What will you do with your tax refund?

[Arielssister]

We don't get very much. Not as little as some but not close to what others get. Of what we did get, we have paid down some debt, bought a bedroom dresser and put the rest in savings. My DH would like to buy a tv. We have an ancient one so we are saving up for a decent one. We used our tax refund last year for our WDW vacation. It didn't cover it but it covered most of it. I think you are wise to work on your ira. =)

 

[travelgirl06]

We're most likely splitting our homebuyer tax credit between paying off the car and paying down the mortgage. Very exciting, I know...

The rest of our tax return will go towards airfare for our Europe trip this fall (which means money that would have gone towards those tickets can go into various savings/retirement accounts). We are really looking forward to this trip, as it has been put off twice for various reasons, the fact that our normal tax return will nearly cover the airfare is perfect (although it does mean we need to adjust our witholdings for next year so we aren't getting a huge refund).

 

[MagicKingdom05]

We're most likely splitting our homebuyer tax credit between paying off the car and paying down the mortgage. Very exciting, I know...

The rest of our tax return will go towards airfare for our Europe trip this fall (which means money that would have gone towards those tickets can go into various savings/retirement accounts). We are really looking forward to this trip, as it has been put off twice for various reasons, the fact that our normal tax return will nearly cover the airfare is perfect (although it does mean we need to adjust our witholdings for next year so we aren't getting a huge refund).

Our Sept 2010 WDW trip was a postponement of our December 2009 trip. We originally thought that most of the refund was going towards paying $6000 worth of medical bills that insurance originally denied, but agreed to pay last month. With those bills being taken care of, we can put about 80% of the tax return into savings and the rest towards our WDW trip.

 

[samshane]

My Dh (Navy) was stationed oversees for 9 out of 12 months last year so we are getting a sizable refund. We are putting it in a savings account (the name of the account escapes me) where he can earn 10% interest on the first $10K in the account. It is available to him since he is deployed. With the remainder we are saving it - though I need to replace a cracked windshield one of our cars. And I am sure some other needs will come up as well.

 

[blackjackdelta]

What refund? A refund!

Jack

 

[Wonderlandmom]

though I need to replace a cracked windshield one of our cars.

Did you know your auto insurance will cover that, no deductible? USAA was great when we had to have ours fixed. They determined if it could be repaired or if it needed replacing. They don't want you driving with it cracked!

 

[DreadpiratK]

We claim a ridiculous number of exemptions in order to get all of our money up front, so I was surprised to find out we were getting a pretty good sized refund this year. Sadly, the same week we found this out we filled out our FAFSA for next year and found that my son will be eligible for $2500 less in financial aid than last year. Oh well, easy come, easy go. At least for a few days we thought Disney would be easy this year!

 

[Ka' eo]

I have never understood why people want a big refund rather than getting their taxes right each month. We try to break even, I think we will get about $80 back.

So many of you say you are using it to pay off CC's. If you set up your with holdings right, you would get more money in your pay each month and perhaps could pay your CC bills each month. Could save on all that interest you must be paying. Don't give the IRS your hard earned money for the past year! Use it yourself each month!

I do understand your thoughts completely. We had a huge refund last year, unprecendeted. I'd worked more and had failed to claim enough exemptions. It was a huge surprise and very welcome. This year we knew it wouldn't be anywhere near it as we did adjust our exemptions. So we were still happy to get some back. It is kind of like a little surprise. I don't get the same check week to week or year to year as I do some consulting on top of my more predictable part time job.

But for folks who are tight, sometimes knowing some will come back is something they look forward to every April. I get that and I do feel badly if people are getting less, or worse having to pay, especially if they were hoping for it to be different.

Of course I REALLY feel bad for folks who have lost, are losing or don't have a good paying job. It must just be terrible to see tickers with trips to the happy place or what folks are doing with their extra money.

 

[MagicKingdom05]

I do understand your thoughts completely. We had a huge refund last year, unprecendeted. I'd worked more and had failed to claim enough exemptions. It was a huge surprise and very welcome. This year we knew it wouldn't be anywhere near it as we did adjust our exemptions. So we were still happy to get some back. It is kind of like a little surprise. I don't get the same check week to week or year to year as I do some consulting on top of my more predictable part time job.

But for folks who are tight, sometimes knowing some will come back is something they look forward to every April. I get that and I do feel badly if people are getting less, or worse having to pay, especially if they were hoping for it to be different.

Of course I REALLY feel bad for folks who have lost, are losing or don't have a good paying job. It must just be terrible to see tickers with trips to the happy place or what folks are doing with their extra money.

I know what you mean. My wife has been unemployed since March 2008 and hasn't been able to find a job. We have really had to tighten our belt especially around gift giving time to make every penny stretch. We have learned to live without the extra money I have taken out for taxes each check and it really is a nice treat come Feb when we do our taxes to see what we are getting back. If it wasn't for me winning a $1000 Disney gift card, we wouldn't be going to Disney this year at all.

