View Full Version : Income Tax Refund Splurges?
Am getting a nice refund from fed and state, so I decided to get a few things at Costco: a new vacuum cleaner, a stainless steel electric kettle, and a new outdoor floor mat for the garage entryway. And couldn't resist the jar of unsalted cashews.
Even with living simply, I feel like a refund should include some things you want/need and not just stashed away to add to savings. Gotta live a little. Anyone else?
Am getting a nice refund from fed and state, so I decided to get a few things at Costco: a new vacuum cleaner, a stainless steel electric kettle, and a new outdoor floor mat for the garage entryway. And couldn't resist the jar of unsalted cashews.
Even with living simply, I feel like a refund should include some things you want/need and not just stashed away to add to savings. Gotta live a little. Anyone else?
I will probably get myself some Indian food and put whatever is left in my savings. Maybe get a tattoo. But that is a big maybe.
I dream of getting a refund again. We have had to pay an increasingly higher amount every year. But if I got one, I think I would put it in the fun envelope which we use for getaways.
I completed our income tax return this past weekend, hoping to get it over with to see how much additional it would cost me. I was pleasantly surprised to see that for the first time in years we were entitled to a small refund, just enough to mostly pay for a new Microsoft Surface Pro. It arrives tomorrow.
Williamsmith
3-3-16, 9:24pm
Well, since that money is yours anyway, and not a refund......it's like a savings account with no interest. Me......I'm going to take that $169 minus my income tax preparation fee of $165.......think I'll splurge and get something at Dollar General.
Well, since I owe $1000 to the feds and am getting back $100 from the state I guess I'll have to do a negative splurge. I'm torn between not eating for the month of April or not paying part of my rent...
Whoopee--I'm splurging on property taxes!:(
ApatheticNoMore
3-3-16, 9:37pm
I guess I'll splurge in taking out of savings to pay my taxes.
My refund usually goes to my Fun Fund, the little treats for myself (plays, movies, clothes) that my usual income doesn't cover. But now that I haven't been working much because of my injury, it may go to regular expenses.
Years ago my refund would cover a week long trip to London. Those days are long gone--too expensive now.
Simplemind
3-4-16, 12:30am
What is a refund ???
ToomuchStuff
3-4-16, 2:12am
I will agree, that it really isn't a refund, but a interest free loan. I do wish there was a way to zero it out before the end of the year, so I neither paid, nor got a refund. This year I owed the state (happens occasionally, OT screws things up), and I got back a smaller refund from federal, however that refund goes right back into the tax fund, as it pays a good chunk of the property taxes for me.
Even though I have friends and family that work for them, that organization can kiss my :moon:.
Williamsmith
3-4-16, 5:46am
It is the one thing I like about Ted Cruz. He consistently calls for the abolishment of the IRS. I could live with that. A straight 10% flat tax would be a slight reduction for me.
I guess I'll splurge in taking out of savings to pay my taxes.
Same here. After having our refund stolen a couple of years ago, I adjusted my withholding to decrease our refund, and apparently went too far in the other direction. So we owe $1100, but the good news is that nobody can steal our refund, and I did direct the extra cash flow to savings, so we have the money to pay.
Years ago we would often use our refund towards a summer vacation. One year we had enough for a short vacation and new furniture (drastically discounted at the Sidewalk Sale). We would rather owe a small amount (which is what happened this year), or only get a small refund. There is so much refund fraud these days, as rosarugosa experienced, I'd just as soon owe some.
If I get a refund, I've done something wrong in my planning.
iris lilies
3-4-16, 11:50am
If I get a refund, I've done something wrong in my planning.
I wasnt going to bring that up, killjoy.:~)
iris lilies
3-4-16, 11:54am
It is the one thing I like about Ted Cruz. He consistently calls for the abolishment of the IRS. I could live with that. A straight 10% flat tax would be a slight reduction for me.
