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Home Brew Forums > Home Brewing Community > General Chit Chat > Tax Time... excited or DREADING it?

View Poll Results: How do you feel about tax time?
HATE IT... will be paying in, again... ugh 6 19.35%
Neutral... I don't care, breaking even, doesnt matter 5 16.13%
Like it... Getting some hard earned money back to save 16 51.61%
LOVE IT... Getting my FREE GIFT from Uncle Sam and the money tree! 4 12.90%
Voters: 31. You may not vote on this poll

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Old 01-31-2009, 04:41 PM   #1
The Pol
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Default Tax Time... excited or DREADING it?

Well, it is that time of year again. Time for us all to kneel at the feet of Uncle Sam and beg for our money back. So, are you excited, planning a vactaion with your refund? Or, are you wishing that you could sleep through this time of year?

Our taxes are almost complete (had to run rough figures on dividends since investment 1099s dont have to be mailed til Feb 15th).

Our Return... $745
Last year... $3,600+

This is the outcome of tweaking my witholding, allowing me to keep $235+/mo. of my money, in MY pocket for the fiscal year.

Wifey seems noticeably pissed, because although I told her to expect this, she must have thought I was exagerrating about not getting much of a return.

Her: Well how are families supposed to have money for vacations if they dont have a big tax return?

Me: They budget it and save it themselves... what, you want to use the government as a saving plan? A 0% savings plan?

Her: Well, it is easier to save that way, it all comes to you at one time.

Me: Easier? Isnt it JUST the same as putting $200 of our monthly savings aside for the sole purpose of a vacation?

Her: Well... I guess so... hmph!

Me: Didnt you agree with me a year ago that it WAS NOT a good plan to tie up thousands of dollars in a 0% black hole all year long?

Her: I don't want to talk about it.

Looks like she was hoping in some small way for a "pay day"... which even if we had the return, she wouldnt have because Id toss it into mutuals anyway.

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Old 01-31-2009, 05:45 PM   #2
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Did it already. Will be getting a large lump back. I tried to change my withholdings at a former employer, but they wouldn't do it. I cashed out approx 35 k in 3 pays- GOT F*&*^% Hammered in taxes.
Now I know...


You can e-file for free if your Adjusted Gross Income is under 56K- and get your refund in 8-10 days.

http://www.irs.gov/app/freeFile/jsp/index.jsp?ck

Tax act sucked
I used H&R Block from the link.

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Old 01-31-2009, 05:59 PM   #3
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My AGI is too high... and I have to wait for my damn 1099-INT and 1099-DIV from Schwab, they dont get mailed til 2-15-09. But I esitmated those things from my statements.

I think my exemption # is something like 16 on my W-4? Some rediculous number like that to get my tax witholding in line with what I actually owe.

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Old 01-31-2009, 08:09 PM   #4
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Quote:
what, you want to use the government as a saving plan? A 0% savings plan?
Exactly, that 1.5% savings account will buy an extra beer or 2 on vacation, IF you actually save the money which very few do.
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Old 01-31-2009, 08:16 PM   #5
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I'm going to be straight up honest. I'm getting back quite a bit. We have plans to put a good portion of it toward debt, but I am buying some new items for the brewery. Tax time is one of the few times of the year that SWMBO and I have an opportunity to spend some money on ourselves. (Christmas was for the kids).

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Old 01-31-2009, 08:28 PM   #6
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Quote:
Originally Posted by budbo View Post
Exactly, that 1.5% savings account will buy an extra beer or 2 on vacation, IF you actually save the money which very few do.
Lets face it, during an "average" year you'd be making 8% on that money that you are loaning to Uncle Sam if you kept it in your own pocket. For those who follow a budget and only spend what is in that budget, it makes sense.

My friends are all excited that they are getting $4k back, and they are apologizing because I am only getting like $700 back. Um, I think it should be the other way around... dude? I am sorry that you had 0% return on $4k in 2008 I am even more sorry that you see it as a gift and will squander it (in many cases) McKbrew... your plan sounds good, paying down debt, and treating yourself!

I do what I can to leverage EVERYTHING possible (without drving myself crazy).
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Old 01-31-2009, 09:28 PM   #7
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The usual reason people will give for actually wanting to maintain a withholding that always results in large refunds:

1. I wouldn't be able to save the money if it made it to me over the course of the year.
A: Get some discipline. Force yourself to put that money away and don't touch it or use it to pay off debt sooner than later. It's compounding interest that is killing you. Hell, if you don't have debt to pay off, put it into a Roth IRA.

2. I'm worried that I'll owe and I won't have the money.
A: If you're running a budget that thin, you're F###ed anyway. Where is your 3 month minimum reserve?

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Old 01-31-2009, 10:10 PM   #8
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6 Months in reserve is a good plan- takes the pressure of if you are commissioned, not hourly. My D(*&^%** neighbor is always crying about being broke, and he makes $30 + per hour. Not a penny in the bank. 45 k down in CC debt...

I would not live like that..

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Old 01-31-2009, 10:24 PM   #9
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A scribe once told me "if you have to pay a lot of money in taxes, it is ok because that means you had a good year and made some serious $$$" I would rather make 3x more and have to pay tax than to make what I do now and get money back. just my .02

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Old 01-31-2009, 11:22 PM   #10
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Where's the option for "don't file"?

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