again, so I need to go back and adjust to get closer to $0.

[mjb2124]

Re: What are YOU going to do with your tax return money ?

If you are not already claiming "Single -0" on your W-4 ( I know that you are married, but you can still claim single). Lower your witholdings, which will in turn have a bit more tax taken out during the year so you won't owe at the end of the year...tha tis unless you like having that interest free loan from the government through out the year.

If you typically owe $1500 a year and are paid bi-weekly (26 x a year) you need to roughly have $58 more taken out each week. You can look at the witholdings tables and see where you have to move to get there (whether it's moving from married to single or lowering your witholdings).

I went through this excersise last year after getting about $3K back and ended up getting about $300 back last year, which is about where I wanted to be...Then we had another kid this year and I am getting about $3000 back again, so I need to go back and adjust to get closer to $0.

Good advice, but I actually don't mind having to pay a chunk in April. My theory is I'll have the money during the year to invest and make work for me and then pay in April. That way I'm in control of the money for the majority of the year instead of the Government. I know a lot of people that like to see that big refund in April, but that means they're basically loaning that money to the Government throughout the year. The only negative I see in what I'm doing is making sure I have the money to pay in April, but that won't be a problem as I keep a nice chunk of money liquid for a rainy day - or to pay taxes.

I've considered taking my taxes to a professional to find out what's best. I might do that this year as I don't have the time to run all the different options (plus I'd like someone who does this as their job to look over everything).

[countryboy]

Re: What are YOU going to do with your tax return money ?

do what I do every year, put it towards investments. Worked fairly well so far. If I average it out, I've nearly doubled my refunds each year in investments. Over the course of 10+ years, its pretty significant.

[12]

Re: What are YOU going to do with your tax return money ?

The wife and I got back nearly $4K this year, which has been nice (child tax credit FTW).

It's all going in savings, as boring as that is. We might put down some new laminate flooring in the kitchen, but that will be about it.

It's nice to see the savings account grow... It'll pay off in the future.

Okay, now for my real response...

I want to get a home gym (nothing too fancy) and a new TV...

Why won't I? Read the second word of this reply again.

She knows best and I love her, but man, I could use some new man stuff.

[ExtremeGamer]

Re: What are YOU going to do with your tax return money ?

Good advice, but I actually don't mind having to pay a chunk in April. My theory is I'll have the money during the year to invest and make work for me and then pay in April. That way I'm in control of the money for the majority of the year instead of the Government. I know a lot of people that like to see that big refund in April, but that means they're basically loaning that money to the Government throughout the year. The only negative I see in what I'm doing is making sure I have the money to pay in April, but that won't be a problem as I keep a nice chunk of money liquid for a rainy day - or to pay taxes.

I've considered taking my taxes to a professional to find out what's best. I might do that this year as I don't have the time to run all the different options (plus I'd like someone who does this as their job to look over everything).

If you don't mind paying every April, then you're doing nothing wrong actually.

It's getting back anything over $500-$1000 where people aren't doing it right. If you get back a large chunk then you need to adjust your W4 forms. You're allowing the government to keep your money interest free for a year. People love getting a big chunk in Aprill, but trust me, the government loves people getting a big chunk even more. Means they just collected interest for a year off your hard work. Multiply that by millions of people, and you get the idea.

[Trevytrev11]

Re: What are YOU going to do with your tax return money ?

If you don't mind paying every April, then you're doing nothing wrong actually.

It's getting back anything over $500-$1000 where people aren't doing it right. If you get back a large chunk then you need to adjust your W4 forms. You're allowing the government to keep your money interest free for a year. People love getting a big chunk in Aprill, but trust me, the government loves people getting a big chunk even more. Means they just collected interest for a year off your hard work. Multiply that by millions of people, and you get the idea.

Yep,

It's not too hard to figure out either.

See where you were last year and see how much of a change you need to make (I still like to give my self a few hundred dollar cushion) to get to the number you want to be at.

Take that number and divide it by how many times you get paid during the year (52-weekly, 26-by weekly, 24-twice a month, etc.). This is how much additional you want taken out every paycheck.

Then go to the corresponding tax witholdings table and find out where you currently stand and then just add witholdings until you get to where you need to be (there are seperate tables for married/single, for pretty much every pay schedule).


However, if you got a big chunk back this year because of a one-time occurance that you are not going to get every year (you got a credit for new energy efficient windows you bought a hybrid car and claimed that credit, you claimed some sort of large causualty loss, etc.), then I wouldn't adjust for that. I also wouldn't adjust if you make a big chunk of your income off commission, which is not guaranteed or fluctuates drastically every year.

But if you are constantly getting $2,000 back, make a change or start putting away $2,000 in a 401K or have the relative amount taken out of your paycheck and put in some sort of savings to make a bit of interest.

[ESPNdeportes]

Re: What are YOU going to do with your tax return money ?

I pretty much break even every year (which is my plan), so nothing. LOL

thats actually the best way to do it!

[ImTellinTim]

Re: What are YOU going to do with your tax return money ?

The usual. Pay a couple bills, get a couple games (this year it looks like The Show and Tiger Woods), save the rest for later. It usually ends up going towards a little 4-day vacation or something like that. I typically get around $800 between fed and state back. I like to have that little cushion in case a taxable event pops up.

And the people talking above about getting huge chunks year after year are right. You should have less taken out every paycheck. Talk to your friendly payroll department about adjusting your allowances with a Form W-4.

[J4son]

Re: What are YOU going to do with your tax return money ?

Mines is going towards my ferret surgery, he has cancer.

If I didn't have to do that I'd probably open up an e-trade account and blow it all there.

[dickey1331]

Paying for my late honeymoon trip to Paris for 6 days in November, it will be on our 1 year anniversary.

Did the taxes today and got $2,250 back. Should be enough with the other money I have to pay for the flight and hotel.


Do you really care where I sent this from?

[SidVish]

Re: What are YOU going to do with your tax return money ?

Did the taxes today and got $2,250 back. Should be enough with the other money I have to pay for the flight and hotel.


Do you really care where I sent this from?

That's great. I've been to Europe a few times with my wife and we love it. Have fun!

[TracerBullet]

Re: What are YOU going to do with your tax return money ?

I got back $31. Pays for a month of Gamefly I suppose .