What are you going to do with your Tax Returns?

[John Picard]

Nurse Outduels IRS Over M.B.A. Tuition

After getting word of the court decision, "I nearly yelled the roof off the house," Ms. Singleton-Clarke says. "I still can hardly believe it."
The IRS's rules on deducting work-related tuition are complicated and onerous, ultimately preventing most students from deducting their tuition. But this case clarifies the rules and will likely lead to more taxpayers taking the deduction, tax experts say.

 

[darkshadow0001]

Thanks to the First Time Homebuyer credit, this will be the first year in a long long time that I'm getting something back from Uncle Sam (or, more accurately, since it's a credit and not a refund, I'm getting something extra from all of you. Thanks!)..

Of course, now comes the question of what to do with the extra dough... After much deliberation, my wife and I decided on the following:

• Buy a couch.
• Pay off two credit cards.
• Get a new iMac for her.
• Get an IRA, or pay some additional principal on the mortgage (any advice here?).

And, being the nosy bastard that I am, planning out my purchases got me thinking: what will you all be doing with your tax returns this year?

Z

I, sadly, will be paying bills with my tax return

 

[Mr. Laser Beam]

As others have said, I prefer to neither owe or be owed money come tax time. A big return basically means you gave the government an interest free loan.

So? At least you get the money back. It's better than owing taxes.

 

[John Picard]

As others have said, I prefer to neither owe or be owed money come tax time. A big return basically means you gave the government an interest free loan.

So? At least you get the money back. It's better than owing taxes.

Even with today's pitiful interest rates, I'd rather have MY MONEY earning interest and owe a couple of hundred to the Government.

 

[SeerSGB]

If, IF, we get enough back-- if any at all, right now if looks like we might owe:

1) New Matress and foundation for me and the wife
2) Crib mattress for the baby due in May.
3) Savings bonds for both kids.

2 and 3 are a priority for any money coming in, 1 is a "luxury" if there's enough left over.

 

[Mr. Laser Beam]

As others have said, I prefer to neither owe or be owed money come tax time. A big return basically means you gave the government an interest free loan.

So? At least you get the money back. It's better than owing taxes.

Even with today's pitiful interest rates, I'd rather have MY MONEY earning interest and owe a couple of hundred to the Government.

You have to pay tax on that interest, you know.

 

[Holdfast]

I just got back from vacation to find an approx. £2000 tax bill waiting for me...

Actually, I knew about it already from when I filed, but it slipped my mind completely. Fortunately a) the accountant reminded me of it before the due date at the end of the month, and b) I got back from my holiday in time to pay it!

 

[SPOCKED]

Thanks to my sociopathic, child abusing, alcoholic ex-wife, it will all be going to my lawyer. And it won't even scratch the surface of his (ever increasing) bill

 

[propita]

Re: What are you going to do with your Tax Refund?

I fucking hate the W-4 form, which basically tells you to pick '1' and doesn't give you any clue you might owe.

It's not just the W-4, it's the whole tax code. It's so complicated and convoluted -- with endless exceptions, loopholes, and whatnot -- that it's almost impossible to have a perfect zero balance at the end of the tax year.

We have our taxes done and, as I posted, Hubby's multiple jobs makes things confusing. Our tax man told us to call in July with our numbers from the paychecks (income and various taxes). He could run the numbers and tell us if we should have them take more so we wouldn't owe, or take less to hit closer to zero net--and that 6 mo was enough time to get it adjusted.

You might try that, if you're shooting to be within +/- $100.

 

[John Picard]

Re: What are you going to do with your Tax Refund?

I fucking hate the W-4 form, which basically tells you to pick '1' and doesn't give you any clue you might owe.

It's not just the W-4, it's the whole tax code. It's so complicated and convoluted -- with endless exceptions, loopholes, and whatnot -- that it's almost impossible to have a perfect zero balance at the end of the tax year.

We have our taxes done and, as I posted, Hubby's multiple jobs makes things confusing. Our tax man told us to call in July with our numbers from the paychecks (income and various taxes). He could run the numbers and tell us if we should have them take more so we wouldn't owe, or take less to hit closer to zero net--and that 6 mo was enough time to get it adjusted.

