Community Chat

[CalminHeart]

---

@Goodie2shoes wrote:

Some may remember my post on 2/12 noting I had just  completed and filed my Tax returns.  Well !! I just signed into my checking acct and to my surprise here on 2/15 my state refund has been deposited !! I don't recall ever getting any refund that quick !  Happy girl again !! 

---

I received my federal refund on day 5. I figured I should file my taxes before politics cleans out everything at the IRS and there are huge delays.

[CalminHeart]

---

@shelbyshelbyshelby wrote:

Good for you . I just read that the IRS will be having employee cuts . They are still getting over the Covid Tax Returns duration  . We do not live in a perfect world .

So whats next for all of us ?

---

What's next?  As things are today, the oligarchy will get richer and the rest of us will get poorer,. We will pay higher prices, have trouble finding many products, and struggle with more price gouging than we already are.

[Laura14]

I filed my state and federal taxes on Sunday night two weeks ago.

I had my federal tax refund the next Monday exactly one week later. 

I owed the State of GA and they took the money out of my account with 24 hours.  My governor wants his cut! I see no benefit to this new flat tax we have here.

For reference, I take the standard deductions so nothing complicated and I had to open a traditional IRA to get my money back on the federal side.

I am over being penalized for making good interest on my savings.    

[THEY CallMe Mr Wilkes]

My CD rates were so good in 2024 that I made estimated payments over the year to account for the tax liability. 

That sure won't happen the same way in 2025.  The drop in interest rates is disappointing to we the savers.

[Puzzle Piece]

@THEY CallMe Mr Wilkes  So what will be your strategy to stay afloat?

[Laura14]

@Puzzle Piece If you haven't got one already, find an online bank that compounds interest daily. I use Ally.

And there are still some solid short term CD rates. Just not the 5% of last year. 

For tax savings, if you haven't got a traditional IRA and qualify under the income and 401K limits, you can open one between now and April tax deadline and throw up to $8000 if you are over 50 for last year. And then up to another $8000 for this year. I think it's $7000 for the under 50 crowd.

The caveat to that is when you withdraw that money, you will pay taxes on it then since you're getting a credit now so something to think about if you plan to be in a higher tax bracker later on when you touch it. And you're not supposed to touch until 59 1/2 years old and I believe 5 years since opening the account to avoid any penalties. 

I plan to be living in a cardboard box under a bridge when I have to take it at 75 according to my birthdate so I'm taking my credit now. 

[JoyFilled Warrior]

---

@Laura14 wrote:

@Puzzle Piece If you haven't got one already, find an online bank that compounds interest daily. I use Ally.

And there are still some solid short term CD rates. Just not the 5% of last year. 

For tax savings, if you haven't got a traditional IRA and qualify under the income and 401K limits, you can open one between now and April tax deadline and throw up to $8000 if you are over 50 for last year. And then up to another $8000 for this year. I think it's $7000 for the under 50 crowd.

The caveat to that is when you withdraw that money, you will pay taxes on it then since you're getting a credit now so something to think about if you plan to be in a higher tax bracker later on when you touch it. And you're not supposed to touch until 59 1/2 years old and I believe 5 years since opening the account to avoid any penalties. 

I plan to be living in a cardboard box under a bridge when I have to take it at 75 according to my birthdate so I'm taking my credit now. 

---

~~~~~~~~~~~~

Hi @Laura14 

WOW, You impress me!   

Thanks for sharing your sage advice & instructions! 

[Laura14]

@JoyFilled Warrior You're welcome. I paid back every penny for that student loan and my Finance degree. It should do me and everyone else some good at this point. 

ETA: I am NOT a financial planner or tax accountant. This is just basic, general, good advice. Obviously, everyone here has their own finances and personal situations. Please seek someone certified to help which is NOT me.