 

[rumrunnergirl]

.

 

[Planogirl]

Did you know your auto insurance will cover that, no deductible? USAA was great when we had to have ours fixed. They determined if it could be repaired or if it needed replacing. They don't want you driving with it cracked!

We have a severely cracked windshield on one of the cars so it can't be repaired. I wasn't aware that we could replace it without a deductible?

 

[ohlas]

I have never understood why people want a big refund rather than getting their taxes right each month. We try to break even, I think we will get about $80 back.

So many of you say you are using it to pay off CC's. If you set up your with holdings right, you would get more money in your pay each month and perhaps could pay your CC bills each month. Could save on all that interest you must be paying. Don't give the IRS your hard earned money for the past year! Use it yourself each month!

yep that what we do, why give the government a interest free loan. Nevery made any sense to me, who hooo i payed 5k in taxes and the nice man is giving back 2k woo hoo lol

 

[barbarabini]

I don't get it either. Some people are getting back 5000 +. With thtat money, they could have (1) avoid credit card interest, (2) put 400 + into savings each month through direct deposit, (3) made those purchases that they needed through the year or just used the money. Instead, you gave the gov't 5000 + extra, and got returned a slightly devalued currency, with no interest earned for the year.

Just for kicks, you may want to check out the withholding calculator at irs.gov. This might allow you a little extra room in some otherwise tight budgets.

 

[Wonderlandmom]

We have a severely cracked windshield on one of the cars so it can't be repaired. I wasn't aware that we could replace it without a deductible?

Sorry! I looked it up and it seems to vary by states. What I said is true in FL though. You can always call and ask what your policy says though, as that could vary in other states from what I read!

Zero Deductible States—FL, KY, MA, SC

If you live in Florida, Kentucky, Massachusetts, or South Carolina, you live in what's called a "Zero Deductible State." That means that your insurance company is required by law to allow you to purchase a windshield replacement using insurance with no deductible—as long as you have comprehensive insurance on your vehicle. If you live in one of these states, and have comprehensive insurance, it makes sense to use your insurance to pay for your auto glass replacement. Florida and Massachusetts only fully cover windshields, but Kentucky and South Carolina cover all glass replacement.

Read here too
http://www.disboards.com/showthread.php?t=2360126

 

[phins_jazy]

We put about $2000 into savings, got a new tv and a new washer and dryer. Our current washer and dryer is over 10 years old and is on it's last legs. Plus the new ones are front loaders which will use a ton less water than mine do now. 5 people in the house and laundry multiplies very quickly!!!

 

[The Iron Giant]

I don't get it either. Some people are getting back 5000 +. With thtat money, they could have (1) avoid credit card interest, (2) put 400 + into savings each month through direct deposit, (3) made those purchases that they needed through the year or just used the money. Instead, you gave the gov't 5000 + extra, and got returned a slightly devalued currency, with no interest earned for the year.

We're one of those people that you don't understand. However, we have no credit card balances and we do save money each paycheck.

I just prefer to have an additional savings bonus that we get each year. We might use the bulk of it to put up a fence ($6k) but for now it goes into savings with the rest.

I'm not overly concerned about the interest free loan to the government - besides right now they could use it

 

[HeyIt'sMe]

I have never understood why people want a big refund rather than getting their taxes right each month. We try to break even, I think we will get about $80 back.

So many of you say you are using it to pay off CC's. If you set up your with holdings right, you would get more money in your pay each month and perhaps could pay your CC bills each month. Could save on all that interest you must be paying. Don't give the IRS your hard earned money for the past year! Use it yourself each month!

ITA!

 

[DCLbrideSept2009]

We have a severely cracked windshield on one of the cars so it can't be repaired. I wasn't aware that we could replace it without a deductible?

your insurance may actually have a deductible but most repair/replace places will waive it (it's usually about $50). I went probably about a year with a big crack in my windshield before i thought to check insurance... not only was it covered and deductible waived, it was a mobile place that came out to my house and replaced it... super easy!! couldn't figure out why i didn't do that sooner...

 

[rumrunnergirl]

.

 

[turkeymama]

One thing I'm doing is getting new tires for my truck. I've done good and only needed 2 sets of tires since I bought it in 2003 (the original tires and replace them once), but it is past time.

Also, we are moving to a new parish at the end of the school year, one that doesn't require the kids to wear uniforms to school. The kids haven't had a lot of really good clothing for about 2 years. They have a few nice outfits for weekends and holidays, but not nearly enough for school. And I'll start teaching in August so I'll need a few things (nothing fancy) to get me started as well. We'll probably spend a nice penny on those things. It's been awhile though, and I think the kids deserve to have something nice after doing without for awhile.

I would love to take a trip, and I haven't ruled it out yet. We'll have to wait and see. For now, I'll try to lock up the rest of the funds so we aren't tempted to spend what we don't have to.