Not that I think the income tax industry would ever go away, but Yes I like the idea of a flat tax, too. Rand Paul's number was 14%.
I guess Cruz' flat tax plan is the one Roger is refering to as "ridiculous."
Funny, I find a flat tax justifiable n many ways, and sensible.
What is a refund ???
+1
Although I KNOW I put in enough to cover my estimated taxes, so hopefully the overage (if any) will just go towards a prior year deficit.
I got a much larger fed refund than expected (actually I expected to owe) and I'm paying down one debt and gave myself a little to go freshen up my spring wardrobe (got rid of some tired items) and my husband will get a little to put towards...yes, another wood flute. We owed on state so that will also be paid as well as the accountant's fee. He was nice enough to fit ours in early due to needing numbers for FASFA deadlines so we're done, money in the bank, checks ready to send off to state closer to April 15 deadline.
Gardenarian
3-4-16, 3:16pm
We haven't even filed yet. You folks are really on the ball!
I have no idea what our taxes will be like. Last year we sold our cabin, which was a vacation rental, and also our primary residence - which was also my husband's place of work. Very confusing. And then, we are in a new state, and I'm getting my pension as well as my (rather meager) salary.
I'm so grateful that I can just pay someone to do my taxes. It is exactly the kind of work I detest.
We haven't even filed yet. You folks are really on the ball!
I have no idea what our taxes will be like. Last year we sold our cabin, which was a vacation rental, and also our primary residence - which was also my husband's place of work. Very confusing. And then, we are in a new state, and I'm getting my pension as well as my (rather meager) salary.
I'm so grateful that I can just pay someone to do my taxes. It is exactly the kind of work I detest.
We just sent everything to our accountant this past weekend, so we don't know yet if we get a refund or a bill. Last year we got a big refund so we adjusted DW's withholding. But I've also started collecting a small pension from which nothing is taken out. We'll find out soon enough, I guess.
Maybe someday when things slow down financially we'll go back to doing our own taxes. By the logic in another recent thread, the (relative) few minutes of doing taxes ought not be something people want to pay for, the same way some feel paying to pick up dog poop is a waste of money. In fact, over the course of a year it probably takes less time (as a percentage) to do taxes than it does to pick up poop. And yet so many of us farm out the task...
I will be getting a bonus from work next week, and I think there will be enough for a couple of splurges in addition to repaying our savings account for what I withdrew to pay the IRS. :)
Maybe someday when things slow down financially we'll go back to doing our own taxes. By the logic in another recent thread, the (relative) few minutes of doing taxes ought not be something people want to pay for, the same way some feel paying to pick up dog poop is a waste of money. In fact, over the course of a year it probably takes less time (as a percentage) to do taxes than it does to pick up poop. And yet so many of us farm out the task...
Haha, I don't pay for either poop pick-up OR tax prep!
Maybe I should go to an accountant, but I really don't think I'd do any better. My deductions are straightforward and God knows I don't have any savings accounts with tricky tax benefits except for my teeny IRA.
I am thinking about making a checking account just to pay student loans out of. I am not sure what my refund may be, I can't claim my son anymore I think? I may get a tax preparer this time. Not feeling totally confident on my own this year, or just like I don't have the mental energy for it with my work load.
Haha, I don't pay for either poop pick-up OR tax prep!
Maybe I should go to an accountant, but I really don't think I'd do any better. My deductions are straightforward and God knows I don't have any savings accounts with tricky tax benefits except for my teeny IRA.
I went to an accountant exactly once. They missed a number of things (that I had pointed out to them), and I had to re-do it at the last minute. My situation is straightforward, and I'm happy (maybe that's an overstatement...) to do it myself. I should get it done this weekend.
Gardenarian
3-5-16, 4:54pm
In fact, over the course of a year it probably takes less time (as a percentage) to do taxes than it does to pick up poop. And yet so many of us farm out the task...
