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homebrew and tax RETURNS

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anderj

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for those of us who are lucky enough to get them, anybody blowing a stupid amount of money on some cool new gear?

Myself, I just ordered a barley crusher and weldless sightglass fittings for the HLT
total damage around 150, not so bad

-ander
 

Soulive

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I need to get my drip tray and forward sealing faucets. Maybe another Better bottle as well...
 

Bobby_M

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When my check comes, I'm going to deposit it into my high yield money market account at Resourcebankonline.com and then continue spending all kinds of obscene money building my single tier brewstand. I hope everyone owns Lowes and HD stock because I'm about to single handedly make it blow up.
 

homebrewer_99

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anderj said:
for those of us who are lucky enough to get them...
What do you mean by "lucky"????

Did you know the Govt's just giving you back your own money???

And you were such a nice citizen for not charging them interest...;)

The trick is to make that number as small as possible, getting back and/or paying in. Any overpayments could be put into an interest bearing account and you'd be better off.:D
 

raceskier

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Ditto Bobby! I usually end up having to send in a couple small checks to state and Feds.

That said, I've been setting aside a few bucks. I'm thinking a pump and a mill.
 
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anderj

anderj

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wow, that was a pretty brutal attack for getting a refund check. And I even claimed "0" for the last six or so paychecks in 2007 so I wouldn't be putting more money into my overpayment.

whatever, now I will have control over my crush and be able to easily see how much sparge water I have left and what temp it is

I have no kids, no wife, a pretty standard job until I am done cowering in the post-grad school rest, they take money out of my check and give it back later. Of course I see the benefit of taking that same amount and putting it in another account and I may do that in the future but this seems to work well for now.
Right now I live check to check and I could see myself raiding that cache when I get a little low on the funds.
-ander
 

sirsloop

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I like to think up creative ways to increase my tax return over what it would normally be. Lol... if I get one parking ticket in NYC thats $120 bucks, so this time of year i come up with a way to get back $120 in deductions ;)

It involves a personal business and a well thought out schedule c.
 

david_42

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Up until I retired, I consistently got large refunds. I was doing max on the IRA, max on exemptions and max. on everything else that was recommended by a very good tax CPA. The structure of the tax law made it impossible to keep the withholding down to my "real" rate.

But, no refund for me this year. No wages either. There's some back-averaging in my future.
 

brewt00l

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Bobby_M said:
Sorry for the rant, I really do want to help people who don't realized the error in big refunds.
Just imagine the impact on the government and their related cost of funds if the majority of tax payers realized this and were capable of tax planning/adjusting their withholding & quarterly payments accordingly....There is an argument that burden, to some degree, would then shift to those of us who do.

Anywho...if you're getting a refund, enjoy!
 

brewt00l

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Bobby_M said:
Except my rant is limited to my pals here on HBT. I doubt it will become a widespread thing. Ander, I'm not attacking you man. I'm trying to show you the light.
I hear ya...it's a tough message to drive home with folks. Then again, there is a reason why club/vacation accounts exist at banks.
 

Soulive

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I agree with Bobby and I won't be getting much back because I do the same thing. The only thing is, my income may be higher than it looks which means my tax bracket may be lower than it could be. I also have the mortgage interest as a deduction to boot :D
 
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anderj

anderj

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I mis-spoke (typed?) I actually claimed exempt so no taxes were taken out. I am not sure of the legality but I got six nice checks in a row. I thought of it as just reducing the amount of my refund.
-ander

oh, and no offense taken
 

Beerthoven

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I'm getting a refund, and I'm spending some of it on a big brew pot, a refractometer, a finishing gravity hydrometer, a digital thermometer, and ingredients for my first batch of mead.

I'm also increasing the number of exemptions on my W-4 so that so much isn't taken out every month. The big refund check is nice, but I'd rather that money not be taken out at all.
 

cubbies

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I don't come anywhere close to understanding money. If that makes me a dolt, well, I guess color me a dolt then. I do okay for myself when it comes to money. I have a pretty successful 401(k). I have some stocks that up until about 4-5 months ago were doing okay. However, I do get large refunds too. I claim 0 (maybe someone could explain to me why it would be beneficial otherwise) because a number of years back when I was working in a restaurant I ended up owing $600 to the fed. Sucked balls. The reason being was because I claimed 1. So, I switched and I have gotten refunds ever since. I would rather give the government an interest free loan than have to cut them at check. However, the main reason my returns have been so large recently has been because of tuition. Dont know if there is anything I can do about that. So, if anyone who knows more about $ wants to spend the time to enlighten me, I will listen. Otherwise, I will probably stick with what I am doing.

