Anyone purposely get a tax refund?

[Free4Life11]

I know all the experts say it's better to have to owe on taxes then get back, but I've never liked that. I remember my first year I owed in taxes and I didn't have any money and was ticked, so from then on I just had $10 extra taken out of each paycheck.

I know that if I put it in an account I'd be earning interest, but honestly I don't have the self-control to actually put it into a savings account and my employer doesn't offer any benefits where I could automatically have money put into savings account or investment accounts, etc.

I'd rather just forgo the small amount of interest I could make (if I had the self control to put it into a savings account, which I don't) and get a nice sized refund check in Feb./Mar. Plus, it's just a lot more impressive (and fun to spend!) in my opinion. It's kind of like a "forgotten" savings account.

I don't necessarily need to know why this is a "bad" idea, I already know the reasons why. I just choose to do this...anyone else do this??

 

[msbegin]

I'm the same way, I just don't have self control to save... We "purposely" get a refund & I also just adjusted my witholding so that the gov't takes an extra $10 per pay period. It will only amount to a couple of hundred more, but it will be spending money.

Do whatever works for you!

 

[Jen_in_NH]

I do the same thing. I understand the theory of saving it and getting the interest myself, but the amount of interest these days on what I get for a refund would be pretty small.

We may look at changing it this year, since we just bought a house, and now also have the interest deduction. Finally will have to have a CPA look at our taxes.

Jen

 

[WatchinCaptKangaroo]

I try and get the smallest refund possible but I'd rather get a refund then owe money. I usually buy a big ticket item but this year I think I'll pay off some bills.

 

[TEK224]

I do this too. I wouldn't be disciplined enough to put the extra money away. When the refund comes in, I'll either pay off a big bill, do some home repairs or go on vacation. It's nice to have the options!

Terri

 

[LadyBears]

We do this too - it is much easier to get money than it is to try & come up with extra money to pay.

 

[dbarker]

I'm a CPA. I've been preached to that the perfect Tax Return is owing nothing and having to pay in nothing. Sounds good on paper.

However, I like having my big refunds in Feb. DH and I are not disciplined enough to save that kind of money, so that refund is like our "bonus" for working all year. With interest rates low now, the interest we could have made on this money would be so minimal that I just don't see the point. Besides, this is how I can afford WDW.

If I didn't get my refund I think I would be depressed the rest of the year until I could get the next refund. My job can get so stressful at times and the thought of that refund sometimes is one of the reasons I don't just storm into my boss's office and start singing that famous Johnny Pacheck song..."Take this job and ....."

I love my refund. I want to go to WDW every year. Can't. But I still want to.

 

[aka-mad4themouse]

No refunds here. I'd rather keep my money than use Uncle Sam as a piggy bank. Since DH is self-employed, we pay quarterly taxes. We have to be disciplined enough with our finances to set aside all the money that needs to be paid in taxes every 3 months anyway. I'm certainly not going to write a check for more than I have to just so I can get it back in one lump sum in the spring.

I know that a lot of people like getting that big refund check every year. I admit to being just the slightest bit jealous when I hear people discussing their plans for their refunds. But I have to remind myself that the I already have my money while they're waiting for their checks to arrive. And I had it all year.

When I was working part-time in the hospital, I always had myself listed as single, w/no dependents on my W-4. That way, DH paid out less in quarterly taxes since we file jointly. I could have had more coming home every two weeks in my paycheck and just had DH send the larger amount in on his quarterly payment but that check was so HUGE already! So, I understand the psychological reasoning behind getting that big return. I think that if it's the only way that you would save the money, well then go for it!

 

[Dopey & Grumpy]

We did that for years. It was really nice to hear "You'll get back $$$ this year". Unfortunately, we're both retired now (early retirement) and we've ended up having to pay the last five years. Every year I have extra taken out and it gets smaller but we still pay. Very depressing. I hate having my taxes done now where before I used to really look forward to it.

