Taxes Done
Well, just finished up the last of my taxes. Yay! Can’t wait for that refund! I make it a point to not claim anything on my W-4, which means that I’ll get a refund most years. Not claiming anything on the W-4 means that more taxes get taken out of each paycheck. If can live with that income, then that means that I’ll get a nice refund this time of year, which works great for me!
Had a couple of firsts this year.
1) This was the first time that itemizing actually helped me out. Since I had a full year of house payments, as well as property taxes, my deductions were almost twice as much as not itemizing. Cool!
2) I filed online for the first time, using free-file from H&R Block (via irs.gov). It’s nice to be able to file online, for free. Good way to double check your math, make sure you’re including all the deductions, etc. Definitely speeds up the refund as well. With e-file and direct deposit, I should have my refund in 8-15 days. Since I’m filing so early and avoiding the late March, early April rush, I should receive it quick. Sure beats the problems I had a couple years ago when it took about 4 months to get my refund, because someone entered my social security number incorrectly. And that’s another positive of e-file - I get to enter my own information, rather than someone who’s been staring at numbers all day.
Hmm, what should I spend my refund on? Oh, yeah, replenishing my savings account, which is very much depleted right now…
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Feb 28th, 2005 at 20:41:41
Congrats Chris! Isnt it a great feeling. I know it will be one thing less I have to worry about as April 15 approaches and I am stuck at work all weekend. No taxes getting done that week. Probably no life that week
Feb 28th, 2005 at 22:51:21
UHG Chris, Chris, Chris
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W-4, which means that I’ll get a refund most years. Not claiming anything on the W-4 means that more taxes get taken out of each paycheck. If can live with that income, then that means that I’ll get a nice refund this time of year, which works great for me!
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So basically you let the government hold YOUR money for a year INTEREST FREE!! You could be getting that money, and making money with it.
BAD MOVE. Aren’t you glad you have a finance guy reading your board.
Feb 28th, 2005 at 23:22:35
One day, when I get into investing, the stock market, etc, I will do that. At this time, though, I’d rather get a refund than have to pay the government… I know it makes you cringe, but it’s what I’m most comfortable with.
Feb 28th, 2005 at 23:25:33
Oh, and now that I’m itemizing and realize how much I can get back, I can think about claiming myself on the W-4 and have more taken out of the paychecks. In previous years, when I didn’t itemize, I’d much rather the government take more out and not worry about saving up to pay them later.
Mar 1st, 2005 at 00:09:33
I’m done as well. But I dont’ get a refund. Unfortunately when you get government assistance they dont’ like to take the taxes out on your paycheck but expect you to pay it all back to them when tax day rolls around. You have to love taking an entire stipend check (and then some more) to pay bakc taxes for the whole year. Good ole Uncle Sam here’s some money from the taxpayers now pay us a tenth of that back.
Mar 1st, 2005 at 09:25:44
I would rather not pay anything in during the year, keep my money so I can earn interest on it, then pay the govt what they want. Otherwise you’re just giving them an interest free loan with your money.
I claim myself, and still get a minimal refund. But I am getting more of my money during the year.
To each their own, but I am not one for letting the govt use my money for free.
Mar 1st, 2005 at 10:41:11
Don’t get me wrong, I know what you’re saying Jeff. Up until this year, it just made more sense to me to not chance having to save up to pay the government this time of year. Like I mentioned earlier, now that I see how much I’m getting back when I itemize, I can claim myself and still get a refund.
Where do you invest your money? Stock market? My investment has been my house. It’s increased in value quite a bit since I bought it, so the investment is definitely working out for me.
Mar 1st, 2005 at 15:31:03
I invest in a couple places. First, a ROTH IRA… you cannot go wrong doing that. Second, I invest in some mutual funds. I’ve not gotten risky enough to buy stocks yet. As I get more money, I will do that. But Mutual Funds are safer and require less monitoring.
And of course I always keep an emergency fund.