As for the origin of this thread. Nothing over the top. 1 6 gallon better bottle, a new digi thermometer, and a extension onto my regulator so I can serve at a different pressure than I carb. Oh and Radical Brewing. Looking forward to that.
 

McKBrew

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I claim a high amount of deductions, but with child tax credits and some of the other credits I qualify for I still got a significant tax return. I don't think there is much more I could do to lower my return. Sure the government may have made money off me, but since I turned around and gave money to Costco, Northern Brewer, the LHBS, and the guy I bought my craigslist stuff from I'm sure they appreciate the fact that I got a big tax return.

So what did I buy with my money?

61" Big Screen TV
Misc homebrew supplies, fittings, and ingredients for first AG.
Center channel speaker
Kegging equipment and minibrew fermenter
Beer

and the SWMBO bought some home decor items, groceries, and paid some bills.
 

sirsloop

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The point bobby was getting to is instead of giving those thousands of dollars to uncle sam for the year, put them in a interest earning account and make interest on your money. Heck, if you took that cash and bought municipal bonds you'll end up with a bunch of tax free interest earning investments. Giving uncle sam 5 grand for a year and being happy about getting it back silly. I don't think its smart to consider taxes a toys savings account. Thats what uncle sam wants you to think. You give them extra money all year interest free, then at the end of the year they give you a lump sum and you end up spending it all. It works great for them!
 

Soulive

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sirsloop said:
You give them extra money all year interest free, then at the end of the year they give you a lump sum and you end up spending it all. It works great for them!
Exactly and to be redundant, that money that they're borrowing throughout the year could be earning you interest somewhere else. Even if you still want that money at the end of the year, throw in an interest earning account and take it out at this time of year. Its the same thing except that you're making money on your money. Not to mention you can get to it when you need it rather than being locked into getting it back this time of year only...
 

Brewing Clamper

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The SWMBO and I have been trying to get the refund amount down to nearly even for a few years now. We've been doing it slowly because we don't want to get hit with a bill instead! Anyway, we're expecting another child in april so that will help with the w4! :D
 

CodeRage

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For a while turbo tax was offering a thing where you could get some of your refunds in gift certificates . The benifit was I could buy a $100 gift certificate from lowes for $90. Tax returns would normally go into our fixer upper hous any ways so I was in a sense getting %10 interest on my tax returns. Normally we get between $500-$1000 a year. This year though I get a sizeable promotion, lots of overtime and our first child. We over payed BIG time.

We first eliminated alot of our debt then;
47" LCD TV
convection range

For the brewery I got 2 march pumps, 2 kegs, and some fittings.
 

sirsloop

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Soulive said:
Not to mention you can get to it when you need it rather than being locked into getting it back this time of year only...
Good point... if you hit the rocks and need 2 grand by Dec 1, Uncle Sam isn't gonna give you back your extra money that you've been handing over all year.

Kinda on subject...The same applies to over-paying your mortgage. Instead of double paying on your mortgage, find some other revenue source like a REIT or Muni that pays equal or more than your mortgage interest rate. You will maximize your tax return based on your mortgage interest paid, and keep your money liquid at the same time. Once you give money to the bank for your house its GONE, and its not making you any money. They are not going to give it back unless you go through considerable effort (refinance)
 

CodeRage

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Bobby_M said:
You know, not only is earning interest on it better (do I have to say that?) but you'll be less likely to treat it like a shopping spree...
Still on your soap box? ;)

Edit:

That might have sounded a little snarky.. Sorry.

Bobby I am very impressed to see your concern for every one's financial well being. I honestly believe you are saying this cause you care and not to be an EAC. Some of the things you have brought to light have opened my eyes and I will be making some if not of all of your recomendations.

HOWEVER, We hav nearly irreparabley derailed this thread from the OPs intent. I'd suggest starting a new thread and let this one get back on track.
 

Bobby_M

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Virtuous said:
Still on your soap box? ;)

Edit:

That might have sounded a little snarky.. Sorry.

Bobby I am very impressed to see your concern for every one's financial well being. I honestly believe you are saying this cause you care and not to be an EAC. Some of the things you have brought to light have opened my eyes and I will be making some if not of all of your recomendations.

HOWEVER, You have nearly irreparabley derailed this thread from the OPs intent. I'd suggest starting a new thread and let this one get back on track.
So right. I'm deleting my posts here.
 

SayWhat1

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Yeah, anyway... If I weren't moving I'm getting enough back that I'd probably invest in a conical. But, I'll probably end up spending it on expenses and bills during the move.
 
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