You might try that, if you're shooting to be within +/- $100.

Exactly. The US Tax Code is modified (meaning more fucked up) every year, so rather than trying to adjust the W4 one time, it's advisable to do so after filing and then around August/September.

I'd rather owe $100 than be refunded $100.

 

[Holdfast]

Thanks to my sociopathic, child abusing, alcoholic ex-wife, it will all be going to my lawyer. And it won't even scratch the surface of his (ever increasing) bill

From the sounds of her, you just need to get the ex to go out on a couple of dates with the lawyer and then he'll hate her enough too, and do your work for free.

On a broader point, I've just come back from a holiday in Mauritius and was chatting to some business people there. They've got a brilliantly simple flat tax system there. Not just direct taxes, but indirect taxes too, so there's no incentive anywhere in the tax code to start shuffling money from capital to income to business to personal, and all the associated shenanigans. 15% flat rate for income tax, sales tax, corporation tax, dividend tax, etc, etc, etc. And a very large personal allowance so even many middle-class earners don't pay any tax at all. They even reduced the flat tax rate from 25% down to that 15% and at the same time removed the vast majority of the deductions, reliefs, exemptions, etc, etc that litter most countries' tax codes.

Wonderfully simple and no incentive to shuffle cash around various financial vehicles to move capital around to reduce tax exposure. Would put most accountants here out of business.

 

[Harvey]

Re: What are you going to do with your Tax Refund?

Probably won't get much back, so I'll most likely save whatever I do get. If there's enough, I've had my eye on the complete score from Star Trek II: The Wrath of Khan.

 

[SmoothieX]

Re: What are you going to do with your Tax Refund?

I fucking hate the W-4 form, which basically tells you to pick '1' and doesn't give you any clue you might owe.

It's not just the W-4, it's the whole tax code. It's so complicated and convoluted -- with endless exceptions, loopholes, and whatnot -- that it's almost impossible to have a perfect zero balance at the end of the tax year.

HR and Payroll are around for a reason. You ask them questions on this (usually this is Payroll you would ask) and they should tell you that claiming 0 will get you money back, claiming 1 you'll most likely owe. Of course, if the person doing Payroll knows anything about Payroll that's how they'd answer this question.

Claiming 0 doesn't guarantee anything. We had to both claim 0 and between the two of us deduct an extra $75/wk to break even.

 

[Stuff]

I'll make payments, I've owed for years and can't seem to get it all taken care of.

 

[Mr. Laser Beam]

Just filed my tax returns last week. Will use the refund to buy tickets. I think you can guess what kind.

Question: How many of you 1) do your taxes yourself, 2) hire an accountant, or 3) use tax preparation services such as Jackson Hewitt or (probably a much better choice) H&R Block?

 

[lightsword]

Re: What are you going to do with your Tax Refund?

I'm going to make payments, I didn't hold out enough state taxes last year so I'm going to owe big time and they will let me make payments..will take years to pay off..

 

[Mr. Laser Beam]

^ Can't you adjust your W-4 allowances or something? There should be some way you can have more withheld.

 

[Hoser]

I'm actually debating on the different netbooks. It's between the Asus eee and the HP mini with the graphics accelerator.

 

[Mr. Laser Beam]

^ Not an iPad?

 

[John Picard]

Just filed my tax returns last week. Will use the refund to buy tickets. I think you can guess what kind.

Question: How many of you 1) do your taxes yourself,

If I filed a 1040-EZ Form, then I would

2) hire an accountant,

This is my current situation because of the mortgage(s), retirement portfolio, and continuing education credits.

or 3) use tax preparation services such as Jackson Hewitt or (probably a much better choice) H&R Block?

Who do you think lobbies the Congress to make tax laws *more* complicated? Also, do you know what kinds of people those places hires and *cough* train *cough*???? Do some Google detective work to see how many times H&R Block has been sued or caught in some kind of wrong doing as well as Jackson-Hewett. How about their grand rip-off scheme called "Refund Anticipation Loans". Boy, did they jack people on those. Have you noticed that the IRS has caught on and is now going to regulate those chain tax preparers?