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livie1205
01-31-2012, 06:49 PM
I heard someone talking about wanting to do that the other day and I just thought to myself "why would you loose so much doing that when you can do direct deposit and have it sometimes as short as a week?".I have never done that because I have never just HAD to do that so fast that it is worth the cost but do alot of people still do it? We norm just put the money into our savings alot of the time so I guess it would not be worth it....I mean unless you are waiting for a paper check it would be best to wait.This year we will maybe use some for our wdw cruise but I am just cheap I guess because no way would I just blow through my whole refund.
If you are getting a refund do you have fun plans with it or does it go into savings? I swear one year we are going to just put it into something fun! haha I wish I was that care free lol but I am telling you one day WE WILL!:banana:until then let me live through you guys, what fun things are you doing?:cool1:

DisneyLoverUSA
01-31-2012, 07:00 PM
If all you do with your tax refund is put it in your savings account then you aren't really making a wise choice either by letting the government keep your taxes all year and then send them back to you at the beginning of the next year having paid you NO INTEREST for keeping your money for 12 months.

The smart thing to do is to raise your deductions/dependents on your tax forms at work and actually get your own money given to you every week in your paycheck. THEN put it into savings and draw interest on it all year.


But most ppl don't. They like getting handed a big check in February like they hit the lotto or won some money when it was just their own money to begin with.

The same way you don't understand why someone would blow through 3 or 4 hundred dollars paying for a rapid refund I don't see how you could let the government keep your money interest free all year. It all works out in the end.

livie1205
01-31-2012, 07:10 PM
anyway.....what are peoples "fun plans" ? This was started to be a fun thread...the rapid refund was just MY thoughts on the subject not to put anyones choices down:) it was so I could envy others lol I WISH I could just through caution to the wind and go have a blast with ours...I did not want to debate my bad money choices because I let the IRS hold my money:sad2: since we are not borrowing from peter to pay paul and we are in a good spot I am not going to worry about that.

NOW BACK TO THE FUN....WDW ANYONE???:yay:

daughtersrus
01-31-2012, 07:50 PM
If all you do with your tax refund is put it in your savings account then you aren't really making a wise choice either by letting the government keep your taxes all year and then send them back to you at the beginning of the next year having paid you NO INTEREST for keeping your money for 12 months.



The same is true for people that escrow their taxes and homeowners insurance with a mortgage company.

For me, we have extra taken out of DH's paycheck because I am self-employed. It's just easier for us to get a refund than to try and figure out my quarterly taxes.

I would never use a rapid refund unless there was some huge expense that couldn't be covered with an emergency fund.

happily single
01-31-2012, 08:03 PM
I used Rapid Refund about 10 years ago. NEVER AGAIN! First I had to wait a day or two for my "rapid refund check". THEN it was a DRAFT which took 10 days to clear my bank. If I had just used direct deposit from the IRS I would have gotten my refund several days sooner. Lesson learned (I was young then:rotfl:)

And the cost is outrageous!

3boymthr
01-31-2012, 08:45 PM
I know one reason people use it. Because they don't have a checking account and/or savings account for the government to direct deposit their money into.

rileyreese
01-31-2012, 09:51 PM
I am not doing anything "fun" with my return BUT I am starting my emergency fund and my debt snowball with it by paying off everything but our vehicles and house and then buying tires!

We did change our deductions some so that we do not get quite as much back next year but we like getting a large chunk back and next year it will be Disney money so that is even better!

MSLRAC
01-31-2012, 10:57 PM
I didn't even know that you could still do Rapid Refund because this is the second year that it has not been offered in our area. The lady at H&R Block told us last year that the government had put a stop to them. But we used to do them because we didn't know any better and were getting back a crapload ($8000+) of money each year. Live and learn! LOL

This year we didn't even go to H&R Block because they were going to charge us almost $400 and we have a basic return with a schedule C. So we're going with a CPA this year for $100.

Anyway, we're using our refund for a down payment for a new second vehicle and for our November WDW trip!!!

