Filing Taxes for 2006
#91
Re: Filing Taxes for 2006
Originally Posted by Big D
You mean dont pay withholding until the final bill is due? I thought that they charged penalties for that? Sorry - I dont really know as i am lucky enought to get all that sorted! Quite glad as it seems like a mine field!!!
As long as you keep it below a certain figure, they swallow it.
#92
Re: Filing Taxes for 2006
Originally Posted by BritGuyTN
it took a while to convice her that bob and michelle were retarded in letting the IRS have their money for most of the year - interest-free
You should tell your wife that you are far more investment-savvy than Bob and Michelle combined.
#93
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Filing Taxes for 2006
Originally Posted by snowbunny
To be fair, unless Bob and Michelle are willing to take the time (and have the investment smarts) to avoid underwithholding AND to invest the savings in a way that will net them more than the current > 1% nominal savings rate, Bob and Michelle are probably safer as is.
You should tell your wife that you are far more investment-savvy than Bob and Michelle combined.
You should tell your wife that you are far more investment-savvy than Bob and Michelle combined.
#94
Re: Filing Taxes for 2006
Originally Posted by BritGuyTN
true, but I don't think its that tough just to get the standard withholding for a married couple and open a 4.25% account with hsbc...
One thing is for sure - if the IRS hold your money for you for a few months you sure as heck aren't going to fritter it away during that time.
I would have no probs getting a reasonably large refund as it would give me a lump sum that I can put to better use than say an extra $100 per pay check. The 4.25% interest for a few months is hardly going to get me enough for a good night out.
#95
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
Hate to seem like a wet blanket here, but for all the difference its going to make who really cares.
One thing is for sure - if the IRS hold your money for you for a few months you sure as heck aren't going to fritter it away during that time.
I would have no probs getting a reasonably large refund as it would give me a lump sum that I can put to better use than say an extra $100 per pay check. The 4.25% interest for a few months is hardly going to get me enough for a good night out.
One thing is for sure - if the IRS hold your money for you for a few months you sure as heck aren't going to fritter it away during that time.
I would have no probs getting a reasonably large refund as it would give me a lump sum that I can put to better use than say an extra $100 per pay check. The 4.25% interest for a few months is hardly going to get me enough for a good night out.
If you like the excitement of a big windfall once a year, pay the IRS less and put the difference in an automatic savings plan -- your financial institution will no doubt be happy to provide one for you. Now the money is liquid (useful for emergencies) and you benefit from its earning potential.
What's so difficult to understand about that?
#96
Re: Filing Taxes for 2006
Originally Posted by fatbrit
On your first paycheck of the year, you pay additional funds to the IRS bank of no interest. That money will be released 13 months down the road. The money is not liquid and you do not get the benefit of its earning potential.
If you like the excitement of a big windfall once a year, pay the IRS less and put the difference in an automatic savings plan -- your financial institution will no doubt be happy to provide one for you. Now the money is liquid (useful for emergencies) and you benefit from its earning potential.
What's so difficult to understand about that?
If you like the excitement of a big windfall once a year, pay the IRS less and put the difference in an automatic savings plan -- your financial institution will no doubt be happy to provide one for you. Now the money is liquid (useful for emergencies) and you benefit from its earning potential.
What's so difficult to understand about that?
As for the automatic savings plan option - well many people lack the financial restraint to leave the cash there for a year without dipping into it now and again.
Anyway, you've missed my point. The subtexts of a lot of the posts on here seemed to be saying that people who get a big refund are either lazy or stupid. I'm quite happy to get a big refund for the reasons explained, and frankly I have better things to do with my time instead of trying to calculate how I can minimize my withholdings so that I end up with say an extra $500 over the course of the year, assuming that I did not spend the cash well before the year end.
To me it seems like one of those penny wise, pound foolish things - if you're that bothered about having your tax in a savings account for the year I assume that you drive a hybrid motor and have solar panels on your roof.
Each to his own as far as this goes, but I'll take my refund and have fun with that for which I have had to waste no time or effort on throughout the year.
#97
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
The subtexts of a lot of the posts on here seemed to be saying that people who get a big refund are either lazy or stupid.
#98
Re: Filing Taxes for 2006
Originally Posted by fatbrit
Yes
Surely if the govt has your cash they will be earning interest on it anyway, which will ultimately end up contributing to the greater good.
#99
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
Funny how a democrat can come across as so money hungry
Surely if the govt has your cash they will be earning interest on it anyway, which will ultimately end up contributing to the greater good.
Surely if the govt has your cash they will be earning interest on it anyway, which will ultimately end up contributing to the greater good.
Last time I took the test, I was a fiscal liberal.
Kevntrace stated that: "The refund covers my house tax for the next year and covers the flights for our annual trip back to the UK. "
They live in the Bay area -- so I would expect property tax to be rather high.
I expect at least a 10% return on my money.
So I guess they're probably throwing away at least 3 figures if not 4 every year for the sake of maybe 30 minutes work and a little discipline.
If you're not capable of self-discipline, we have a few of this board who can train.
#100
Re: Filing Taxes for 2006
Originally Posted by fatbrit
I expect at least a 10% return on my money.
#101
Re: Filing Taxes for 2006
Originally Posted by fatbrit
If you're not capable of self-discipline, we have a few of this board who can train.
Of course, fatbrit, without the Bobs and Michelles of the US, the IRS would be cash starved and would start insisting on even greater penalties for underwithholding and pre-payment.
Bob and Michelle are doing you a favour.
#102
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
Didn't you quote 4.25%. If you are expecting 10% them you are most likely investing in equities where the return is not guaranteed, and if you do this all in 30 minutes then you are either A) chosing your investments rather recklessly and B) paying some fund manager through the nose in fees to invest your cash for you, in which case, following your train of thought re making better use of your cash you'd be better off investing it yourself.
I expect my money to earn 10% overall! Some of it is in a checking account (~2%) for everyday spending, some of it is in savings accounts (~4%) for emergency cash, and some of it is in a variety of investments (???%). Together, I like them to make at least 10%. So if someone wants to borrow $100 off me for a year and then only give me a $100 back at the end, I reckon they've nicked $10 off me.
#103
Re: Filing Taxes for 2006
Originally Posted by snowbunny
Try Bob and Michelle first.
Of course, fatbrit, without the Bobs and Michelles of the US, the IRS would be cash starved and would start insisting on even greater penalties for underwithholding and pre-payment.
Bob and Michelle are doing you a favour.
Of course, fatbrit, without the Bobs and Michelles of the US, the IRS would be cash starved and would start insisting on even greater penalties for underwithholding and pre-payment.
Bob and Michelle are doing you a favour.
First rule: let the idiots pay!
#104
Re: Filing Taxes for 2006
Originally Posted by fatbrit
I expect my money to earn 10% overall! Some of it is in a checking account (~2%) for everyday spending, some of it is in savings accounts (~4%) for emergency cash, and some of it is in a variety of investments (???%). Together, I like them to make at least 10%. So if someone wants to borrow $100 off me for a year and then only give me a $100 back at the end, I reckon they've nicked $10 off me.
#105
Re: Filing Taxes for 2006
Originally Posted by fatbrit
First rule: let the idiots pay!
Yet again, I see you are democrat to the core