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Additional Details
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Dagger_SA | Why do people get excited over large tax refunds? |
Do people not realize when you get a large tax refund, that means you've been lending money to the government interest free and you could have had that money as an increase to your monthly income?
If you have debt, and you're paying interest on it, why wouldn't you want an extra $100/month vs. $1200 at the end of the year -- which you've been lending interest free?
Pay attention to your taxes, people. Max out your W-4 exemptions and forecast how much tax you will owe buy using the Form 1040ES which you can get at irs.gov.
But if you like making interest free loans, please send your money to me every month and I'll be happy to give it all back to you next February.
Additional Details
OK - I get that some people get tax credits, but I'm referring specifically to those who simply over-withhold. |
 |
 
OFFICER SEXY PEACH
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"AMEN TO THAT BROTHER,I AGREE" BUT I GUESS THEY RATHER A BIG LUMP SUM,OR THEY BAD AT SAVING MONEY.
i TELL THEM THAT ALL THE TIME ON HERE,WHEN THEY ASK HOW THEY CAN GET A BIG REFUND BACK WHEN THEY FILE TAXES,JUST CRAZY,WHEN THEY CAN EARN INTEREST ON THAT MONEY BY PUTTING IT IN A SAVINGS ACCOUNT THAT PAYS INTEREST,THE IRS SURE DOESN'T. |
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cdkincade
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i like the big money in feburary because that is like saving up for vacation money without actually doing it. other people may be the same way.if i got the money throughout the year i would spend it i am not good at saving money.lol |
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ladytexasrbl2002
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Well you failed to consider the people who get many tax credits. Many people are getting first time homebuyer credits, and/or have children!
My husband works and I am a full-time housewife, so we live off his income. His W4 is set to where he pays NO taxes, and we still get at least $4,000 back each year from income taxes, because we have four children.
Just my opinion. I like to see the most money in each paycheck, but having a larger check once a year helps, especially with this GREAT economy we have right now. |
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Sirena
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lol..good point. Never heard it put like that before but its kinda true |
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xtraheavy01
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Dagger,
What you say is very logical. But, being a tax preparer for a long time, I can tell you that people like the big check. People are not good at saving money. They feel like they are willing to give up interest just so they have money come tax time.
Think about it, mot people have credit card debt out there of at least $8,000.
Now that the economy is in the toilet, people are making less money, working more hours , spending more money and getting less food.
Its not a pretty sight. |
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1701
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I agree w/ your stmts completely but my answer is simply...
...people like getting money. |
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fargoblizzards
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Definitely about the credits, supporting my son and caring for him sure doesn't earn me any interest in any savings account but the dependent credit is a nice gift at the end of the year. kind of a good job thing i suppose. As far as taxes from wages yes you're very right. Then again if there were no taxes I don't think the government would be standing, we tend to carry it. |
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Douglas
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I have zero debt..except my mortgage and this year I am getting over $10k refunded. My wife and I are ecstatic because for the last 8 years we've paid $4-5k a year.
While I don't like the idea of a big refund normally, I look at this year as an exception. We increased our withholdings again in the hopes of closing the gap of years past but we didn't factor in the additional dependent (new baby) and our income decreased slightly putting us in a lower tax bracket. Also, we realized some significant capital losses.
Hopefully next year we'll bring it close to zero but we're thrilled. Plus, if I had that money all throughout this year I would have invested it or spent it. Now in this economy I will just save it. |
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Bill D
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I like refunds because i can use the money to buy some goodies and/or pay bills.
Since they do use a lot of it wisely, in my eyes, I don't mind lending the government money, because without money, having a government would be difficult. And just by learning from history, I'd prefer not to have an anarchy.
So, I guess i'd rather have a lump sum and a more stable country than having those same dollars evenly spread out in my paychecks. To each his own though. |
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