Missy29
01-31-2012, 11:23 PM
I have never used rapid refund but it never seems to take to long to get direct deposited anyway. We are using half to go to Disney World in May:yay: the other half is paying off some credit card debt.

bumbershoot
02-01-2012, 01:14 AM
anyway.....what are peoples "fun plans" ? This was started to be a fun thread...the rapid refund was just MY thoughts on the subject not to put anyones choices down:)

The beginning of the post was

why do people still use rapid refund?
I heard someone talking about wanting to do that the other day and I just thought to myself "why would you loose so much doing that when you can do direct deposit and have it sometimes as short as a week?".I have never done that because I have never just HAD to do that so fast that it is worth the cost but do alot of people still do it?

That does not indicate that it's to be a fun thread, but rather a "why do these people do these things" thread.


I know one reason people use it. Because they don't have a checking account and/or savings account for the government to direct deposit their money into.

That's just about the only reason people do it. I know a woman who messed up in her 30s, and in her 40s STILL couldn't get even the most basic checking or savings account because of that ridiculous company that banks use. I cannot recall the name, but she had a short period of her life where she messed up her checking account, and even though she paid all of the charges and fees and put it all right, the account was closed and she wasn't able to get one. Really messed her up; no direct deposit of her check, and she couldn't do IRS refunds in the more normal ways.



This year we didn't even go to H&R Block because they were going to charge us almost $400 and we have a basic return with a schedule C. So we're going with a CPA this year for $100.


Can I recommend that you get the instructions for the 1040 and Schedule C, and look through them. Then look at the return you get back from the CPA, and see how they did things. I had my own business for 5 years and did my own personal and business taxes and it was pretty straight forward and simple, if you read the books they give you. Could go from $400 to $100 to zero.

indimom
02-01-2012, 05:03 AM
I'll play.

We don't do it normally, but in 2005 we used our tax return for our first WDW vacation. I'm self employed and had overestimated my taxes by a wide margain. That return was quite a surprise and we decided to use it for something FUN!

Over the 16 years of my career, we have gotten a return (of some sort) 14 years. We had to pay in on two years.

We don't base our quarterly payments on creating forced savings or getting a windfall return; and, we don't make plans for a return because we never know for certain how much it is going to be. But, I do try to actively avoid OWING. The year we owed almost $2,000 was not fun. :mad: So, I can see why people like the boost a return gives them. I may have earned some pennies on that money when it was in my savings account, but there was a real negative psychological effect to having to take that money out of savings to pay the tax bill. :confused3 Once I put my money into savings, I do not like pulling it back out. :upsidedow

livie1205
02-01-2012, 07:11 AM
The beginning of the post was



That does not indicate that it's to be a fun thread, but rather a "why do these people do these things" thread.




That's just about the only reason people do it. I know a woman who messed up in her 30s, and in her 40s STILL couldn't get even the most basic checking or savings account because of that ridiculous company that banks use. I cannot recall the name, but she had a short period of her life where she messed up her checking account, and even though she paid all of the charges and fees and put it all right, the account was closed and she wasn't able to get one. Really messed her up; no direct deposit of her check, and she couldn't do IRS refunds in the more normal ways.



Can I recommend that you get the instructions for the 1040 and Schedule C, and look through them. Then look at the return you get back from the CPA, and see how they did things. I had my own business for 5 years and did my own personal and business taxes and it was pretty straight forward and simple, if you read the books they give you. Could go from $400 to $100 to zero.



oh thank you for clearing that up:sad2: as long as you know what I intended ;) next time I think out loud I will make it more clear.
anyway my bff is a CPA so we pay her...we are gonna keep a little for cruise spending then put the rest away...but i am telling ya one day we are going to put it all right to WDW! lol maybe next year lol maybe I will book us a 10 night wdw trip and really have fun with it!!:cool1: of course I will look here to get my nerve up haha thanks to those who posted in the spirit it was intended:) I hope you have fun on your trips.

Allison
02-01-2012, 07:17 AM
The title of the thread was "why do people use rapid refund" but that's not what you want to talk about? Sorry, that's confusing.

Anyway, to answer the question that was in the title. I don't know why people would do that. If you were ok letting the government have your money all year then I wouldn't think there would be a huge hurry to get it back. That's my take on it.

DawnM
02-01-2012, 07:30 AM
I had no idea rapid refund was HUNDREDS of dollars! :scared1:

Of course, there are people who use those check cashing places for pay check advancements, so there are all sorts of people who will use a service for this.....usually preying on the poor.