It's not so much the time as the expertise. When we started using a tax accountant we saved a TON of money.
Well, yes, I suppose I could study up and figure these things out myself, but I don't WANT to. I don't mind poop collecting, and there was virtually no learning curve :)
You know, simple living.
Gardenarian
3-5-16, 4:55pm
I am thinking about making a checking account just to pay student loans out of. I am not sure what my refund may be, I can't claim my son anymore I think? I may get a tax preparer this time. Not feeling totally confident on my own this year, or just like I don't have the mental energy for it with my work load.
Your library should be able to refer you to a free tax preparation service.
Our library system had experienced tax preparers on the premises throughout the first quarter, just waiting to help. And every IRS document you could ever want.
Teacher Terry
3-5-16, 5:19pm
My husband does ours except for a few years when we sold a bunch of property and it got complicated. Then we hired a CPA but it cost about 1500. Ouch! If it was just me I would hire it done but would go to a cheap tax place.
ApatheticNoMore
3-5-16, 5:38pm
It's not so much the time as the expertise. When we started using a tax accountant we saved a TON of money.
I wonder what kind of $1000 a return tax accountant you have to find to save you money, I figure you need to be paying about that much or more to get anyone that has real expertise, you need to get the accountants the 1% are using, and they are probably paying that or more. Tax accountants have never saved me a single penny and I've used them, but I've paid up to $500 for tax preparation (mostly due to it being prior years taxes though, so more expensive).
It's not so much the time as the expertise. When we started using a tax accountant we saved a TON of money.
Interestingly, I'm in a huge bind now after having had a CPA do my taxes. My tax liability was double the years he did it for me. Granted, it was a couple of complex years, with my MIL moving next door, and still owning a home, and me being financially in it, etc. which is why I went to him. I don't blame him, but once I got rid of the house, I went back to doing it on my own. I feel like I'm better off. I truly don't think he did me any favors. And I'm 98% sure I could withstand an audit. I'm pretty scrupulous.
I wonder what kind of $1000 a return tax accountant you have to find to save you money, I figure you need to be paying about that much or more to get anyone that has real expertise, you need to get the accountants the 1% are using, and they are probably paying that or more. Tax accountants have never saved me a single penny and I've used them, but I've paid up to $500 for tax preparation (mostly due to it being prior years taxes though, so more expensive).
I used tax software for years for my own taxes and my mom's. The year DW and I married, though, we had the whole changed-marital-status thing, the short sale of property, my rental property, figuring out what to do with various 401(k)s and 503(c)s and 123(abc)s, and some residential energy credit stuff going on. With the tax software I always found one field that either did not compute correctly or would not let me put the correct value in it, and I wasted a lot of time trying to figure it out. Sometimes I even just used the software for the tax forms, not a frugal move considering I could have copied them for 10 cents apiece at the local library or printed them out at home. So we went with an accountant.
Fast forward a couple of years and I left my Dilbert job, started my own business, we were still dealing with the rental property and the short, and the accountant once again made something usable out of a pile of spaghetti. From my experience with the tax software, I think it's unlikely I would have done the depreciation and carry-forwards properly. Plus, becoming your own tax expert is kind of like deciding to be your own car mechanic. Sure, it can be done, but by the time you've made the investment in learning it all for the once a year you use it, is it worth it? So far, it hasn't been worth it to me to go back to DIY. One of those simple things that may not be hugely frugal but makes my life better.
In your situation, Steve, you definitely were right to go with the accountant. Depreciation just makes my head spin.
As a freelancer and sole proprietor, though, I think I've fully grasped the simple deductions that I can take, and my assets are pretty basic.
