Finished Filing Taxes

[talisyn]

I remember the old days where you had to mail your 1040s to Fresno or Ogden then wait over 6 weeks for your refund (if you get one). This e-file took me about 1 hr (cause I messed up a link lol) and I'll get my refund in a few weeks. I've e-filed for about 6 years now (basically when it started). I guess what I'm saying is, WAHOOOOOO!

Am I the only one that does tax forms for fun?

[miztrniceguy]

We dont do them for fun, we do them to get a giant refund.

[Guest]

We dont do them for fun, we do them to get a giant refund.

If you're getting a giant refund, you just wasted your money. Letting the government hold your money for an entire year interest-free is a bad investment strategy.

Adjust your withholding taxes and put the extra money you get in your paycheck in a CD at your local bank. It will gain hefty interest and your "refund" would be bigger!

Really, people... it's not rocket science.

[pam]

I was going to say the same thing miztrniceguy but now I'm afraid to. You've been thoroughly chastized.

But I am another that enjoys the large refund each year. I plan a major purchase each year around it. Yes I know all about adjusting my withholdings etc. But I know myself too well to know, that if I were to rely on myself to put that money away, I would not have that money each year to make the purchase.

[Guest]

I was going to say the same thing miztrniceguy but now I'm afraid to. You've been thoroughly chastized.

But I am another that enjoys the large refund each year. I plan a major purchase each year around it. Yes I know all about adjusting my withholdings etc. But I know myself too well to know, that if I were to rely on myself to put that money away, I would not have that money each year to make the purchase.

They have these electronic banking systems now. You can schedule it to take money away from you every paycheck time. I do this for tithing. If you can do it for tithing you can do it for big purchases. Especially you, pam! You're the financial responsibility queen!

[pam]

Especially you, pam! You're the financial responsibility queen!

hahaha hardly

[Guest Alana]

I do like doing taxes:) I do them for my brother in law and my parents and myself. Of course I love getting a refund, especially since we have kids and qualify for the EIC. It's kinda of weird though, I have my own business, and don't pay taxes throughout the year, and still we get this refund, but hey I'm not complaining:P

[lydlou]

If you're getting a giant refund, you just wasted your money. Letting the government hold your money for an entire year interest-free is a bad investment strategy.

Adjust your withholding taxes and put the extra money you get in your paycheck in a CD at your local bank. It will gain hefty interest and your "refund" would be bigger!

Really, people... it's not rocket science.

i get a giant refund but its not becase of withholding. its becase of the child tax credit, earned income credit, making work pay, and other hiden goodies so i get 4 times the amount back the was witheld. Ofcourse that only works if you are dirt poor, but hey, i can afford a house and internet, so i'm not complaining.

[talisyn]

I know about adjusting my tax rate too. I feel it's safer for my income to have just a little bit extra going to the gov't in case I made a mistake, and it's a little bit patriotic to give my gov't a loan for a year

The sad thing about the EIC is not that it's 'woah free money, we're going to Disney Land!', it's more 'thank heavens we can pay rent and buy food this month' for a lot of people.

[miztrniceguy]

A large portion of my refund comes from tax credits also. I have about 3000 in fed withheld. I am well aware of being able to adjust my deductions. I also use it for a major expense. This year it will be a vacation to new york.

I don't feel I wasted it. Smaller increments added to my paycheck are far more likely to be wasted on a trip to BK or QT.

[Guest Godless]

I'm not sure if "fun" is the word I would use, but e-filing certainly makes tax filing easier, especially since I don't have to file state taxes.

[Guest Godless]

The sad thing about the EIC is not that it's 'woah free money, we're going to Disney Land!', it's more 'thank heavens we can pay rent and buy food this month' for a lot of people.

I know exactly what you mean.

[MorningStar]

If I feel like I want to hurt someone when I do my taxes, does that mean I like it?

I do get a refund. There's just always a problem I run into while I'm doing them and the fear that maybe this will be the year I screwed up and owe. I've never owed, so it's probably an irrational fear. When I do the taxes, everyone else has to leave the house because I'll probably yell at someone.

[nbblood]

If you're getting a giant refund, you just wasted your money. Letting the government hold your money for an entire year interest-free is a bad investment strategy.

Adjust your withholding taxes and put the extra money you get in your paycheck in a CD at your local bank. It will gain hefty interest and your "refund" would be bigger!

Really, people... it's not rocket science.

You, of course, are assuming that ALL of the tax refund comes from withholdings. This is absolutely not correct in a lot of cases. Things such as earned income credit (EIC), child care credits, education credits, home-buying credits, well basically anything that says "credit" simply cannot be accounted for in the way you explain.

And, as Pam has duly pointed out, it is a means for some people to apply self-discipline. To each their own.