Dawn

hanutedmansionmomma
02-01-2012, 07:34 AM
:cool1:going on first cruise!:cool1:





well, in a roundabout way...we're getting rid of some debt and putting what would have been those payments into savings, which we'll use for a December cruise:thumbsup2

girli565
02-01-2012, 07:54 AM
We are taking a Spring Break cruise March 11-18. It was a last minute thing because other family members were going and my husband said, let's do it!

We are paying off the last bit of Credit Card debt we have and then the rest is going to savings.

MSLRAC
02-01-2012, 08:43 AM
Can I recommend that you get the instructions for the 1040 and Schedule C, and look through them. Then look at the return you get back from the CPA, and see how they did things. I had my own business for 5 years and did my own personal and business taxes and it was pretty straight forward and simple, if you read the books they give you. Could go from $400 to $100 to zero.

I have actually thought about that because I used to them all the time. We only started using H&R Block when things got complicated...mortgages on two homes, rented one (for a loss), two W-2's, and numerous 1099's. But now we're back to just a pretty basic return. But I do want the CPA to look at them this year because H&R Block claimed we didn't have enough to itemize and I find that hard to believe.

Disfamily0405
02-01-2012, 10:36 AM
I am going to Target and buying the last 29 gift cards I need to pay off our 2013 cruise! I am so excited! with my husband's Employee discount, our Target Visa card, and a Pharmacy Rewards discount card I am getting $1450 worth of Disney Gift Cards for $1177.69 for a savings $272.31!!! That brings me to a grand total savings of $759.60 for $3150 in Disney Gift Cards!!

ksloane
02-01-2012, 10:56 AM
I am going to Target and buying the last 29 gift cards I need to pay off our 2013 cruise! I am so excited! with my husband's Employee discount, our Target Visa card, and a Pharmacy Rewards discount card I am getting $1450 worth of Disney Gift Cards for $1177.69 for a savings $272.31!!! That brings me to a grand total savings of $759.60 for $3150 in Disney Gift Cards!!

That's great!

I will be paying off our disney cruise (very little left) with mine and setting aside enough for our time in NYC after the cruise.

The rest is going into savings and paying off the small balance (less than $200) I've accrued on a credit card the last couple months....

furb & dez
02-01-2012, 11:23 AM
Let's see... I've already got my state refund - spent that on a week's worth of groceries. :lmao:

For my federal return, I'm using a portion of it to pay for a trip to Disneyland (first time staying on property!). I will also be using part of it to buy another (better-fitting) tuxedo. The remainder will go into the household budget, most likely to replace the chlorine generator and sweeper for the pool.

When I get my bonus, about half will go into savings specifically to prepare for buying a car next year. Another chunk will go to pay off the rest of my upcoming cruise. The rest will go into my general savings account.

mrodgers
02-01-2012, 02:29 PM
anyway.....what are peoples "fun plans" ? This was started to be a fun thread...the rapid refund was just MY thoughts on the subject not to put anyones choices down:) it was so I could envy others lol I WISH I could just through caution to the wind and go have a blast with ours...I did not want to debate my bad money choices because I let the IRS hold my money:sad2: since we are not borrowing from peter to pay paul and we are in a good spot I am not going to worry about that.

NOW BACK TO THE FUN....WDW ANYONE???:yay:
You wouldn't envy mine. Pay local taxes, pay heating oil, and that's about it.

The same is true for people that escrow their taxes and homeowners insurance with a mortgage company.
I don't have that option. I'm required to escrow my taxes and homeowners. I just learned (here on the board) recently that this isn't the norm. I always thought it was the norm because finance companies want to make sure it is paid so they don't end up with a loss when the homeowner doesn't pay it and runs away from the loan when the gov takes their house for $2000 worth of taxes....

Priorityonecb
02-01-2012, 02:45 PM
We will be putting it towards our summer vacation, and using the rest towards home improvement projects. I classify those as fun because it's not just boring "Oh we need a new roof"...but fun painting/redecorating projects and adding on a rec room that we've been wanting to do for years.

Doodlebug939
02-01-2012, 02:59 PM
We are not getting too much back compared to most of our friends but we have a plan. We are going to pay off our truck which will free up over $400 per month. Currently I am staying at home until after summer break with the kids so this will help free up some cash on the budget.

