Tax Refund (for 2011 Taxes)

[wSelwyn]

So, last month I got my tax refund for 2011. Picked me up ~$450 of new equipment.

Took the plunge into AG, and also invested in a stir plate & all sorts of other equipment.
A while back I got a 5gal pot, which now serves as my HLT.

I'm back to my old ways & am now borrowing a 10.5gal pot from a friend when I brew (and he isn't). Sadly, my refund just wasn't awesome enough to also afford a new brew kettle to call my own.

What are you all getting to improve your set-up, thanks to Uncle Sam?
(Assuming you don't owe money).

 

[ehedge20]

Well last year all of my refund went into my AG brew stand. This year SWMBO got it all

 

[Airborneguy]

Nothing brewing related this year. Unfortunately, my tax return is contributing to a "temporary" downsizing of my equipment. We're renovating pretty much the whole house and I'm losing my dedicated brewing room until we move in about 2 years. So my 2014 tax return (hopefully), will be for my "re-updrades"!

 

[Jayhem]

SWMBO wants to get a new bed to replace our dilapidated mattress with this year's tax return. I continue to collect my brew equipment one piece at a time.

 

[Bmorebrew]

I went out and bought a couple of sacks and several pounds of hop pellets. Its gonna be a drinkin summer!

 

[cardinalsfan]

i got nothing....my federal return was just enough to cover what I owe to the state.

 

[stratslinger]

My tax return... wound up delaying my purchase of a pump by a month. Wound up owing about $185 when all was said and done. Just means Uncle Sam didn't get to collect any interest on my money over the course of the year, I suppose.

 

[ktblunden]

I used a small portion of the return to pick up a couple pounds of hops (should take care of the next 2 IPAs and a couple less hoppy beers) and a big aluminum pot. Our first child is on the way in July, so the bulk of the refund went to paying down some debt and getting some money set aside for whatever we don't get at the shower.

 

[ReverseApacheMaster]

Nothing beer related. Wife and I took in a big return because she forgot to change the exemptions with her employer after we got married mid-year and we had a lot come back thanks to my enormous school expenses. So we are putting aside some cash for our anniversary in May and a little in savings but the lion's share goes to making a small dent in my student loan debt.

 

[Jayhem]

The only reason we got a return was from mortgage interest deductions.

IRS - "We have what it takes to take what you have!"

 

[Bobby_M]

Geez guys, adjust your W4s already.

 

[The_Dog_42]

Geez guys, adjust your W4s already.

I need to do this...the IRS just slapped me with a $2600 bar tab...no goodies for me.

 

[Quaffman]

Thanks to my wife and federal tax laws we got a good return. Probably just ingredients though since the wife upgraded my kettle and bought me a burner for my birthday. I know it's just to get me out of the kitchen though. Nothing like cleaning wort residue off you kitchen cabinets months after you brew!

 

[joelrapp]

Buying Uncle Same an AG setup this year . Better make me some damn good beer. Strike that better make everyone else damn good beer....wait nevermind they aren't getting an AG set up it is going to pay for Obamacare.

 

[HawksBrewer]

We got a new couch and an extra grand for the savings account... wait, I mean checking (is it gone already?)

 

[bratrules]

My wife is getting me a kegerator. With are joint tax returns I didn't get crap back for 2011 but she did. Beside the IRS lost my 2009 taxes so now they say I owe them lol. But hopefully ill be the owner of a new kegerator soon =0)...

 

[stubbornman]

 

[Tinga]

bought myself a mill and I'm going to be getting a sack of grain and maybe a pound of hops this weekend. going to be nice to think "hey I wanna brew right now" and be able to do it.

 

[weirdboy]

Geez guys, adjust your W4s already.

I don't know about the other people here, but as a small business operator you of all people should be aware that income can be unpredictable, and as such it is not always possible to adjust your withholding to compensate.

We are getting back something like $1k this year, but I went into the meeting with our accountant prepared to pay $3-5k. I don't think we're going to do anything brewing related with the money, since we have a couple other very large bills due this month.

 

[Jayhem]

haha.

I never did understand why people who work for the man get all excited when they get a tax refund. It's just a way to force you to save I suppose but the government is making money off the money they owed YOU all year!

 

[bratrules]

haha.

