I don't get it.....

[DizBelle]

Why are people all "Whoo dee doo!!!!" over getting a tax refund when it could have been their money all along if they had their withholding done properly? You didn't pull one over on the government by getting a big refund. They pulled one over on you by getting a free loan from you.


*excluded are the people that get more in a refund than they ever had withheld due to EICs - which is another topic that aggravates me.

 

[Handbag Lady]

Why are people all "Whoo dee doo!!!!" over getting a tax refund when it could have been their money all along if they had their withholding done properly? You didn't pull one over on the government by getting a big refund. They pulled one over on you by getting a free loan from you.


*excluded are the people that get more in a refund than they ever had withheld due to EICs - which is another topic that aggravates me.

I agree with you. We end up paying just a smidge and I'm okay with that.

 

[tennvalgirl]

It's because most people don't understand the tax laws in their own state.

 

[ReneeA]

A savings account pays just about nothing in interest these days. Nothing. If you aren't great at saving & budgeting, getting a big tax return is a great way to save up for a big purchase, and you really aren't out a thing, other than the $3.09 you would have earned in a year on your money.

 

[Hannathy]

I agree. The financial knowledge in this country is sad, very sad.

 

[dsneprincess]

I agree with the "I just don't get it." I am also stunned when I hear people saying I wouldn't have bought it, but I just got my tax refund, so it's not like it cost me anything!" excepting EICs, can people really NOT know it is THEIR money being returned interest free?!? Happens all the time at work and I just shake my head.....

 

[Soulsearching]

I don't get it either!

 

[sonnyjane]

A savings account pays just about nothing in interest these days. Nothing. If you aren't great at saving & budgeting, getting a big tax return is a great way to save up for a big purchase, and you really aren't out a thing, other than the $3.09 you would have earned in a year on your money.

This exactly. When FILING my taxes, I had to report a whopping $6 in interest that I made on my savings this year haha. I'm not missing anything by not having the money now, and I like getting some back as opposed to potentially owing. Sure I suppose you could invest the extra throughout the year rather than place it in a simple savings account and POTENTIALLY get more gains, but I'd rather have a sure thing.

ETA: Now if my refund was something ridiculous like $10,000 I would obviously modify my withholding!

 

[msjprincess]

A savings account pays just about nothing in interest these days. Nothing. If you aren't great at saving & budgeting, getting a big tax return is a great way to save up for a big purchase, and you really aren't out a thing, other than the $3.09 you would have earned in a year on your money.

Exactly. Most people won't even notice an extra $20 in their check. But if you get $1000 in a lump sum you can use it for something "extra".

 

[Anchored]

A savings account pays just about nothing in interest these days. Nothing. If you aren't great at saving & budgeting, getting a big tax return is a great way to save up for a big purchase, and you really aren't out a thing, other than the $3.09 you would have earned in a year on your money.

For real!
With the paltry taxable income my husband makes (military) we stand to lose, say, $1 in interest. We use our refund to go to Disney every year, it's harder to save when it's in the paycheck

 

[Handbag Lady]

A savings account pays just about nothing in interest these days. Nothing. If you aren't great at saving & budgeting, getting a big tax return is a great way to save up for a big purchase, and you really aren't out a thing, other than the $3.09 you would have earned in a year on your money.

I get that mentality, but for me, it is less about the interest (as interest rates are awful in the states) but more about the use of the money. I want to be able to have my money when I earn it and not wait a year to get it. And the principle of the thing, too.

I think if I hear people saying hey, I got MY money back as a refund, I'd be better.

I mean really. The term refund means they are refunding back something you gave out, it isn't "free" money as some treat it.

 

[TifffanyD]

I do it on purpose because I'd rather the govt borrowed my money (for a short time) and not pay me interest than keep building up the interest bearing loans they have from other countries. I know it's a small drop in a large bucket, but it makes me feel good.

Honestly - why do people care? I mean... are you offended that I get money back and am happy? The only way I could see someone being upset is if they were jealous.