Then my one EXTRA thing is a pair of RUNNING SHOES! My butt is not as big as it once was and I would like to start jogging. :worship: I have to jog from mailbox to mail box and then walk and I live in a development so you know those are not far apart. :rotfl2: But I am working on me and it feels good.:lovestruc

But my shoes are from discount stores and they are not a good fit. So I told hubby that I wanted to be able to splurge a little on shoes to keep me motivated. I am working really hard to go back to basics. Dinners at home, family game nights, themed movie nights, riding bikes, walking the dog. I am trying to make my life about the people in it and not the things around me. And I cant tell you how the budget board has helped me to be a better person and better mom.:hug:

4 Ears
02-01-2012, 03:16 PM
Yup, our plans are to move to Winterhaven in June so our refund is going towards that :woohoo::yay:

4 Ears
02-01-2012, 03:38 PM
Yup, our plans are to move to Winterhaven in June so our refund is going towards that :woohoo::yay:

pyrxtc
02-01-2012, 03:47 PM
I was going to use ours for a cruise but now we'll use part of it to visit my sister in AZ for April break and the rest will pay for my son's braces and eye glasses. At least those will be paid off. We are paying down some bills first also before the trip. I will also get a new Olympus Tough Camera and my DH is using some to go on his off-roading trip this summer and we'll visit Hershey park. This will be a mix of tax refund and his bonus pay.

North of Mouse
02-01-2012, 04:48 PM
Our refund goes direct deposit, so it isn't planned for anything special that we already don't have planned from our general account. Also, as bumbershoot has said, we almost never pay to have our taxes done unless they are more complicated than usual (like buying or selling a house, etc). My dh always buys the computer version for filing taxes and does it himself - saves $$. It takes a little time and concentration, but it just walks you through the process and actually sometimes saves you money because it asks you about certain things that you may not remember to do.

North of Mouse
02-01-2012, 04:54 PM
Yup, our plans are to move to Winterhaven in June so our refund is going towards that :woohoo::yay:

WOW - congratulations, bet you will be glad to get out of those harsh winters, I know I would be, but then I've always been a southern girl and can take the heat lots better than cold :goodvibes You will also be "next door" to the mouse :woohoo:

livie1205
02-01-2012, 04:58 PM
all your plans sound great! I SPLURGED on starbucks today lol woohoo

sammielynn
02-01-2012, 05:09 PM
This is only the second time in my working lifetime (30+) years that I'm not getting a refund:sad2: Got some money from my Dad's estate and it bumped my income up way to high. I'm having to pay:scared1: I did buy myself and my sons 10 day non-expiring park hoppers with some of my inheritance. :yay:

4 Ears
02-01-2012, 06:40 PM
North Of Mouse, yes we are SUPER excited.
Being a neighbor of the mouse, never thought of that ;):lmao:

ZehnJahren
02-01-2012, 06:49 PM
Every time I adjust my holding, I seem to end up in the red, so I keep my state and federal at 1 and just happily take the refund check (thanks for giving my money back, Uncle Sam!).

This year, I get a nice refund, then a 3-paycheck month, then my bonus in succession. I am socking 72% of it into savings (and half that savings goes to Disney! - the other half is emergency, as I'm trying to build it up in case I need to buy a car); the other 28% is for my medical deductible that I've already reached this year, a pair of running shoes (which I needed badly), and a personal trainer. I bought the running shoes on Monday, and I'm meeting with the first personal trainer tomorrow. Very excited!

gracie1
02-01-2012, 07:02 PM
Mine is going towards a root canal :scared1:
And the rest in savings

drinkme
02-01-2012, 07:27 PM
I know I should stay away from these threads every tax season because I get so envious with all the high returns people get...lol.

But tell me, how does someone actually get an $8000 refund????? Do you really have such high withholdings through your employer each paycheck? Or do you have great credits/deductions???

I'm trying to see what the advantage is of having a big check sent to you once a year over having that extra money every month in your paycheck.