I never did understand why people who work for the man get all excited when they get a tax refund. It's just a way to force you to save I suppose but the government is making money off the money they owed YOU all year!

hahaha +1 for sure!!!

 

[beergolf]

What's a tax refund? .........

I have not had one in so long I cannot remember.

 

[rjsnau]

haha.

I never did understand why people who work for the man get all excited when they get a tax refund. It's just a way to force you to save I suppose but the government is making money off the money they owed YOU all year!

The reason I do it is this... We got a $4k tax refund last year between state and federal. Even if I put this in a savings account at the beginning of the year in a savings account that beats most on the interest rate (1%), I am looking at about $40 in interest before the taxes I would pay on the interest. That is the "cost" I am paying for having the government use my money. I am ignoring investing in the stock market because year to year it is very risky.

The benefit I see is this. 1) I don't have to worry about owing unless we have a MAJOR change in something in our lives so less headache and stress around April. 2) We are good at saving for things we want to purchase (No credit card debt at all) and also put 15% away for retirement. This is just an extra way to save though. 3) It forces you to live on less than you make. 4) I don't miss $150 per paycheck but I sure notice $4k once a year. 5) we are fully aware that this was our money to begin with so we don't treat it as "free money to blow" The past 2 years we have been saving it to pay cash for a newer car. 6) Lastly, it makes me look forward to doing our tax return and motivates me to get them filled ASAP so I don't wait till the last minute.

Those benefits are way worth the $40 opportunity cost. To each his own but I have never regretted withholding more and hate when people tell me I am dumb for giving the govt free money.

Unfortunately none of it goes towards brewing. Maybe after we have a new car.

 

[jIM_Ohio]

I don't know about the other people here, but as a small business operator you of all people should be aware that income can be unpredictable, and as such it is not always possible to adjust your withholding to compensate.

We are getting back something like $1k this year, but I went into the meeting with our accountant prepared to pay $3-5k. I don't think we're going to do anything brewing related with the money, since we have a couple other very large bills due this month.

+1
I am a self employed financial planner and echo this comment- some years I cannot write off things, and other years I can, so the refund fluctuates.

The reason I do it is this... We got a $4k tax refund last year between state and federal. Even if I put this in a savings account at the beginning of the year in a savings account that beats most on the interest rate (1%), I am looking at about $40 in interest before the taxes I would pay on the interest. That is the "cost" I am paying for having the government use my money. I am ignoring investing in the stock market because year to year it is very risky.

The benefit I see is this. 1) I don't have to worry about owing unless we have a MAJOR change in something in our lives so less headache and stress around April. 2) We are good at saving for things we want to purchase (No credit card debt at all) and also put 15% away for retirement. This is just an extra way to save though. 3) It forces you to live on less than you make. 4) I don't miss $150 per paycheck but I sure notice $4k once a year. 5) we are fully aware that this was our money to begin with so we don't treat it as "free money to blow" The past 2 years we have been saving it to pay cash for a newer car. 6) Lastly, it makes me look forward to doing our tax return and motivates me to get them filled ASAP so I don't wait till the last minute.

Those benefits are way worth the $40 at the most opportunity cost. To each his own but I have never regretted withholding more and hate when people tell me I am dumb for giving the govt free money.

Unfortunately none of it goes towards brewing. Maybe after we have a new car.

You might owe $10 in interest on that $40, that assumes 25% tax bracket... The logic you used (in italics) is not very logical.

It is better to have a tax problem than an income problem 100% of the time. The government does not have a 150% tax rate (where you make $X and owe 1.5*X). The worst case is 35%, and you have to be making mid 6 figures before that even comes into effect.

 

[rjsnau]

You might owe $10 in interest on that $40, that assumes 25% tax bracket... The logic you used (in italics) is not very logical.

It is better to have a tax problem than an income problem 100% of the time. The government does not have a 150% tax rate (where you make $X and owe 1.5*X). The worst case is 35%, and you have to be making mid 6 figures before that even comes into effect.

Not sure I follow you here. I am just talking about my withholdings and looking at two options. Keeping my withholdings high which I am doing now, or reducing them so I get zero tax refund and putting the extra money every paycheck into a savings account. My $40 came into play saying that is about the most I could ever get in interest from lowering my withholdings and putting it in a savings account.

