Raargant Posted January 31, 2008 Report Share Posted January 31, 2008 So who else is having 'fun' doing taxes right now? Heh. I actually should get back about $2,500, so I'm fairly happy... Link to comment Share on other sites More sharing options...
songofsixpence Posted January 31, 2008 Report Share Posted January 31, 2008 Getting back is all well and good, but I'd rather have to pay it in. Means I've had that money out there earning me interest and doing good rather than sitting in Uncle Sam's pockets. Of course, I know I'll be getting back some too, not sure how much yet as I don't have either of my W-2's from my employers...All I have to say is that I better get them soon, or someone's gonna get hurt a real bad. Link to comment Share on other sites More sharing options...
KRins Posted January 31, 2008 Report Share Posted January 31, 2008 My return according to my lovely tax program should be the exact amount of my car payment...very convenient America. Link to comment Share on other sites More sharing options...
Aeva Posted January 31, 2008 Report Share Posted January 31, 2008 Getting back is all well and good' date=' but I'd rather have to pay it in. Means I've had that money out there earning me interest and doing good rather than sitting in Uncle Sam's pockets.[/quote'] yay for FL having a financially aware and responsible pbase (or at least one person other than me ) after deductions and all, i try to pay around 2-300 bucks each year. Link to comment Share on other sites More sharing options...
Talcian Posted January 31, 2008 Report Share Posted January 31, 2008 But it makes one oh so happy when they get a fat check! "Here son, go buy you something nice" Link to comment Share on other sites More sharing options...
Lytholm Posted February 1, 2008 Report Share Posted February 1, 2008 I always seem to be in the boat of having to pay them :( Lytholm. Link to comment Share on other sites More sharing options...
Nightmare_from_hell Posted February 1, 2008 Report Share Posted February 1, 2008 yay for FL having a financially aware and responsible pbase (or at least one person other than me ) after deductions and all' date=' i try to pay around 2-300 bucks each year.[/quote'] I don't really understand that. I would much rather break even or earn back a LITTLE than having to pay anything. As long as the amount you get back is not a lot, then you are keeping the most in your pocket at all times, not just before you pay taxes, and not just after. I usually come out getting about 1-200 bucks back, but at times I've had to pay as much. I guess I'm just sort of that balance kinda guy. Link to comment Share on other sites More sharing options...
L-A Posted February 1, 2008 Report Share Posted February 1, 2008 I don't really understand that. I would much rather break even or earn back a LITTLE than having to pay anything. As long as the amount you get back is not a lot' date=' then you are keeping the most in your pocket at all times, not just before you pay taxes, and not just after. I usually come out getting about 1-200 bucks back, but at times I've had to pay as much. I guess I'm just sort of that balance kinda guy. [/quote'] Think of what Aeva is saying this way (note: this is a vastly simplified exampe but will be sufficient for illustrating the point): You are going to owe the Taxman $10 000 this year due to the income you have. You have two choices: 1) Pay the Taxman $11 000 and after you submit your tax return you will receive $1 000 back. Net profit for you: $0 Net profit for the Tax man: Whatever interest he can get off the $1000 you lent him interest free for the year. 2) Pay the Taxman $9 000 and when tax time comes write him a cheque for the remainin $1 000. Net profit for you (assuming SI @ 10%pa) = $1000 * 0.1 = $100 Net profit for the Taxman: Nothing since he gave you the interest free loan this time. The catch comes when you're actually spending that $1000 throughout the year instead of putting it somewhere to gain interest and get fast access to pay your tax bill when it comes. Its a question of financial management and understanding present and future values of money. By holding cash that you need for your expenses for as long as possible you gain more interest. While the amount of interest earned can be small, if you put it all away and never touch it adds up over time (espeically if you are always gaining it) due ot the power of compound interest. I always used to get money back at tax time but in the last few years (via good financial management) I've managed to create certain parts of my income that I'm not taxed on throughout the year. This means I keep all the profits and any interest I can get on these. When tax time comes around I draw out the payment date as long as possible before I have to pay the bill. This was I get a maximum amount of time for my money to work for me. There are many, many more things that you can do when it comes to tax time and I'd urge everyone to go and get some good advice. There is a lot you can legally do. Many people don't realise many of the simple things - even if you couldn't do it on this year's tax return you may be able to set things in motion for next years tax return. L-A Link to comment Share on other sites More sharing options...
