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Tax Refund?

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Thump;745353; said:
No shit, time to change the withholdings.
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Not a slap on Buckin A - But, absolutely the first thing that has to drilled into newcomers into the workforce - do not believe the BS from HR about withholding and allowances.

Get a copy of the tax tables, get a copy of your tax form and run a dummy. (Better yet, run it out of TurboTax). See what you should pay, then write that W-4 correctly.
 
Upvote 0
sandgk;745362; said:
Not a slap on Buckin A - But, absolutely the first thing that has to drilled into newcomers into the workforce - do not believe the BS from HR about withholding and allowances.

Get a copy of the tax tables, get a copy of your tax form and run a dummy. (Better yet, run it out of TurboTax). See what you should pay, then write that W-4 correctly.
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Well, I'm not too good with the money. I prefer to let uncle sam hold on to it. If I get my hands on it, it's spent.
 
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craigblitz;745261; said:
I personally like getting a return. I agree with golf and TheWood that why lend the government for free and you could be investing the extra each month etc. I am not sure if the extra money I get back every month would be saved or not and getting a couple K back every year I place right into my savings or other investments.
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Do this if you can.

Take 1/2 your refund from 06. Buy a 12 month CD (you can get 5.25 percent at a number of banks now) or some other security with a 12 month holding period.

Adjust your withholdings so that you owe about that much in a year.

Now take the extra $$$ in your paycheck(from the adjusted withholdings) and have it direct deposited into a credit union or some other account that you can't easily access.

Whe tax time comes next year. Take the amount you owe from the CD and other account and pay it.

Repeat every year.

To run some basic numbers, if you are holding $1,000.00 in a 5% account on a constant basis over 10 years you end up about $500 ahead. Not a lot, but hey it doesn't hurt.
 
Upvote 0
sandgk;745362; said:
Not a slap on Buckin A - But, absolutely the first thing that has to drilled into newcomers into the workforce - do not believe the BS from HR about withholding and allowances.

Get a copy of the tax tables, get a copy of your tax form and run a dummy. (Better yet, run it out of TurboTax). See what you should pay, then write that W-4 correctly.
Click to expand...

Heck do yourself a better favor. Find a tax professional. (Not the H&R block kind, but a CPA or CFP)

If you have that much extra being withheld you should be able to put that money to much better use. (Roth IRAs, Securities, Real Estate, etc....)
 
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strohs;434510; said:
Who else is getting a tax refund this year?
What will you be speding it on?
I know where mine is going, new irons.
Probably the Titleist 735.cm's, cant wait! :)
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I try to owe the maximum amount I can without penalty. My "refund" is the money I've been able to use interest free all year. Drives the wifey nuts though....she thinks it's "additional" tax.
 
Upvote 0
Buckeye Buh Nim;745404; said:
Do this if you can.

Take 1/2 your refund from 06. Buy a 12 month CD (you can get 5.25 percent at a number of banks now) or some other security with a 12 month holding period.

Adjust your withholdings so that you owe about that much in a year.

Now take the extra $$$ in your paycheck(from the adjusted withholdings) and have it direct deposited into a credit union or some other account that you can't easily access.

Whe tax time comes next year. Take the amount you owe from the CD and other account and pay it.

Repeat every year.

To run some basic numbers, if you are holding $1,000.00 in a 5% account on a constant basis over 10 years you end up about $500 ahead. Not a lot, but hey it doesn't hurt.
Click to expand...

Better yet, put 4K into a Roth IRA.
 
Upvote 0
JoJaBuckeye;745642; said:
I try to owe the maximum amount I can without penalty. My "refund" is the money I've been able to use interest free all year. Drives the wifey nuts though....she thinks it's "additional" tax.
Click to expand...

Yeah, they don't understand how the tax system works.
 
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