 

[VickiVM]

Why are people all "Whoo dee doo!!!!" over getting a tax refund when it could have been their money all along if they had their withholding done properly? You didn't pull one over on the government by getting a big refund. They pulled one over on you by getting a free loan from you.


*excluded are the people that get more in a refund than they ever had withheld due to EICs - which is another topic that aggravates me.

Well....if you're all struggling financially and maybe not everyone in your tax paying household have steady jobs that pay consistently, then it's hard to anticipate your annual tax rate to know what to withhold to break even.

If you're all commission based only and can't predict with any accuracy what your total income will be for the year, then it's hard to anticipate what your annual tax rate will be so you know what to withhold to break even.

If you're all underpaying and wind up owing more, then you're probabaly going to judge that person for not knowing your anticipated annual tax rate.

So someone gets a tax refund and is all "woo-dee-doo"...good for them. It's likely they don't feel they've put one over the govt. at all, but thankful for the blessing of a little extra cash to pay their bills.

I know I was all "woo-dee-doo"!! Paid a few bills and don't feel any differently about the govt.

 

[SMD]

I think I'm doing something wrong, because I almost never get a state and federal refund in the same year.

I don't understand people who deliberately change their withholding to get a refund. I've deliberately had less withholding when I'm doing something short term, because I know it won't end up being enough to matter, but long term, I'd rather just have the money available if I need it throughout the year. It bugs me more to pay taxes the following year on a refund than it does to end up paying a little at tax time.

 

[gwynne]

I do it on purpose because I'd rather the govt borrowed my money (for a short time) and not pay me interest than keep building up the interest bearing loans they have from other countries. I know it's a small drop in a large bucket, but it makes me feel good.

Honestly - why do people care? I mean... are you offended that I get money back and am happy? The only way I could see someone being upset is if they were jealous.

BBM. Exactly. I can never figure out why they care at all. I guess they are bored.

 

[Wall-E1]

Why are people all "Whoo dee doo!!!!" over getting a tax refund when it could have been their money all along if they had their withholding done properly? You didn't pull one over on the government by getting a big refund. They pulled one over on you by getting a free loan from you.


*excluded are the people that get more in a refund than they ever had withheld due to EICs - which is another topic that aggravates me.

I agree. The financial knowledge in this country is sad, very sad.

I don't get it. What's with all the dumping on people for how they choose to manage their finances, whether this new thread or your other government aid thread?

In some cases, people may purposely do this because, for them it is an easy way to save and get a nice lump sum every year. Maybe they prefer to do this, rather than put $50 or $75 into a savings account each week. It doesn't mean the government is fooling you somehow, or that you are dumb financially.

But it seems to make some people feel better by criticizing the way other people manage their money. I think you shouldn't be judging people as carelessly as you have been doing.

 

[cluvsdisney]

I understand it when you're talking about $1,000 even $2,000 or so but I hear of people getting $5,000-$8,000 and much more back without significant life changes that would affect a tax refund. That's a lot of money which I think would be missed or better served being invested in a retirement plan or something other than a savings account.

 

[MickeyChix]

Exactly. Most people won't even notice an extra $20 in their check. But if you get $1000 in a lump sum you can use it for something "extra".

Exactly!!! It's a great way to save for something big w/o being aware of it. After all, when you have an extra $50-$100 on a check are we really socking it away? Or, are we using it to treat our family to pizza and a movie, an unexpected repair, extra groceries, the list goes on. I am fully aware the government is getting my money up front w/o interest but it's nice to expect that refuse for those huge vacations or purchases that are otherwise being put on hold.

 

[RitaE]

Well, why not give the government an interest free loan? After all, the bank is taking my deposits at .95% and then loaning it out to their customers in 5% mortgages and 13% Credit Cards. How fair is that?

 

[Handbag Lady]

I do it on purpose because I'd rather the govt borrowed my money (for a short time) and not pay me interest than keep building up the interest bearing loans they have from other countries. I know it's a small drop in a large bucket, but it makes me feel good.

Honestly - why do people care? I mean... are you offended that I get money back and am happy? The only way I could see someone being upset is if they were jealous.

I just care that people are informed and understand is it their own money. If you are then I am happy for you.