Aulian Posted February 1, 2008 Report Share Posted February 1, 2008 Hahaa... Due to Finance 101... I actually know what LA was talking about... Damn - who said uni doesnt pay off? Link to comment Share on other sites More sharing options...
Dizz Posted February 1, 2008 Report Share Posted February 1, 2008 Yeah, but who has that kind of discipline? Link to comment Share on other sites More sharing options...
BigPapa Posted February 1, 2008 Report Share Posted February 1, 2008 Yep, Pali's got it right.. $1000.00 plus interest, but divide that by 52 weeks and what do you get extra per week? 19 bucks?? So you have to put 19 a week in an interest bearing something or other... I dont have the discipline either Dizz... Give me a fatttt Check,, or as I call it ,, VEGAS CHECK! Link to comment Share on other sites More sharing options...
Pali Posted February 1, 2008 Report Share Posted February 1, 2008 Yep, Pali's got it right.. $1000.00 plus interest, but divide that by 52 weeks and what do you get extra per week? 19 bucks?? So you have to put 19 a week in an interest bearing something or other... I dont have the discipline either Dizz... Give me a fatttt Check,, or as I call it ,, VEGAS CHECK! Wow, I didn't think I said that... I guess I'm such an insane genius that I write out absolutely awesome financial advice but don't remember it. Link to comment Share on other sites More sharing options...
Chayesh Posted February 2, 2008 Report Share Posted February 2, 2008 Here's the catch though...the IRS is wise to this. If you don't allow them to collect enough taxes throughout the year (by claiming something ridiculous like 9 exemptions on your W-4) from your paycheck, you'll actually be penalized when it comes time to do your tax return. Basically, you'll be assessed an additional fine for "undercollection" (sometimes referred to as "underpayment") and then informed that you must pay tax installment payments for the next year...in advance. In other words, you will figure (i.e. guess) how much tax you owe next year, then divide it by 4, and pay them quarterly. Bottom line: If you are single with one job, living on your own, claim 2. I usually did and had to pay maybe once and never more than $100 while grossing over $25K a year. I am, of course, not any kind of tax professional or an accountant and in no way, shape, or form should this be construed as professional advice. It's nothing more than my friendly opinion offered. Link to comment Share on other sites More sharing options...
Mudder Posted February 2, 2008 Report Share Posted February 2, 2008 I'm pissed. I'm a student and made ~10k. They took ~450 of taxes from me and want me to pay ~150 more. Screw them! I'm a damn student. So i'm having my friend take a little looksie at my stuff and see if he can hook me up. (Hes an Accountant) Link to comment Share on other sites More sharing options...
Balgashang Posted February 2, 2008 Report Share Posted February 2, 2008 I look at the taxes as my free savings account, because I too, have a weak will, and would spent that extra money throughout the year. However, I am thinking of just trying to save my return this year, which I still have yet to file, I been single living on my own claiming 0 for exemptions, I should be getting like, 2500 back, I believe, cause I didn't file last year, was missing a w-2, but someone told me i could like, miss filing a year and be fine, especially if i was owed a return...I dunno tho. Hello everyone, its been a while heh. Link to comment Share on other sites More sharing options...
TheNewGuy Posted February 3, 2008 Report Share Posted February 3, 2008 I'm pissed. I'm a student and made ~10k. They took ~450 of taxes from me and want me to pay ~150 more. Be glad you don't live in Sweden. On those 10k, you would have taxed about 2200-2300. And the more you earn, the worse it get. We have the highest taxes in the world. YAY! On the other hand, going to the university for free rocks. We even get paid to do it, if not much. Link to comment Share on other sites More sharing options...
