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Your Take: What Are You Doing With Your Tax Refund?
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Now that we’re a couple weeks removed from tax day, with most folks having received their tax refunds, the most logical Your Take would be – what are you doing with your tax refund? Is it something good and responsible? Or something fun? Or a little of both?
I haven’t gotten a tax refund in a while because when you run a business, you typically make quarterly estimated tax payments which, if you do the math right, net out to zero. Any overpayment or underpayment you apply to estimated payments. It makes for some boring tax day celebrations! That said, when I did get tax returns, I always tried to minimize them by adjusting my withholding and then doing something fun when my math was off.
What did you do with yours? (if you had one!)
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I am on a salary and still try to manage how much I pay tin taxes using the W-4 form. I get very little ( couple of hundred) in tax refund so the money just goes to my savings account.
Paid the life insurance policy premium.
put what little there was straight to student loans
add to new car savings
With a $167.00 refund I paid my monthly long term care insurance premium of $153.48. I bought a 12-pack of beer with the remaining $13.52 to dull the effect of writing a check for the April payment of my quarterly estimated tax to the IRS.
Is your monthly long term care insurance premium to be used for dependent care expenses in the future? How does it work?
That’s to take care of me, hopefully in my home, if I get incapacitated in my elderly years without draining my resources entirely. If you aren’t poor enough for Medicaid yet not wealthy enough to absorb the total cost of long-term care (LTC), you had better have a LTC policy in place. It should be part of a financial plan.
Used mine to finish funding the minor kitchen remodel.
Bank my combined Federal and State $9,000 refund. Yes you read correct $9,000.
Time Value of Money – not so important with such low interest rates.
My wife is self employed and I do not want to do quarterly taxes – thus I make sure MUCH MORE than necessary is taken from my taxes. Claim single even though married and $300 extra state and federal per pay period is taken out.
You need to adjust your W-4. I know that interest rates are low, but even 1.1% on 9K is a $100 bill….
um what tax refund? I ended up owing lol
Went towards installing solar at my house. Short term pain = long term savings on electricity – yay!
We put it all into a Roth IRA!
Was surprised with a return this year; bought a life jacket.
I am retired – I got back all the taxes I paid and i saved it.
If I had a refund, I would have went to Vegas!
I owe, and just enough to avoid penalty, so it looks like the IRS gave me an interest free loan this time. =)
Ours went straight to savings.
Never give the government an interest free loan. You should never be happy at a large refund. Please read my tax tip regarding this topic. http://www.astoriatax.com/The-Best-Refund-is-No-Refund.php
The last step in the annual tax preparation process should be tax planning for the upcoming year. Talk to you tax professional to see how you can adjust your W2 withholding or estimated payments to reach your tax planning goals.