Tax Time!

Yep, it's that time of year. We do our own taxes, and e-filed last Friday. My refund was in the bank this morning.

So some words you might have never thought to see:

Well done, IRS!

 

I filed mine back in Feb.
I also do it myself via TurboTax. Single, no kids, don't home my home, no deductions. Couldn't be any easier.
I got it quick too, bout 10-15 days maybe.

 

What's a refund?

 

I've always wondered if it would be worth it to not pay in throughout the year. I've heard from various "experts" on the TV shows that you shouldn't pay in throughout the year if you can avoid it.
But then again coming up with several thousand dollars in a few months at the beginning of the year might be difficult to some folks.

 

There is usually a legal obligation to pay in with every payroll. You cannot get your employer to stop withholding taxes from your checks. And if you are self-employeed you are usually required to submit quarterly tax statements.

 

The IRS says, "If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax."

 

It is time for a new knife ump

 

That.

Plus given what we are earning on savings right now, we would have made about $0.50 in interest this year on the amount we got back.

 

I have it set up so that I either get back a couple hundred or owe a couple hundred every year. I'd rather have the money as I earn it. That way, I'm not giving out an interest-free loan.

 

My refund was in the bank by the end of January. I e-filed before they were even accepting them, we always get a nice refund so I'm quick to file. Had my money 5 days later.

 

That was my understanding why the "experts" said not to pay in throughout the year. I've never been able to figure it out nor trusted myself to have a couple grand handy the following year.

 

We always over pay and get a hefty return in the spring. I know it makes no economic logic as it does amount to an interest free loan to the government as there is an opportunity cost to not investing it myself, but in reality my high yield investor checking still wouldn't give me that much back on it. If I were diligent enough to not spend the funds, and invest them throughout the year in a way that doesn't give me a short-term cap gains hit when I cash out and need the funds, then I could see withholding the right amount so I would get little or no refund. BUT I know perfectly how irrational and non-diligent I would be in this respect -- so I choose the 'tax bonus' method. It also coincides with a low-income period for our household, so it evens out the pay a bit throughout the year.

k.

 

Makes sense.

 

I have enough going on with life that I don't want to think about my taxes. I do full withholdings and get a return back in the spring. Most of the return gets invested in something. Lately it has been precious metal

 

With wooden handles, right?

 

Not all precious metals have wooden scales. Some have polymer frames and hi capacity magazines.