Hefty interest? Not hardly. A 12 month CD (assuming we're using the same time period as the tax year) is most certainly NOT going to get "hefty" interest. To get an interest rate that will come close to keeping up with inflation, you can expect to tie your money up for 3 years or more. That's just to break even with inflation. If you want to actually make money, you need to invest it for longer than that. Oh yeah, don't forget Uncle Sam is going to get his cut of what you make in interest too. The advantage of CDs is NOT that they make a "hefty" interest. It's that they make a little interest while being very safe investments. Each investor should evaluate his/her situation and determine where to apply their investment $$. I can think of a whole lot better things than CDs that I would do with my money. But, for others, it may be just the thing.

Have you calculated what a $10,000 CD will get you over a year? Not much really. Particularly these days. Basically $10,000 will get you $100-150 over a year. Worth it? Depends, person to person. I almost make that in my savings account., but it still loses to inflation.

Basically I've decided that I'm willing to forego what little interest I may have earned over a year for the hassle-free method of providing myself a bonus at the beginning of the year. Now, if you're getting a $500,000 refund, maybe you should consider making adjustments. Truth is though, everybody wants to claim it's some huge mistake to let the government keep your money interest-free. But for most taxpayers it isn't the travesty that some make it out to be. It is all relative to your particular tax situation and your particular personality and preferences.

[talisyn]

If I feel like I want to hurt someone when I do my taxes, does that mean I like it?

I do get a refund. There's just always a problem I run into while I'm doing them and the fear that maybe this will be the year I screwed up and owe. I've never owed, so it's probably an irrational fear. When I do the taxes, everyone else has to leave the house because I'll probably yell at someone.

I've been totally paranoid about paying the right amount in taxes ever since the year I had a $400 tax liability Talk about scared straight!

[jadams_4040]

I remember the old days where you had to mail your 1040s to Fresno or Ogden then wait over 6 weeks for your refund (if you get one). This e-file took me about 1 hr (cause I messed up a link lol) and I'll get my refund in a few weeks. I've e-filed for about 6 years now (basically when it started). I guess what I'm saying is, WAHOOOOOO!

Am I the only one that does tax forms for fun?

Well guess the government does do some things right!:)

[Dravin]

$0 liability and $0 refund. :)

[pam]

Well now for all of you that have done their taxes already....you can now claim any contributions to Haiti relief on your 2009 taxes instead of the 2010.

[bytor2112]

If you're getting a giant refund, you just wasted your money. Letting the government hold your money for an entire year interest-free is a bad investment strategy.

Adjust your withholding taxes and put the extra money you get in your paycheck in a CD at your local bank. It will gain hefty interest and your "refund" would be bigger!

Really, people... it's not rocket science.

Hefty huh? Not CD's my friend. But, investing the money would be a wise decision, particularly since the market is still 4000 down from the October 2007 high.

[bytor2112]

Well guess the government does do some things right!:)

Like what? Blow things up and building roads? You can't be serious......snap out of it jadams. Have you ever seen the tax code????????? Just seeing it should make anyone, liberal or conservative demand reform.

[Guest]

Hefty huh? Not CD's my friend. But, investing the money would be a wise decision, particularly since the market is still 4000 down from the October 2007 high.

Okay, I mis-used the word hefty. Something better than nothing then.

It is the principle of the thing.

It is crazy how people use the government to manage everything - especially their hard-earned money - because it is "convenient?". Even if it means they make no gain on that said money at all.

The same reason why people went crazy when Social Security proposal to privatize was made. Americans actually rely on the government to manage their retirement fund. It's quite mind-boggling.

[StrawberryFields]

We have actually written checks (LARGE ones) to pay the government and mailed them April 14th. Wise or Unwise? BTW, we always make sure there is no penalties or interest included.

[Guest]

We have actually written checks (LARGE ones) to pay the government and mailed them April 14th. Wise or Unwise? BTW, we always make sure there is no penalties or interest included.

I do the same. I put my maximum deduction on my W2 - more than I'm qualified for, and pay the difference on April 1 - I give myself 2 weeks allowance for contingencies. I put money away on savings to use to pay taxes in April.

[talisyn]

Wouldn't it make more sense to get the taxes you have to pay taken out as you get your paychecks instead of saving the money to pay the taxes not paid during the year? Unless your savings account is a lot better than mine If I did that I'd earn probably about $0.50 through the year lol.

[bytor2112]

Okay, I mis-used the word hefty. Something better than nothing then.

It is the principle of the thing.

It is crazy how people use the government to manage everything - especially their hard-earned money - because it is "convenient?". Even if it means they make no gain on that said money at all.

The same reason why people went crazy when Social Security proposal to privatize was made. Americans actually rely on the government to manage their retirement fund. It's quite mind-boggling.

Most people are just uninformed and can you blame them, the tax code is ridiculously complex and convoluted.

Edited January 26, 2010 by bytor2112