Got our taxes done and were gettin back 8900.00

[SLJ6974]

we just got back from doing our taxes and we got 8900 dollars back. I am so thrilled. This will help us to continue to get out of our debt. Whoo Hoo.

 

[TinaMcTeer]

WOW!!! Congrats on the large return and the paying off debt!!!!

 

[PelletierBears]

I have to ask, why do you have so much withheld? The extra $$$ in your checks each payday could go toward paying down your debt or earning interest in an account! Better than loaning it out to the government.

Unless it's from earned income credit (not sure that's what it's called) or something like that....


Enjoy!

 

[mom2val]

My bff and her dh are getting a huge refund this year. Her dh was deployed 6 months- so half his income was not taxed. They have 3 kids and itemize. There taxable income wound up being so low that they are getting back everytime he had withheld plus getting a few grand extra. They usually have to pay so they are very happy.

 

[Ed J]

I have to ask, why do you have so much withheld? The extra $$$ in your checks each payday could go toward paying down your debt or earning interest in an account!

.

This may have been true yars ago but not now, how much do you really think can be made off the interest ? The last sign for a savings account in my bank I saw was .3 % for under 10K, so what are they really missing out on?


Congrats OP, I owe almost that much .

 

[drcmk]

. The last sign for a savings account in my bank I saw was .3 % for under 10K, so what are they really missing out on?(.

They are missing out on almost $750 every month. I'd rather get my money as I earn it rather than letting the government hold it for me for a year!

 

[crashbb]

.

This may have been true yars ago but not now, how much do you really think can be made off the interest ? The last sign for a savings account in my bank I saw was .3 % for under 10K, so what are they really missing out on?


Congrats OP, I owe almost that much .

According to the OP they are using the return to pay down debt. The question isn't how much money they could have received in interest from a savings account, but how much extra interest they are paying on their debt by not having paid money towards the debt each pay-cheque, instead of waiting until now.

 

[chicagoshannon]

They are missing out on almost $750 every month. I'd rather get my money as I earn it rather than letting the government hold it for me for a year!

I agree. And I would hate for the government one year to say sorry I know we owe you money but we don't have it so too bad.

 

[Marionnette]

.

This may have been true yars ago but not now, how much do you really think can be made off the interest ? The last sign for a savings account in my bank I saw was .3 % for under 10K, so what are they really missing out on?


Congrats OP, I owe almost that much .

The OP is in debt. They could having been paying it down slowly instead of accruing interest on the balance. The interest on a low 7.99% APR CC amounts to a big chunk of change on $8900.

But chances are very good that the OP is getting back way more in their refund than they paid in federal income tax (google "refundable tax credit" if you don't know how this happens). Almost half the people in this country who file a tax return pay no federal tax.

 

[Ed J]

And unless the OP fills us in on their financial habits we don't know if they would apply that extra $700 a month on their debt or only do it when they have it in a lump sum.

My guess is the latter.

The bank interst argument does not hold water with today's interest rates.

 

[kelleigh1]

I just don't think I'd ever announce on a public message board how much money we were getting back in taxes. Or how much I had in the bank. Or how much I make. There are things I don't even tell my family (other than my husband of course). I certainly wouldn't be announcing it to the world.

 

[Ed J]

According to the OP they are using the return to pay down debt. The question isn't how much money they could have received in interest from a savings account, but how much extra interest they are paying on their debt by not having paid money towards the debt each pay-cheque, instead of waiting until now.

The bank interest point was brought up by a previouse poster, so it was in question.

 

[crashbb]

I just don't think I'd ever announce on a public message board how much money we were getting back in taxes. Or how much I had in the bank. Or how much I make. There are things I don't even tell my family (other than my husband of course). I certainly wouldn't be announcing it to the world.

It always shocks me what people will brag about here.

 

[mjmartin01]

kelleigh1: I just don't think I'd ever announce on a public message board how much money we were getting back in taxes. Or how much I had in the bank. Or how much I make. There are things I don't even tell my family (other than my husband of course). I certainly wouldn't be announcing it to the world.

I totally agree

 

[PelletierBears]

The bank interest point was brought up by a previouse poster, so it was in question.

Goodness gracious... .3% is better than nothing isn't it? My point was that making an interest free loan to the government isn't the best use of a person's money! In the bank, under your mattress, paying down debt week to week, etc at least your money is in your hands.

But as I alluded to and a PP mentioned, the refund for the OP may not be from income, it could be due to tax credits. Either way I stand by my point!

 

[Ed J]

Goodness gracious... .3% is better than nothing isn't it? My point was that making an interest free loan to the government isn't the best use of a person's money! In the bank, under your mattress, paying down debt week to week, etc at least your money is in your hands.

But as I alluded to and a PP mentioned, the refund for the OP may not be from income, it could be due to tax credits. Either way I stand by my point!

Unless you know the OP's fiscal habits you can stand by your point and be wrong all you want. If the money doesn't get put towards debt then what good is having cash in hand?

1 dinner out because they have the cash in hand could offset any interst earned. The bank interest point is dead.

The OP maybe very good with cash in hand, may not be either, but at this point we don't know.

 

[Weluvdisny]

 

[Disneybuckeye]

Congrats on your refund and using it to pay down your debt. I hope you are debt free soon.

Please ignore all the negative posters. I was always taught if you can't say something nice don't say anything at all.

 

[Acklander]

They are missing out on almost $750 every month. I'd rather get my money as I earn it rather than letting the government hold it for me for a year!

How are they missing out on $750 a month??? They're getting the money, just a bit later. If it makes it easier to save up by having it held in taxes - good for them. For some people, out of sight, out of mind.

 

[drcmk]

How are they missing out on $750 a month???

Yes. My point was, if I earned the money now, I'd rather have the money now, rather than wait up to a year for it.