The money I spend on turbotax is definitely worth it to me. This year it took me about 2 hours to complete them. It was the first year I had to include various assets I had inherited from my father. (He died in 2014 but my sister didn't distribute them until partway into 2015). Turbotax uploaded the tax document from e*trade and I ended up having a few things I'd never dealt with before including several investments that spin out royalties, but the software handled it easily. I'm sure I could have figured it out on my own, but the $69 I spent on turbotax was worth it to maintain my sanity and not spend an entire saturday figuring out my taxes. The final document turbotax produced for both federal and state was 28 pages including Schedules A, B and E and the HSA form 8889.
I've never regretted using a CPA. Some years my taxes get a little complicated and others are straight forward, but I've been using the same person for years and he knows a little bit about my financial situation. On top of saving some money with his tax tips I usually get good advice on investing, when to take SS, how to pan IRA/401K withdrawals, etc., and how they can help with future taxes. The past few years I've not had much help with tax savings tips, but have gotten my money's worth in advice. Plus I save time on something I really do not like doing and have confidence things are done correctly.
edited to ad: My annual bill about $300. and has included some relatively simple estate issues, the buying and selling of stocks, and a few other special items, but has never been hugely complicated. It includes a sit down discussion of about a half hour or hour for Q+A and advise.
iris lilies
3-6-16, 12:54pm
My husband does ours except for a few years when we sold a bunch of property and it got complicated. Then we hired a CPA but it cost about 1500. Ouch! If it was just me I would hire it done but would go to a cheap tax place.
Ours are done by a firm owned by a tax attorney and CPA. The cost is incredibly reasonable, under $500. And that amount is deductible. I always sing their praises because they have been doing our taxes for decades. Ours can be complex with rental,p property we don't rent out, DH's busness, etc.
mschrisgo2
3-22-16, 1:21am
Just did my taxes and I am pleasantly surprised to see I'm getting a small refund from the feds and a larger refund from the state (CA). First year in a long time that I haven't had to pay more. I can start rebuilding the emergency fund I had to tap when I was off work with broken wrist. Nice!
We will borrow from savings or Home Equity loan to contribute to both our IRA deductions, so we will probably use what we get back to pay those places back.
iris lilies
3-22-16, 1:13pm
We are getting a refund of a couple thousand this year. This came about because our income is in transition, moving from full employment to full retirement. It will take another year or so to get our witholding amount straight.
Yep, ours is going to property taxes also. May is our fun month. Last installment of property taxes, homeowner's insurance, car insurance and health insurance all are due.
Now that is the pits!
For me the pits is getting a text from one's sister informing you that she's sending a K-1 tax form because your deceased father earned a boatload of dividends during the first part of 2015 (before she distributed the estate) that you now owe taxes on. So now, not only did I only get $100 back from the state to cover a $1,000 tax bill to the feds, but I have to do amended tax returns for both the state and feds and send them both money. woohoo...
Yeah, we got the dreaded K1 from a trust due to complex rules and two estates. Only a lawyer could understand those rules. We had to file two different state returns.
ApatheticNoMore
4-16-16, 6:57pm
Ok tiny refund (didn't know about that ACA stuff like I said). Half savings, and of the remaining half - 1/3 spend on stuff (maybe just a plant from the nursery ha), 1/3 on experience (not much itself, save up for a 3 day weekend vacation sometime or something?), 1/3 I'll give away to peeps in need (not family haha).
Got my refund in record time. Guess I'll use part of it buying a red milkhouse heater to replace one that started sparking and died recently. Big spender.
So, did anyone wait until today to go to the post office and mail their returns? Since I had to file revised returns I had to actually mail them. I went friday and it was about a 10 minute line (and $2.51 to mail both returns). Today the line at the post office was out the door and down the street.
In Massachusetts taxes are due today. We get an extra day since yesterday was a state holiday (Patriots Day). But I'd already beat the deadline (for once!). My accountant electronically filed them on Friday after I reviewed and signed them. Had to pay the state a bit and my accountant, but even after all of that will get a $1000 refund. My income was wildly unpredictable last year so I figure this was an acceptable margin of error. The $1000 will go toward paying down the mortgage.
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