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Neo

What do you typically do with your tax refund?

What do you typically do with your tax refund?   23 members have voted

  1. 1. What do you typically do with your tax refund?

    • Invest it in a long-term savings plan (401k, IRA, etc.)
      0
    • Invest it in a short-term savings plan (money market, savings account, etc.)
      7
    • Pay off any current debt (credit cards, car loans, etc.)
      9
    • Spend it on new products (TV, computer, etc.)
      1
    • Typically do not get a tax refund
      6

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22 posts in this topic

If you're like me then you like to get a nice check from the government each year. Some may say that it is better to have it added to each paycheck so that you're not giving your money to the government for one year interest free, but I don't see it that way at all. Yes the government is getting money interest free but in return I know that I can't touch that money until I get a once-per-year check from them. If I had gotten it throughout the year I would be more likely to not notice that money and would be spending it on worthless goods.

My wife and I typically receive a nice refund that we put to good use. This year it will likely be towards the down payment on a new car for her since she is in need of one. Last year we used it to build a deck to the back of our home and some other additions/refreshes on our newly purchased home. I see a refund check as an investment and each year we try to put most or all of it towards something that will enhance the value of our property, relieve us from a little debt or go towards our retirement.

What do you typically spend your tax refund on or what are you planning on spending it on this year?

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I try to set my taxes up so that I owe the government the maximum without getting a penalty. I don't want them using my money and not paying interest. I use IRA contributions to take my income lower to avoid any penalties. It 'forces' me to save a little more and the gov doesn't get to use my money for free. plus, I make pretty good interest on it.

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I just put it in the bank and use it as needed- the same as I do with all of my income. I don't really have any big bills besides my mortgage.

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Never gotten one - hope I will this year. I never had to file until last year, and didn't pay any last year, either.

Ahh, I miss working with illegals for cash under the table...

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Never gotten one - hope I will this year. I never had to file until last year, and didn't pay any last year, either.

Ahh, I miss working with illegals for cash under the table...

I certainly wouldn't speak too loudly considering the government requires that you file regardless if it gets taken out upfront or not.

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No refund for me this year... ended up owing $552 ($572 refund the previous year).

When I do get refunds, I generally put it in savings.

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Mine is just added to my checking account and hardly noticed. At this point I would be better served by changing my deduction and this post may be the impetus to do just that.

It's sad how many people are taken advantage of by predatory lenders who give advance payments at very high interest rates on returns to desperate people that end up losing huge chunks of their hard earned money. Some reform in the laws governing this type of financial activity is needed.

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Predatory lenders exist because we have a culture of instant gratification where it is perfectly acceptable to go into debt for the most trivial of needs. 30 years ago it was almost impossible to get credit except from a bank, S&L or credit union where much better standards were maintained.

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Predatory lenders exist because we have a culture of instant gratification where it is perfectly acceptable to go into debt for the most trivial of needs. 30 years ago it was almost impossible to get credit except from a bank, S&L or credit union where much better standards were maintained.

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i believe it's better to pay very little or get back very little. that way i'm able to make the most interest on that money as possible. while i see neo's point of having a guaranteed check at the end of the year, i'd rather be able to use that money over the course of the year.

my fiancee, while in grad school, didn't make enough money to have to owe anything so she got it all back. it was a nice chunk of change and we're using that for our honeymoon.

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I usually end up paying out every year.

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I switched to an accountant this year instead of doing it myself and boy did it ever pay off. I put my money in the bank where it will stay although I might have my deck rebuild and employ a local contractor to give them some business. Maybe that's how I'll spend my economic stimulus check.

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I generally try to get as close to 0 as possible, but usually end up with a small refund after deductions. I put that into savings or use it to pay off debt.

I'd much rather NOT have anything withheld, put the money in savings all year and then write the goverment a check at tax time, keeping the interest for myself.

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I generally try to get as close to 0 as possible, but usually end up with a small refund after deductions. I put that into savings or use it to pay off debt.

I'd much rather NOT have anything withheld, put the money in savings all year and then write the goverment a check at tax time, keeping the interest for myself.

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Unfortunately we had to pay (for the first time) the government this year and they didn't go easy on us at that. Even with an accountant doing our taxes for us (ours is a bit more complicated than most so it is easier to have someone who knows what they're doing filling the forms out!) we had to pay out the wazoo.

I am planning to use the stimulus check as part of a down payment on a new car for my wife though (looking hard at the Honda Civic diesels that are supposedly coming out for the 2009 model year). We were going to use the money we got back from regular taxes for this but since that isn't happening any more it is plan b. :)

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Well, got the tax return back. Spent it on a broken water heater (for a friend) and registering another scooter. Tax return down the drain. Now waiting for that stimulus check to fix other problems.

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i'm annoyed. the website said mine was supposed to be direct deposited (which is how i got my return) on the 9th. i never got it. i was planning on using it to buy tickets to the newport folk festival. i might just put those on a credit card and use the stimulus check towards the credit card. :)

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Not surprised this happened, the IRS screwed up and 15,000 stimulus checks were sent to the wrong people according to ABC News.

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Not surprised this happened, the IRS screwed up and 15,000 stimulus checks were sent to the wrong people according to ABC News.

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