4 Ears
02-01-2012, 07:52 PM
Dh was telling me one of his associates is getting 8100.00 back :scared1: They have the house credit, a new baby this year and each of them are in college. :teacher:
Thinking we are getting a nice chunk back this year but cuz we adjusted things after having to pay in last hear :scared1::sad2:

But 8100.00 I remember when DH and I first got married that is about what he made 1 year! oopsies, that is prob showing my age :sick:

coastiewifern
02-01-2012, 07:59 PM
IF we get a refund (haven't done our taxes yet) then I am buying a new washer and dryer. Maybe not that exciting to most but I've had my set for 18 years so I'm excited.

sorcerormickey
02-01-2012, 08:02 PM
We're doing lots of fun things with our refund, but I will keep it to myself, since we are obviously too stupid to correct our withholdings. :rolleyes:

AZMermaid
02-01-2012, 08:27 PM
We usually only get a few hundred dollars, but a few hospital stays, high deductible HSA plans and other newer stuff, we will be getting about $4500 back. :banana: It would have been nice to have that extra money each month, but oh well. We'll adjust for 2013. So, my husband is getting a new TV for his office, which he has wanted for a few years now. The TV that is in there will be moved into our room and we'll get rid of the old tube TV that is starting to make a humming sound. That will be about $500. The rest will go into savings, partly to replenish what we had to take out for medical stuff and partly towards the pool we are saving for. We toyed with paying a big chunk towards DVC, but I am a teacher and I elect to get balance of contract pay (about $5000) for the summer and we have been planning to use that to pay off DVC all together- one year after we bought in!

StephMK
02-01-2012, 09:41 PM
We end up w/a refund because I'm never sure about my self-employment pay each year so we take out more to be safe. This year, I made less than expected but DD turned 17 so we are getting some $ back but not as much as in past years.

Fun - well, if it's possible to consider tires fun, we need new tires for 2 cars. The rest will be put away to go towards gas/hotels/spending money for our summer trip East.

Natalie's Mommy
02-01-2012, 10:56 PM
But tell me, how does someone actually get an $8000 refund????? Do you really have such high withholdings through your employer each paycheck? Or do you have great credits/deductions???

I'm trying to see what the advantage is of having a big check sent to you once a year over having that extra money every month in your paycheck.

my husband and and i both claim 1 on our w4 withholding because i am self employed (im a realtor) and dont make enough to need to pay quarterly so i have to pay all my taxes for my business at the end of the year. having more taken out of my husbands pay and my pay from my retail job means that we don't have to get out the checkbook and write the IRS a check at the end of the year. Plus we maximize our deductions during the year

we have 2 kids so that's $2000 right off the bat

we both had student loans in years past (down to one, interest isnt enough to claim)

we donate ALOT to charity, tax deductions always help there (good karma to help those with less, also teaches our children that there are people out there who go without)

we built a new house last year, so we currently pay a boat load each year in interest (a deduction)

last year we got the $6500 moving up tax break (thank you Obama for extending the closing deadline for that)

and our PMI payment for our house is also a tax deduction (and quite high, cant wait till we can get our mortgage below 80% of our worth so we can drop this)

all those little deductions combined are enough to get our adjusted income down a decent ammount so that our refund goes up.

hipchickie
02-01-2012, 11:38 PM
I know I should stay away from these threads every tax season because I get so envious with all the high returns people get...lol.

But tell me, how does someone actually get an $8000 refund????? Do you really have such high withholdings through your employer each paycheck? Or do you have great credits/deductions???

I'm trying to see what the advantage is of having a big check sent to you once a year over having that extra money every month in your paycheck.

I am self employed, so we don't get a lot of choice on quarterly tax payments. we pay them, even if they end up getting refunded.
Last year we had a return of almost $10 K due to an adoption credit

Sadie22
02-01-2012, 11:41 PM
This is only the second time in my working lifetime (30+) years that I'm not getting a refund:sad2: Got some money from my Dad's estate and it bumped my income up way to high. I'm having to pay:scared1: I did buy myself and my sons 10 day non-expiring park hoppers with some of my inheritance. :yay:

How is an inheritance taxable income?

hipchickie
02-01-2012, 11:49 PM
How is an inheritance taxable income?
ditto that - an inheritance should not be taxable inome :confused3

mama2ella
02-01-2012, 11:58 PM
we are putting some in savings, some for Disney and some for new floors

delmar411
02-02-2012, 08:49 AM
We're going away for a few days for our 10th anniversary so some of the money will go to that. The rest is going for boring things like summer college classes since the grants in the summer aren't very much and this summer tuition is discounted by 25% so we want to take full advantage of that.

