Paying off school debts and auto expenses from last year. Had a lot done with my car last year and still need to pay it off.
What are you doing with your tax return?
- Thread starter MikeGainer
- Start date
My what now?
It's an Income Tax refund, the "return" is that paperwork you mailed to the IRS earlier.
Remember that your state and/or federal refund is actually an interest free loan you were graciously providing to the government. While there is a minimum percentage of your tax debt that must be paid with salary/wage withholding or quarterly estimated tax payment (It's significantly less than 100%), you are allowed to wait until the filing deadline to pay the last of it. You can even file early and mail your last payment closer to the deadline. While they aren't paying a very high rate, not only will your favorite bank or credit union pay you a little to hold onto that money, you won't be paying your tax preparer a large fee for a refund anticipation loan.
The IRS doesn't mind how many withholding allowances you have on the W4 you filed with your employer as long as they get the minimum percentage of your tax debt from withholding and/or estimated tax payments each quarter. There's even a grandfather provision that allows a smaller minimum if your income for the prior year was lower. Ask your preparer or read the free information you can download from the IRS web site. You can even order hard copies by mail and over the telephone. The URL and phone number are printed on your return's instructions. Publication 17 is particularly informative.
Remember that an extension to file your return is not an extension to the payment deadline. If you later discover that you didn't pay enough you might owe penalties or interest. The IRS leaves the dilemma about how to determine your tax debt without having prepared the return yet to you.
Remember that your state and/or federal refund is actually an interest free loan you were graciously providing to the government. While there is a minimum percentage of your tax debt that must be paid with salary/wage withholding or quarterly estimated tax payment (It's significantly less than 100%), you are allowed to wait until the filing deadline to pay the last of it. You can even file early and mail your last payment closer to the deadline. While they aren't paying a very high rate, not only will your favorite bank or credit union pay you a little to hold onto that money, you won't be paying your tax preparer a large fee for a refund anticipation loan.
The IRS doesn't mind how many withholding allowances you have on the W4 you filed with your employer as long as they get the minimum percentage of your tax debt from withholding and/or estimated tax payments each quarter. There's even a grandfather provision that allows a smaller minimum if your income for the prior year was lower. Ask your preparer or read the free information you can download from the IRS web site. You can even order hard copies by mail and over the telephone. The URL and phone number are printed on your return's instructions. Publication 17 is particularly informative.
Remember that an extension to file your return is not an extension to the payment deadline. If you later discover that you didn't pay enough you might owe penalties or interest. The IRS leaves the dilemma about how to determine your tax debt without having prepared the return yet to you.
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Generally speaking you're quite correct. However, in my case I didn't have enough taxable income to have anything withheld yet am receiving a refund anyway thanks to the wonder that is the Earned Income Credit.
I plan to file it.
On a serious note, I got my refund earlier this week. $1600, though I only kept $1000 because my dad lent me some money. I plan to use it to survive until I can get a paycheck this summer at a job somewhere.
On a serious note, I got my refund earlier this week. $1600, though I only kept $1000 because my dad lent me some money. I plan to use it to survive until I can get a paycheck this summer at a job somewhere.
Last year I spent mine on penny candy and Thai prostitutes. Then I found out that penny candy doesn't cure chlamydia.
Oddly, I consistently get a small (~$50) return from the state, even after local taxes are added in, but generally owe about the same amount on my Federal....
Bully for them. At least I eventually get it back.
Not in my case - my account doesn't earn interest.
I won't be doing that *anyway*. Refund anticipation loans are a fucking ripoff. I can wait till I actually get the refund.
We got over $2000 back, so we put towards the purchase of our new car.
I paid some bills and I paid for a trip to Disneyland which I am taking in a week! YAHOO!
I got a major refund this year, largely because I forgot an item in previous years' returns which could be counted back. Of course, it would have been better to have remembered it at the time, but still, a fat lump sum was greatly appreciated. It's just sitting in the bank at the moment. Probably going to put it towards a deposit on another buy-to-let later in the year.
TheWifeOfBrian
Lieutenant Commander
We ended up spending ours on machines, parts and stuff for his workshop. Anything that keeps him busy and stops him from annoying me while I video-game is good. (y)
