topic Re: Anyone getting a tax refund ? in Community Chat

Anyone getting a tax refund ?

Reever — Sun, 09 Mar 2014 16:25:02 GMT

Suze Orman suggested the refund go into a Roth IRA. But if you have bills, is it best to pay those off first? I was wondering if anyone is getting a tax refund and what do you do with it? Use it as fun money or use it toward the future?

Re: Anyone getting a tax refund ?

gazelle77 — Sun, 09 Mar 2014 16:34:04 GMT

What is a refund?

Re: Anyone getting a tax refund ?

sidsmom — Sun, 09 Mar 2014 16:41:59 GMT

I'm surprised Suze would endorse "refund" thought. My dad used to say he "could invest that money better than the government can". I'm earning interest on that $ all yr long....unfortunately, the piper has to be paid in April. But I understand the "use this practice like a savings acct" thought...use the refund to pay your high-interest bills down.

Re: Anyone getting a tax refund ?

meonlybetter — Sun, 09 Mar 2014 16:47:44 GMT

Nope. Never. Pay in and pay extra all year long and pay in again in April.

Re: Anyone getting a tax refund ?

Desertdi — Sun, 09 Mar 2014 16:57:24 GMT

Are ya kidding? And I have to pay someone to tell me how much I owe........

Re: Anyone getting a tax refund ?

Allegheny — Sun, 09 Mar 2014 17:01:32 GMT

Usually we bank it in savings. This year we banked half and are using other half for expenses on upcoming trip. We don't get a huge refund.

Everyone's circumstances are different. Some investment advisors recommend adjusting your withholdings so there is little to no refund.

However, strictly considering the question, I think Suze's recommendation is sound advice.

Re: Anyone getting a tax refund ?

tucsongal — Sun, 09 Mar 2014 17:03:37 GMT

On 3/9/2014 sidsmom said:
I'm surprised Suze would endorse "refund" thought. My dad used to say he "could invest that money better than the government can". I'm earning interest on that $ all yr long....unfortunately, the piper has to be paid in April. But I understand the "use this practice like a savings acct" thought...use the refund to pay your high-interest bills down.

I think she changed her tune with interest rates, etc being so low.

Re: Anyone getting a tax refund ?

karmakat — Sun, 09 Mar 2014 17:04:31 GMT

My refund is always very small (if any) and just goes to normal expenses.

Re: Anyone getting a tax refund ?

terrier3 — Sun, 09 Mar 2014 17:11:13 GMT

On 3/9/2014 sidsmom said:
I'm surprised Suze would endorse "refund" thought. My dad used to say he "could invest that money better than the government can". I'm earning interest on that $ all yr long....unfortunately, the piper has to be paid in April. But I understand the "use this practice like a savings acct" thought...use the refund to pay your high-interest bills down.

Have you seen interest rates on CDs and savings accounts? Not much.

Any money invested in bonds has been a bust too.

Stocks are a risk as well.

Re: Anyone getting a tax refund ?

scatcat — Sun, 09 Mar 2014 17:16:12 GMT

We usually have to pay quite a bit. This year we are getting a refund. Not too much and am definitely not kicking myself for it not being invested all year. It would have amounted to $4 with the terrible interest rates. Just happy for the refund. We pay the government so much it's sickening.

Re: Anyone getting a tax refund ?

bells4me — Sun, 09 Mar 2014 17:25:31 GMT

Nope, I pay every year as nothing is held out on my pension. This year was good news & I was pleasantly surprised.

Re: Anyone getting a tax refund ?

Daysdee — Sun, 09 Mar 2014 17:30:14 GMT

On 3/9/2014 squeezebox said:

Nope. Never. Pay in and pay extra all year long and pay in again in April.

Ditto. Also our state taxes went up a lot.

Re: Anyone getting a tax refund ?

Reever — Sun, 09 Mar 2014 17:39:41 GMT

Sad that we are being taxed so much but it's the price to pay for living in the greatest country in the world.

Re: Anyone getting a tax refund ?

millieshops — Sun, 09 Mar 2014 17:56:04 GMT

On 3/9/2014 Reever said: Sad that we are being taxed so much but it's the price to pay for living in the greatest country in the world.

And check out the individual tax rates in some of those not so great to live countries. I'm staying here!

Re: Anyone getting a tax refund ?

GCR18 — Sun, 09 Mar 2014 18:07:43 GMT

Suze prefers you don't get a refund, but realizes that may be the only way for some to save. I chose to get a refund. I know it's my money, but it's a nice bonus. I am using it to pay off a bill, buy a new computer and whatever's left will go in the bank.

Re: Anyone getting a tax refund ?

terrier3 — Sun, 09 Mar 2014 18:12:31 GMT

I always get a refund because as a commissioned sales person, my income fluctuates from week to week and month to month.

BIG checks have big deductions...smaller checks have too little deducted.

I would rather not face penalties at the end of the year!

Re: Anyone getting a tax refund ?

151949 — Sun, 09 Mar 2014 18:12:39 GMT

We do not have a high enough income to have to pay income taxes so we plan what we want our refund to be and we pay that much out of our SS check each month , then when we get our refund we put that into a savings account that we use for things like paying our property taxes, and all our insurance biils for the year, and the fee for a season in our campground, and expenses for our trip home to Pa each summer like restaurant meals and hotel rooms and gas.And, yes , we are aware that we could be earning money on that money if it was in the bank all year , but at the low interest rates and due to being required to pay a minimum from our SS it is the simplest way for us to manage our money. I crack up at the skewed logic when people (esp on this BB) complain they would never overpay and let the government use their money all year and in the next breath they complain because they owe taxes each year, and don't get a refund. Do they not realize that you only get a refund if you overpay?

Re: Anyone getting a tax refund ?

terrier3 — Sun, 09 Mar 2014 18:13:44 GMT

On 3/9/2014 Reever said: Sad that we are being taxed so much but it's the price to pay for living in the greatest country in the world.

Our taxes are the lowest they have been since in over 75 years.

Most countries have higher taxes than we do.

Re: Anyone getting a tax refund ?

151949 — Sun, 09 Mar 2014 18:14:44 GMT

On 3/9/2014 Reever said: Sad that we are being taxed so much but it's the price to pay for living in the greatest country in the world.

if you ever lived in some other countries -as I did - you would think the taxes here in the USA are very moderate.

Re: Anyone getting a tax refund ?

Mary Bailey — Sun, 09 Mar 2014 18:20:07 GMT

I always hope & try to plan to get enough to pay taxes on 2 properties.