Comments on: Why I Don’t Want a Big Tax Refund Next Year http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/ Christian Personal Finance - Financial help blog, debt help and other financial resources Tue, 14 Feb 2012 21:22:01 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jean http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-121581 Jean Sun, 10 Jul 2011 01:11:57 +0000 http://christianpf.com/?p=5865#comment-121581 Let it come ,get it add to it and pay off debts .I paid off my car laon this current year that way how about that? Ya Hoo. Let it come ,get it add to it and pay off debts .I paid off my car laon this current year that way how about that? Ya Hoo.

]]> By: Derek @ ChristianCommonCents http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-27186 Derek @ ChristianCommonCents Sat, 27 Mar 2010 17:52:31 +0000 http://christianpf.com/?p=5865#comment-27186 @ThriftyMan While that is true, I wouldn't suggest it for the simple reason that the government is a very tough creditor. You do not want to owe the IRS money for any reason. If something goes wrong you are in way more trouble than if something goes wrong paying off the credit card companies (banks). @ThriftyMan
While that is true, I wouldn’t suggest it for the simple reason that the government is a very tough creditor. You do not want to owe the IRS money for any reason. If something goes wrong you are in way more trouble than if something goes wrong paying off the credit card companies (banks).

]]> By: ThriftyMan http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-27061 ThriftyMan Fri, 26 Mar 2010 23:05:07 +0000 http://christianpf.com/?p=5865#comment-27061 Actually, if you're in debt you can under pay your taxes, and borrow money from the IRS at low rates and buy time to pay high-interest credit card debt while repaying the IRS. File a Form 9465 along with your tax form to request an installment payment plan. You can set your own terms and approval us generally automatic. You’ll be charged a setup fee of $105 ($52 if you agree to automatic withdrawls from your bank account) and will be charged a low interest rate (currently .583% per month or about 7.25% per year). With careful planning, this can be an effective strategy that will meet your tax obligations and free up cash to make progress on your credit card debt. Actually, if you’re in debt you can under pay your taxes, and borrow money from the IRS at low rates and buy time to pay high-interest credit card debt while repaying the IRS. File a Form 9465 along with your tax form to request an installment payment plan. You can set your own terms and approval us generally automatic. You’ll be charged a setup fee of $105 ($52 if you agree to automatic withdrawls from your bank account) and will be charged a low interest rate (currently .583% per month or about 7.25% per year). With careful planning, this can be an effective strategy that will meet your tax obligations and free up cash to make progress on your credit card debt.

]]> By: Eneida http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-26742 Eneida Thu, 25 Mar 2010 18:39:13 +0000 http://christianpf.com/?p=5865#comment-26742 Absolutely against! Why give it to the government? Sometimes people say to me that they wouldn't have the discipline to save it...then have the amount you were paying in taxes from your check (if you have direct deposit) go automatically into another account. You won't even see it hit your regular bank account and you can be the one in control of that cash if an emergency were to hit. Just talk to your HR department to have that set up! Absolutely against! Why give it to the government? Sometimes people say to me that they wouldn’t have the discipline to save it…then have the amount you were paying in taxes from your check (if you have direct deposit) go automatically into another account. You won’t even see it hit your regular bank account and you can be the one in control of that cash if an emergency were to hit. Just talk to your HR department to have that set up!

]]> By: Derek @ ChristianCommonCents http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-26501 Derek @ ChristianCommonCents Wed, 24 Mar 2010 02:09:12 +0000 http://christianpf.com/?p=5865#comment-26501 @Randy With a variable income it is very difficult. Generally if someone gets a similar refund each year they can change their withholding accordingly. With a variable income you would probably have to either go with an average of your past few years or just go ahead and give the government extra some money. It isn't the end of the world, and it is probably better than having to pay a huge bill at the end of the year. @Randy

With a variable income it is very difficult. Generally if someone gets a similar refund each year they can change their withholding accordingly. With a variable income you would probably have to either go with an average of your past few years or just go ahead and give the government extra some money. It isn’t the end of the world, and it is probably better than having to pay a huge bill at the end of the year.