Maybe once we reach that "magical" old age, we'll either break even or get a little back. My thinking has always been "better in my pocket than Uncle Sam's".

 

[kellyg403]

I would go for the big refund too. It was so much easier for me to get that one lump sum. Me and the kids were "rich" for a little while, plus it was somehting to look forward to during the lean times. Now dh is self employed an we pay the quarterly thing and rarely get a $$ back. I say do what you want. I did have one guy at HR Block one year tell me that the IRS was not my personal savings account and I needed to do better about not getting large returns at the end of the year. But with all my other personal problems at the time, owing the IRS was just not something I wanted to experience!

Kelly

 

[mickeyfan2]

I try to break even. If you owe too much you pay a penalty. I think that $10 ($520) is not a large sum and I would stick with it. Now if it was $100 ($5200) I would tell you to cut it back.

 

[d4est]

We are big refunders. That is actually how we got on our "February Orlando Vacation" kick. Now we go every year. The refund either helps pay for the vacation or gets us back on our feet when we return.

I personally love refund time. I have never worked at a place where "bonuses" were handed out at Christmas (teacher here, no monetary bonuses for us), so the refund feels like my hard earned yearly bonus!

 

[Wish I lived in Fl]

We prefer a refund too. But it goes into permanent savings. No splurge.

 

[crisi]

The nice thing about expecting a refund is its motivation to get your taxes done early!
Haven't gotten one in several years

 

[bettyann29]

I also do it so that I purposely get a refund check.. I also know that everyone says its not a good idea, but it works for me..

 

[malibuconlee]

If you want to "owe" the government money at the end of the year just be careful it's not too much. They can and will fine you for that. We nearly had a $250 fine the first year we were both working at higher paying jobs after being married. And one of my girlfriends DID get fined for not witholding enough.

 

[seashoreCM]

I used to figure out things so I owed a little tax on April 15. But lately I find myself having to get an extension of time to file (a form 4868). There are penalties for owing more tax after doing an extension so I now have to pay more early to make sure I don't owe tax.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[keishashadow]

After getting a large, unexpected refund about 10 years ago, we've always had more money taken out for withholding. Aside from living in the great state of Pennsylvania - land of taxes...we've always got a big bite due for local taxes each year that we have to pay directly. Additionally, I always have pony up on my earnings as an independent contractor. Since I never know exactly how hard I'm going to work LOL, I'm never sure what I'll owe @ the end of the year.

Our annual refund is eagerly anticipated...it's developed into our vacation fund. IMO, not much worse than the small amount of interest you can accrue in short-term savings accounts. Our "real" savings vehicles remain untouched.

Don't forget if your circumstances change dramatically and you need more money each payday, you can always adjust your withholding. Good Luck.

 

[tikilyn]

We also get a nice sized refund in the spring and we like it that away! We usually spilt it up into a couple of things like a vacation, a bill or something for the house and some goes into savings. Like this next refund will be going towards a wooden swingset for the kids and a new fence and any extra will be divided up between our savings account, vacation account and paying one an old doctor bill we have. It all balances out in the end for us. We all get a little something from it. I know that if we had that extra money every payday we would just end up blowing it on stupid things. This way is best for us.

 

[Lorikr65]

I am guilty of big refunds ($5000 last year). But I am afraid they are going to change something and I'll end up oweing. Like the year they gave us money in the summer (for each child) and then we found out it was in advance and we had to claim it in February - didn't like that! Plus, I'm doing work from home and I will be getting a 1099 at the end of the year. I've never done this before and I'd rather just deduct what I owe from what we'd be getting back then owe. I hear nightmares how people who own their own business always end up having to pay. Even though I only make $4,000/yr (and I started in June so it's only 1/2 year) I'm still afraid because I've never done this before. I usually do my own taxes but I think I'll get an accountant this year. I did buy a few things (laptop, software) and I have mileage and use of home to write off so hopefully I'll be in good shape. Maybe next year we'll have less taken out of DH's check!

Lori