agreed. i see no point in refunds. if you can adjust your withholding so that the amount taken out closely matches your total tax due... that's the way to go. they don't give US interest free loans... why do the same for them??
I haven't done my taxes yet but when I do I fully expect to pay. I'm done with having my money tied up. Now I can wait to do my taxes instead of trying to hurry and get it done so I can get my money back. I'll wait till at least April to even think about doing my taxes. No reason to hurry.
joyrae said: agreed. i see no point in refunds. if you can adjust your withholding so that the amount taken out closely matches your total tax due... that's the way to go. they don't give US interest free loans... why do the same for them??
(yes... I know... I know... )
I usually get a couple grand back, and I have no plans to adjust my withholding. Sure, from a strictly numbers sense this doesn't make sense, but from a human behavior sense it does. If I get an extra $50 a paycheck, I'm not likely to notice it, and I'm probably going to just slowly ramp up my consumption to spend it. But if I get $3000 in one lump sum, I feel like I have to save it or spend it on a long-term/big ticket item. And given that interest rates are practically zero, it's not like I'm losing a whole lot in interest.
So true. I can't stand the tax shop commercials with the people dancing because they are getting a huge return. Just means they don't understand tax planning.
The tax system is so messed up. DH paid $434 in Federal Taxes ($1115 for state). According to H&R Block (TaxCut) we'll be getting back $900 from the Fed and owe the state $500. I bought the H&R Block ($11) deal this year for the free e-filing, but as I started the free (two-day deal) TurboTax, I really like the interview process for TurboTax so much better! I took some money out of our mutual funds last year and I know I didn't enter the sales proceeds properly in H&R Block and I couldn't really find help in doing it with their software. I stopped last night just at the starting of the process in TurboTax.
And at least for the past 10 years, we've gotten back more than than what DH paid in for Fed Taxes but the state more than makes up for the difference
mom2jel said: The tax system is so messed up. DH paid $434 in Federal Taxes ($1115 for state). According to H&R Block (TaxCut) we'll be getting back $900 from the Fed and owe the state $500. I bought the H&R Block ($11) deal this year for the free e-filing, but as I started the free (two-day deal) TurboTax, I really like the interview process for TurboTax so much better! I took some money out of our mutual funds last year and I know I didn't enter the sales proceeds properly in H&R Block and I couldn't really find help in doing it with their software. I stopped last night just at the starting of the process in TurboTax.
And at least for the past 10 years, we've gotten back more than than what DH paid in for Fed Taxes but the state more than makes up for the difference
My automatic assumption is that you get back more than you paid in due to refundable credits (like Additional Child Tax Credit). States don't offer the same refundable credits... so, thus you owe there and get back Federal.
We always have the same... get back Federal... owe State.
This year... I sadly think we're going to owe on both.
MadAnthony said: joyrae said: agreed. i see no point in refunds. if you can adjust your withholding so that the amount taken out closely matches your total tax due... that's the way to go. they don't give US interest free loans... why do the same for them??
(yes... I know... I know... )
I usually get a couple grand back, and I have no plans to adjust my withholding. Sure, from a strictly numbers sense this doesn't make sense, but from a human behavior sense it does. If I get an extra $50 a paycheck, I'm not likely to notice it, and I'm probably going to just slowly ramp up my consumption to spend it. But if I get $3000 in one lump sum, I feel like I have to save it or spend it on a long-term/big ticket item. And given that interest rates are practically zero, it's not like I'm losing a whole lot in interest.
I now that I should owe Uncle Sam money each April, but psychologically I still enjoy getting a small refund. Hey, I'd rather lend the money to the government than force it to sell bonds to China......
sayhey said: I now that I should owe Uncle Sam money each April, but psychologically I still enjoy getting a small refund. Hey, I'd rather lend the money to the government than force it to sell bonds to China......Better to sell bonds to the Chinese - they will be the ones left holding the bag when we decide to inflate.
MadAnthony said: joyrae said: agreed. i see no point in refunds. if you can adjust your withholding so that the amount taken out closely matches your total tax due... that's the way to go. they don't give US interest free loans... why do the same for them??
(yes... I know... I know... )
I usually get a couple grand back, and I have no plans to adjust my withholding. Sure, from a strictly numbers sense this doesn't make sense, but from a human behavior sense it does. If I get an extra $50 a paycheck, I'm not likely to notice it, and I'm probably going to just slowly ramp up my consumption to spend it. But if I get $3000 in one lump sum, I feel like I have to save it or spend it on a long-term/big ticket item. And given that interest rates are practically zero, it's not like I'm losing a whole lot in interest. Just filed yesterday and am "getting" $2350 refund, $1600 of which will go to the second 1/2 payment of my property tax and the rest to homeowners annual premium. Whee. But at least I have the money to pay them.
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