Dizz Posted February 3, 2008 Report Share Posted February 3, 2008 I look at the taxes as my free savings account' date=' because I too, have a weak will, and would spent that extra money throughout the year. However, I am thinking of just trying to save my return this year, which I still have yet to file, I been single living on my own claiming 0 for exemptions, I should be getting like, 2500 back, I believe, cause I didn't file last year, was missing a w-2, but someone told me i could like, miss filing a year and be fine, especially if i was owed a return...I dunno tho. Hello everyone, its been a while heh.[/quote'] File that last return anyway. If you don't file, the IRS gets touchy and may think you are hiding something. Use the last paystub of the missing tax year for your gross income amount. It should be relatively easy to figure out from there. Besides, that extra money would be nice and you don't want to get fined up the wahoo for not filing. Link to comment Share on other sites More sharing options...
L-A Posted February 4, 2008 Report Share Posted February 4, 2008 Yep, Pali's got it right.. $1000.00 plus interest, but divide that by 52 weeks and what do you get extra per week? 19 bucks?? So you have to put 19 a week in an interest bearing something or other... I dont have the discipline either Dizz... Give me a fatttt Check,, or as I call it ,, VEGAS CHECK! Perhaps, then again you could consider: $19 start @ 7% compound interest in a savings account that gives you 7%p.a. compounded monthly. Add $19.00 per week that the tax man is giving you every week and call it your 'retirement account' in addition to your 401K (I think that's what Superannuation in the States is called isn't it?) Assuming 40 years until retirement that $19 as week will be worth $220,320.32 when you retire. Its not millions BUT considering you should be planning for retirement early its certainly a nice little bonus come retirement. Also, note that the $220.320.32 will yield $15422.42 income per year @ 7%p.a. SI once you are retired. When considered with whatever other retirement plans you have in place (Are 401K mandatory now?) it might add up to a nice little retirement without money issue no matter how long you live. Chayesh: I don't know the States tax system but I have no doubt you are correct. Its not much different over here only that you have to have pass a certain threshold before they try to force you to pay installments quarterly towards your upcoming tax bill. Trying to stay below the threshold is one strategy you might look into. Not really much of an incentive for good financial management when people who work hard and try to put away to gain interest and other benefits instead of just SPEND SPEND SPEND get it right in the @$$ everytime. Time to find some larger deductions to claim.... L-A Link to comment Share on other sites More sharing options...
Raargant Posted February 4, 2008 Author Report Share Posted February 4, 2008 Out of curiosity, where in the world are you guys putting your money, to get a 10% interest rate in a savings account? Link to comment Share on other sites More sharing options...
a-guitarist Posted February 4, 2008 Report Share Posted February 4, 2008 That's what I want to know. I'm doing the financial stuff in my head now, and the research, best I can come up with locally is 3.2% a-g Link to comment Share on other sites More sharing options...
Chayesh Posted February 4, 2008 Report Share Posted February 4, 2008 Mutual funds ftw Link to comment Share on other sites More sharing options...
Raargant Posted February 4, 2008 Author Report Share Posted February 4, 2008 Stocks, mutual funds, certain money markets, etc. etc., sure. But savings account interest rates? Link to comment Share on other sites More sharing options...
Evangelion Posted February 4, 2008 Report Share Posted February 4, 2008 Worry less about investing your rapidly-depreciating capital, and more about finishing that damn story. Link to comment Share on other sites More sharing options...
L-A Posted February 4, 2008 Report Share Posted February 4, 2008 Out of curiosity' date=' where in the world are you guys putting your money, to get a 10% interest rate in a savings account?[/quote'] 10% was strictly an example andto make the maths easier 7% is more realistic - or should I say optimistic. Checked it just after I posted and I'm getting 6.4% on a 'Savings account.' One of the institutions that doesn't deal with any cash and requires you to use your bank account to transfer in and out. This means cash access is around 3 days which is easy enough to factor in when you need money. If you find a 10% account please let me know - even having to pay conversion to $USD I'd be ahead Either way, compound interest is your friend. L-A Link to comment Share on other sites More sharing options...
Mali Posted February 4, 2008 Report Share Posted February 4, 2008 I'm with Evangelion on this one Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.