So mostly boring with a bit of fun thrown in. :)

furb & dez
02-02-2012, 09:53 AM
How is an inheritance taxable income?I'm not a tax person, but I could see a situation where the deceased person's child receives securities/stocks. If the stocks were sold after the child takes possession, it would become realized gains, and therefore taxable, no?

pyrxtc
02-02-2012, 10:34 AM
I don't think tax refunds should be taxable. I mean, that refund is what we overpaid last year and so we paid the amount of tax we need to on our income and were sent back the rest but now they want to tax us on it. Isn't that double dipping ?? I mean, we should have had that money in our pockets to pay our bills during the year and we wouldn't have to pay taxes on it next year. I mean, we do pay taxes on our gross income on not our after tax income. Come on !

rockawaybeachgirl
02-02-2012, 03:25 PM
I don't think tax refunds should be taxable. I mean, that refund is what we overpaid last year and so we paid the amount of tax we need to on our income and were sent back the rest but now they want to tax us on it. Isn't that double dipping ?? I mean, we should have had that money in our pockets to pay our bills during the year and we wouldn't have to pay taxes on it next year. I mean, we do pay taxes on our gross income on not our after tax income. Come on !

State tax refunds are income in the subsequent year if you itemize, because you took the amount paid as a deduction in the prior year. Say you paid $100 in state taxes in 2010, you deducted $100 on your federal return. Low and behold you do your state return and realize you only should have paid $60. You get the $40 back. The $40 is income in the next year bc you can't have the $100 deduction AND the $40 refund.

rockawaybeachgirl
02-02-2012, 03:35 PM
I'm not a tax person, but I could see a situation where the deceased person's child receives securities/stocks. If the stocks were sold after the child takes possession, it would become realized gains, and therefore taxable, no?

when you inherit stock from someone, you inherit the cost basis on the date of death. The inheritence itself is not a taxable event. However, as the poster above points out, if you then sell the stock for something more than the inherited cost basis, that difference is taxable.

Additionally, a lump sum distribution from a 401(k) to a non-spouse beneficiary IS taxable if it is not rolled over into an IRA. This is because no tax was ever paid on that money, so it can;t be distributed tax-free.

CastleChick
02-04-2012, 08:18 AM
We are putting ours towards purchasing some land so we can build a new house. DH thinks this is "fun" lol. We were supposed to put it all on my car to bring the balance down (agreed upon when DH surprised me with the purchase last Valentine's Day) and that is what I thought of as fun for it lol.

We rarely just blow what refund we get. We normally put it on our debt (car is our last one) and don't even think about it.

Fabinva
02-04-2012, 02:42 PM
We'll use a portion of ours for upcoming Disney spring vac, adding a couple of days visiting Universal too. :cool1:

iheartdisney
02-04-2012, 03:12 PM
We did rapid refund back in our early twenties- in the "two incomes and no kids" days. That year WDW was giving Active duty military free 7 day parkhoppers, and we went in and did our taxes the week before we left. We figured why not, we could really live it up.

Nowadays, we are a "one income and 3 kids" family we do our taxes ourselves and it goes towards fun stuff like credit card balances. :)

Hook326
02-04-2012, 10:21 PM
Some of ours will be going toward the quartz countertops I've been wanting as well as a nice backsplash :cool1:

The rest will go into ours and the kids savings accounts. It'll be our last really large refund (adoption credit) so I want to get the savings account built back up!

Crazy4Disney06
02-05-2012, 03:24 AM
We paid off some bills, put some in savings and bought a small DVC contract :)

BubMunkeyBles
02-05-2012, 06:44 AM
We're using a couple hundred on our upcoming cruise, but most is going to pay off a credit card fully and we're moving in April and want the extra money until our pay is normal.

Nanu57v
02-05-2012, 07:18 AM
Last year we did SWW at Disney and were able to donate to some places we'd been wanting to, the year before we bought an awesome swingset for the kids, I can't remember before that. This year for some reason money is super tight so its just going to go mostly to savings, with enough left over for a mini-vacation to DC or Niagara Falls. (We don't budget for vacations and take that money out of our return or any unexpected income).