Getting a few hundred back means that you loaned the US treasury money, at zero interest. :-) While savings accounts don't exactly have great returns these days, there still must have been something better to do with your money than let the treasury use it for a few months. :-)
Nice to meet you too.
Every year I see people treat their tax refund like a windfall bonus, seemingly unaware that they're spending their own money that has been withheld from them. Entire industries revolve around this practice (I'm looking at you, 'Instant Refund' tax preparation places).
Every year I wonder if those people would make those same purchasing decisions if they'd saved the money on their own. Maybe they would have, or maybe they would have budgeted more toward savings, or fixed the leaky faucet one month earlier, or whatever the case may be.
The comment to which I applied suggested an incomplete understanding of these issues, so I replied in order to offer advice not only to the commenter but also to the rest of the community.
If this somehow offends you -- well, I've been hated for worse.
April 18th, 2017 at 10:11 PM ^
April 18th, 2017 at 10:47 PM ^
April 18th, 2017 at 11:10 PM ^
April 19th, 2017 at 11:35 AM ^
dig a little deeper on that history, and the reason the goverment created IRAs and 401(k)s was becasue corporations stopped providing their employees with pension plans.
April 18th, 2017 at 11:59 PM ^
I like using my tax refund as a savings mechanism. I usually receive $2000-3000 back at the end of the year. With current savings interest rates,if you put that money in a savings account for less than 12 months you would literally earn less than $2 dollars. I understand there are other things you can do with it, but acting like its the worst financial move ever it absurd.
Also, I don't really see the anti-government point of view for holding your money. The US government is the most secure lender in world history, and I am a citizen of this country. It's fine with me.
Or you could put it in a RothIRA low cost stock index fund and potentially earn 7-10 pct tax free
I think you mean the us government is the most secured debtor in the world. Even so it isn't a great financial move to let someone hold your money interest free.
Try holding on to your tax payement for one year and see if the IRS won't demand you pay some interest or a fee for a late payment.
April 18th, 2017 at 11:56 PM ^
....so I guess you would have been fine having Bernie Madoff manage your savings!
File an extension every year because we present challenging situations to our tax folks. I'll be deadling with tax nuances, which I dislike, at least until June and sometimes into October.
Right there with you my friend. Not fun :(
Every year waiting on K-1's.
Thumbs up for annoying MLP investment taxes!!!
April 18th, 2017 at 10:09 PM ^
April 18th, 2017 at 11:53 PM ^
April 20th, 2017 at 12:29 AM ^
April 18th, 2017 at 10:54 PM ^
April 19th, 2017 at 11:10 AM ^
since my federal refund was <$40.
If you are not willing to pay for it, you don't really love it.
Then 47% of Americans don't really love it.
Willing and able are not the same thing...
Half the country is not "unable". No way.
Everyone except the truly destitute should pay something.
Government is not free. It has a cost, both financial and otherwise.
If government if free for half the country, guess what they want? More government.
Why not? It's free.
If you are able to buy that 3rd flat screen TV, you are able to help pay for the level of government that you decide to put into power.
April 19th, 2017 at 10:00 AM ^
April 19th, 2017 at 10:09 AM ^
I'll stop. I don't want to start treading into political waters.
I'm not anti-government, I've worked in 7 different Federal Governemnt agencies. That has given me this perspective:
I don't hate the government, I just want it to do half as much, twice as well.
April 19th, 2017 at 10:17 AM ^
Humblebrag?
Taxman did some serious damage here also, but me or wife don't really have any serious deductions, so...
My problem as well
April 18th, 2017 at 10:00 PM ^
So roll up the business and start anew. Transfer assets or donate them and purchase new ones. Find a local artist who will make a unique piece of art at low cost and hold onto it. 5-10 years later, have the item appraised and donate it to a charity auction. Acquire a used car for less than book value and donate at full book value. I did state you have to work a bit to reduce the burden but it is possible for middle class and above to pay less once you make tax reduction a part of every day life.
April 18th, 2017 at 10:29 PM ^
April 18th, 2017 at 11:54 PM ^
You can buy a bullet-riddled seized Beamer for less than 10k when it's worth a lot more even with the holes. Been there done that. The art is hit or miss but we've done well there. I'm not giving any specific advice, just emphasizing that there are a lot of options out there. Have you ever taken the home office deduction? Me neither, it's one of the most cited reasons for an audit. I've been audited, she's been audited, and we've always walked out with even more money in our pockets because that notice made us even more shrewd in terms of compiling the tidbits. Your mileage may vary.