Inspired by tax return thread... let's talk $$

[kdibattista]

Next year we will have a $10,000 tax credit (maybe $15,000 if it would get passed )from our adoption. We already are planning baby's first Disney trip!!!!

Thanks for those who kept to the topic

 

[skiwee1]

Oh yeah... I'm sure you don't carry any credit card balances either, right

We don't. My husband would die if he had to pay interest on a CC. We charge everything and pay it off each month. We live within our means so it is very easy to avoid CC balances. We also owe taxes most years instead of giving it to Uncle Sam to hold for us. DH prefers to watch over his own money. We pay almost $100,000 in taxes every year but feel lucky to be able to that. We don't like taxes but it means we actually have some income! LOL!

 

[HoneyPooh]

Why assume that if someone wants a higher tax refund that they are not putting other money asside that they can "get to in an emergency"? I have money going into an ING account, 401K and an IRA. I also file as married but withold at the higher single rate.

 

[phorsenuf]

I just ad a thought too. Alot of CD's and such need a $1,000 minimum to open. Perhaps this is a way for somebody to "save" that chunk of change so they can invest it.

 

[pooh4evr]

Last year we got $8000 back thanks to 2 kids, lots of student loan interest and we bought our first home! We used $ to pay off a credit card, go to Disney and saved the rest! Hopefully we will get a good return this year too -in case no one answered you do write off your student laon interest every year you should get a statement of the amount you paid from the bank or place you make payments to like Sallie MAe

 

[Zmsksirt]

We don't. My husband would die if he had to pay interest on a CC. We charge everything and pay it off each month. We live within our means so it is very easy to avoid CC balances. We also owe taxes most years instead of giving it to Uncle Sam to hold for us. DH prefers to watch over his own money. We pay almost $100,000 in taxes every year but feel lucky to be able to that. We don't like taxes but it means we actually have some income! LOL!

You and your husband are being fiscally responsible. It is just amazing to me how many people fail to manage their own money and finances. Obviously, if you are carrying a credit card balance or getting more than $500.00 back as an income tax refund, you need to pay closer attention to your income and expenditures.

 

[vivilasvegas]

My goodness I actually agree with Cardaway on this one. I'm looking for tax free loans from all you big refunders. PM me and I'll tell ya where to send the check. Its a sad day when adults can't control their spending habits so the look to the "government" to help them with their spending. Scary!!

Gosh, I'm sorry you are sad. Here's some sunshine!

 

[vivilasvegas]

Actually, I'm confused. How do you control what you get back??

All I know is I claim 1, my work takes out my taxes, just me on my tax return, no houses, and I get back around $1000. Sometimes less.

So, I guess I don't understand the disagreement. I'm still doing what my dad told me when I first started working!

 

[kdibattista]

Gosh, I'm sorry you are sad. Here's some sunshine!

 

[MagicalMom]

I kind of feel the same way about this board. I used to spend tons of time here, but it seems like every thread turns into ridiculous petty arguments-- people being jerks just for the sake of it.

I find myself posting here less and less these days.

Ditto!

 

[Crankyshank]

I'm still not understanding how it's more responsible to pay in tens of thousands of dollars come April than it is to get a few thousand back.

 

[C.Ann]

There isn't a single, solitary person who posts on these boards that does not "do" or hasn't "done" something with their money that others would consider "silly", so to make those kinds of remarks is kind of like the pot calling the kettle black - don't you think?

Do what you want with your money - after all, it is your money..

 

[disneysteve]

I'm still not understanding how it's more responsible to pay in tens of thousands of dollars come April than it is to get a few thousand back.

I don't know that it's more "responsible" but it's more financially sound to owe in April than to overpay all year just to get it back in April.

I understand why it works for a lot of people, and that's perfectly fine, but from a strictly dollars and sense standpoint, it isn't the best choice.

 

[Planogirl]

It may not be the "best" choice but if it works for you, than it's the right choice. Only you can decide what to do with your money, at least the government stays out of this little part of it!

 

[dvcgirl]

Prior to retiring, I was in a high paying position. I claimed 0 deductions. I did this intentionally so that I would get a large return back. We used this money to take vacations. I know some people think this is a bad idea. To each their own. It was my money and my decision.

Last year was unusual. Because I retired from my company, I had to take a certain amount of money from a stock plan. It ended up costing me a lot because I sold a great deal of stock. This year, I will not owe anything. I will also not get anything back because I am living off the money from the stock I sold last year.

We've had a few times where we've written huge checks to the govt. FeralPeg...same kind of deal. Large chunks of stock options cashed in that we then had to pay income tax on. Like someone else said...writing checks like that to Uncle Sam sometimes means you've had a very, very good year.

Now, and not trying to sound preachy, but we always-always try to break even. I'd rather owe a couple of thousand if we're off a bit then get a return. We ususally get it pretty close though. My friends and extended family members who are poor money managers always try to get big returns and they blow it on something that they really can't afford. I'm not saying that's the case for everyone here...but for many itching to get that money back...it sometimes ends up going on a splurge item.

 

[mom2kazkids]

With our adooption complete in 2001 (two kids) we received a federal return of $12,004. The sad part is the following year the tax credit went from $5000 per adoption with a income cap of $75000 to a $10000 credit with a cap of $150,000.

Barb

 

[Caradana]

$4100, and it was the happiest day of the winter. We had a Disney bonanza shortly after. I will happily overpay all year, if it means that I get the emotional delight of receiving my refund check.

 

[nwdisgal]

Last year we received around $3000 because my husband's income was untaxable, as he was deployed all year.

But otherwise, we usually get pretty close to perfectly even - either paying or getting less than $100 each year.

Wow. I didn't know about the deployment and the tax exemption. Makes complete sense - they're out there risking their lives every day for our nation.

 

[Honu]

I'm still not understanding how it's more responsible to pay in tens of thousands of dollars come April than it is to get a few thousand back.

I don't know that I'd call it more "responsible" but it's profitable. I withhold the absolute minimum. The money that would be deducted, if I followed the IRS's recommended withholding, I have automatically placed in a high interest savings account through direct deposit. When April comes I pull the money out of that account to pay the IRS. I make $$$$ of INTEREST per year doing this. Let your money, make you money.

 

[disneysteve]

It may not be the "best" choice but if it works for you, than it's the right choice. Only you can decide what to do with your money, at least the government stays out of this little part of it!

I agree that it works for some people. As I said, that's just fine if it does.

I'm not sure I agree that the government stays out of it, though. They are the ones who are able to hold your money all that time and not have to pay you any interest. Wouldn't it be nice if that practice was discontinued and they were forced to pay you a fair interest rate on your overpayments? Then this whole debate would go away.