Income Tax Refunds

[TsPoet]

If I get any back, it will go toward a velomobile.

[Catrin]

It went into savings...and will come back out to help pay for personal training and my LHT.

[Melalvai]

We got back everything we paid and then some more! I was very surprised, and I didn't believe it for a while. It's because my husband is in school. I sent $100 to each of my two charities (Missouri Bicycle Federation and the National Postdoctoral Association) and the rest is going toward his student loans.

This is an interesting thread to compare to another one that ran a few years ago. I think Bush was in office then and we got some economic stimulus money (it wasn't an Obama original idea you know). Back then, we said we were paying down debt or putting it in savings. Neither activity stimulates the economy. This time around it sounds like we are spending our windfall more than saving it.

Of course what TE'ers do doesn't necessarily reflect what the rest of the nation does!

[Veronica]

I'm thrilled that we managed to come out pretty much even. The Fed owed us a little. We owed CA a little.

Last year we got a huge return and bought a new to us bike hauler. Since it's a 4 wheel drive SUV, we're able to plan our own trip to the North Rim for mountain biking this summer instead of going with a tour company.

Veronica

[bmccasland]

I haven't even started

But I have a wish list, mostly having to do with kitchen renovations - new counter tops, refurb my existing cupboards, new refrig. Depending on the amount of refund, if any will depend on what I get to do. Then there is saving for a vacation that involves flying out of here, thus requiring boarding the furry beasts.

[NoNo]

Sometimes I feel like I should pay to have someone do my taxes because I hear people talk about getting huge returns back and I wonder what I'm doing wrong, like I'm missing out on some deductions. At any rate, I should get a few hundred back, which will be going straight into savings. This is a huge change over the past few years when it went straight to paying off credit cards. Oh the joy of not having those dumb cards weighing me down. I'm hoping to get back to Italy this summer, but I'm not sure if I'll be able to save up enough. If that doesn't work, I'm thinking a kayak and rack for my car so I can make my own trips

[limewave]

If we get any back, which I don't think we are, it will go to paying debt.

Our salaries are still reduced, thanks to the crummy economy. We owe my parents a chunk of change (I NEVER thought I'd have to borrow money from them) and they've asked us to make good on it by May.

And our washing machine died just before Christmas. We did a 6 mos same as cash deal as we had no $$, so we need to somehow pay that off.

I'm just crossing my fingers we won't owe the government more $$ too.

[TsPoet]

Sometimes I feel like I should pay to have someone do my taxes because I hear people talk about getting huge returns back and I wonder what I'm doing wrong, like I'm missing out on some deductions. At any rate, I should get a few hundred back, which will b

I think that means you are doing it right. Tax refunds mean you've been letting the gov't hold onto your money.

[GLC1968]

I think that means you are doing it right. Tax refunds mean you've been letting the gov't hold onto your money.

Yeah, this.

We are getting a huge refund because we opted to pay extra each paycheck to cover the fact that we've owed every year since we got married. We just opted to pay TOO much. The good part is that now we know that we can live with thousands less without too much pain, but the bad part is that the government got to earn interest on that money, we didn't. It was a stupid mistake.

I'd be much happier breaking even every year like I used to when I was single.

[ny biker]

I used to owe/get back very little each year. I made changes to my withholding to keep things even. After I bought my condo I started getting bigger refunds due to the mortgage interest deduction despite the fact that I changed my withholding to try to account for it. So I just gave up.

[NoNo]

I'm sure the fact that I rent plays a large part in my numbers being smaller than other people's . I also have them take the max out of my paycheck. I should probably get an accountant anyway as I'm trying to start a business and have no clue where to start with that stuff. Don't need the IRS on my case down the road because I did something wrong now.

[bmccasland]

I should probably get an accountant anyway as I'm trying to start a business and have no clue where to start with that stuff. Don't need the IRS on my case down the road because I did something wrong now.

Nono - I had a tax accountant for a short while and learned a lot from him. His prices weren't much different from the chain tax prep agencies. I would say go for the tax accountant, especially if you're starting a business. He/she will help you separate business expenses from home and maintain some level of sanity check. The only reason I no longer use the tax accountant is that I changed states.

[tulip]

I just dropped all my stuff off at the accountant's this afternoon. I am not inclined to do my own taxes anymore (not since I could do a 1040 EZ). To me it's well worth the expense of having them done, on time, and correctly.

But some people like to do them and know what they are doing. Makes my eyes glaze over.

[ginny]

I'm expecting some $$ back - bought a house this year and also put in a highly efficient wood burning insert (for some reason, I get 30% of that back too).... I plan on fully funding my ROTH IRA for the year. Depending on how much over that I am, I will probably put it into the 'house savings' fund. We are redoing a bathroom in an 80+ year old house and ... WOW! talk about money pit! We also hope to redo the basement at some point. Oh yeah, and we have to re-grade and put in a French drain and ... and... and... it sure is a good thing I love my house!

[moonfroggy]

we have an arrangement where we do our own taxes but then have someone go over it and make sure everything looks good. it is cheaper than having him do the taxes for us but makes sure we get the maximum back and that everything is done right.