 

[Mongrel]

The reason I do it is this... We got a $4k tax refund last year between state and federal. Even if I put this in a savings account at the beginning of the year in a savings account that beats most on the interest rate (1%), I am looking at about $40 in interest before the taxes I would pay on the interest. That is the "cost" I am paying for having the government use my money. I am ignoring investing in the stock market because year to year it is very risky.

The benefit I see is this. 1) I don't have to worry about owing unless we have a MAJOR change in something in our lives so less headache and stress around April. 2) We are good at saving for things we want to purchase (No credit card debt at all) and also put 15% away for retirement. This is just an extra way to save though. 3) It forces you to live on less than you make. 4) I don't miss $150 per paycheck but I sure notice $4k once a year. 5) we are fully aware that this was our money to begin with so we don't treat it as "free money to blow" The past 2 years we have been saving it to pay cash for a newer car. 6) Lastly, it makes me look forward to doing our tax return and motivates me to get them filled ASAP so I don't wait till the last minute.

Those benefits are way worth the $40 opportunity cost. To each his own but I have never regretted withholding more and hate when people tell me I am dumb for giving the govt free money.

Unfortunately none of it goes towards brewing. Maybe after we have a new car.

I'd worry more about keeping your retirement money in a 1% savings account than the withholding. At 1% you're losing money to inflation.

 

[rjsnau]

I'd worry more about keeping your retirement money in a 1% savings account than the withholding. At 1% you're losing money to inflation.

Retirement money is in Roth and 401k, both invested in mutual funds. I used the savings account because that is where we save money that is going to be used in the next 3-5 years.

 

[Bobby_M]

Understanding the implications of withholding and making a conscious choice to continue doing so is way different than the mindless "hooray" that many people go through every year. You'd be surprised how many people respond to such scolding as "wait, what?" How many people have worked for 20 years and don't even really know what a W4 is for?

Sure, income fluctuates, especially for self employed but I'm mostly talking about people with a known salary. If you got 4k back last year and nothing life changing is happening, it's perfectly logical to backoff withholding even a small amount and see how it works out. If not for practical reasons, at the very least for the principal of it. F the man.

There's also the group of people who say, well, I couldn't handle having to owe anything so I'd rather overpay. That's really sad that you let yourself live right to the very edge of your means. It must be really stressful. If it's not the tax man, what happens when the roof suddenly leaks or you blow a head gasket on your car? Emergency fund people!

 

[Veritas]

As a "previous" minority owner of an S-corporation (that dissolved its partnership), I will be able to write off the business loss on my investment from my K1 over the next few years.

Since my bills are paid,I have an appropriate emergency fund in liquidity (savings) and college funds are fully stocked for my kids (who are in college now) and my equity-to-debt ratio is good, I decided to buy myself a toy. (wait for it...)

A 14 gallon heated/cooled conical from Morebeer.

Yes, I know I don't need it. Yes, I already have a 21 cubic foot freezer with a dual-stage Ranco controlling the cooling and ceramic heating for fermentation control. I admit that it's an indulgence. Fortunately, I have a SWMBO who loves beer as much as me. Life is good! I'll post some brew-porn once I receive the unit.

BTW, The Morebeer folks are teasing me by sending the extension legs and wheels for the unit next week; a full 5 weeks before completing my conical build... something about that just seems wrong...

 

[seatbelt123]

As a "previous" minority owner of an S-corporation (that dissolved its partnership), I will be able to write off the business loss on my investment from my K1 over the next few years.

Since my bills are paid,I have an appropriate emergency fund in liquidity (savings) and college funds are fully stocked for my kids (who are in college now) and my equity-to-debt ratio is good, I decided to buy myself a toy. (wait for it...)

A 14 gallon heated/cooled conical from Morebeer.

Yes, I know I don't need it. Yes, I already have a 21 cubic foot freezer with a dual-stage Ranco controlling the cooling and ceramic heating for fermentation control. I admit that it's an indulgence. Fortunately, I have a SWMBO who loves beer as much as me. Life is good! I'll post some brew-porn once I receive the unit.

BTW, The Morebeer folks are teasing me by sending the extension legs and wheels for the unit next week; a full 5 weeks before completing my conical build... something about that just seems wrong...

Nice! I like your priorities... Nice job with the finances and sweet beer rig.