]]> By: Randy http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-26500 Randy Wed, 24 Mar 2010 01:52:24 +0000 http://christianpf.com/?p=5865#comment-26500 The option to receive your refund as a savings bond is available this year, there has been no talk that I have seen of mandating this (although some conspiracy minded folks will say otherwise). I'll get back a healthy refund this year, but my pay is variable and in a different year I would just about break even. I certainly could have used the cash all along, but short of doing my taxes quarterly, how can I estimate a W-4 so that I don't get a large refund? The option to receive your refund as a savings bond is available this year, there has been no talk that I have seen of mandating this (although some conspiracy minded folks will say otherwise).

I’ll get back a healthy refund this year, but my pay is variable and in a different year I would just about break even. I certainly could have used the cash all along, but short of doing my taxes quarterly, how can I estimate a W-4 so that I don’t get a large refund?

]]> By: Derek @ ChristianCommonCents http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-26237 Derek @ ChristianCommonCents Mon, 22 Mar 2010 15:26:22 +0000 http://christianpf.com/?p=5865#comment-26237 @Lara I agree that interest rates are mostly negligible right now, but as Julie points out for people that have 20+% credit card debt they could be paying it is a big difference. Alternately, if you are out of debt you could invest it and not just put it in a savings account. Being in a separate savings account is still preferable to giving it to the government as you have it in case of emergency. One thing that Dave Ramsey suggests is putting it into an account that is hard to access. For example, one of my savings accounts won't let me take money out online. I have to actually go to the bank to get at it. This is perfect for those types of people who just think they will spend anything they have. Have it automatically put in an account that you can't easily touch and it is very similar to giving it to the gov't. Except you still have it if you really do need it. @Lara
I agree that interest rates are mostly negligible right now, but as Julie points out for people that have 20+% credit card debt they could be paying it is a big difference. Alternately, if you are out of debt you could invest it and not just put it in a savings account.

Being in a separate savings account is still preferable to giving it to the government as you have it in case of emergency. One thing that Dave Ramsey suggests is putting it into an account that is hard to access. For example, one of my savings accounts won’t let me take money out online. I have to actually go to the bank to get at it. This is perfect for those types of people who just think they will spend anything they have. Have it automatically put in an account that you can’t easily touch and it is very similar to giving it to the gov’t. Except you still have it if you really do need it.

]]> By: Julie http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-26222 Julie Mon, 22 Mar 2010 14:25:06 +0000 http://christianpf.com/?p=5865#comment-26222 One thing is for sure, the interest I pay for not using that tax money to pay down debt does make a difference. If I'd put $300/month against my debt last year instead of overpaying the government by $3600, I've have saved a lot in reduced interest to credit card companies. Of course, this is the new view we have since we decided to "live like no one else"... :-) One thing is for sure, the interest I pay for not using that tax money to pay down debt does make a difference. If I’d put $300/month against my debt last year instead of overpaying the government by $3600, I’ve have saved a lot in reduced interest to credit card companies. Of course, this is the new view we have since we decided to “live like no one else”… :-)

]]> By: Lara http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-26002 Lara Sun, 21 Mar 2010 11:12:32 +0000 http://christianpf.com/?p=5865#comment-26002 There are people out there who just can't keep money in their possession - if they have it, they spend it. For those folks, I don't think it's a bad idea to overpay taxes as it's a weird type of savings plan for them. As for the interest lost overpaying taxes as opposed to putting the money in savings, savings rates are so low right now that it makes precious little difference. There are people out there who just can’t keep money in their possession – if they have it, they spend it. For those folks, I don’t think it’s a bad idea to overpay taxes as it’s a weird type of savings plan for them. As for the interest lost overpaying taxes as opposed to putting the money in savings, savings rates are so low right now that it makes precious little difference.

]]> By: Derek @ ChristianCommonCents http://christianpf.com/why-i-dont-want-a-big-tax-refund-next-year/comment-page-1/#comment-25864 Derek @ ChristianCommonCents Sat, 20 Mar 2010 15:49:53 +0000 http://christianpf.com/?p=5865#comment-25864 Thanks for all the great comments. I meant to mention the possibility of getting savings bonds as a refund in future. Definitely not the route I want to take. The more I think about it the more I want to have a tax bill of zero. The extra money each month is a nice bonus too :-) Thanks for all the great comments. I meant to mention the possibility of getting savings bonds as a refund in future. Definitely not the route I want to take. The more I think about it the more I want to have a tax bill of zero. The extra money each month is a nice bonus too :-)

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