When did you file your Taxes, what is your status...

Starting a few years back when I got hit with a huge "due" bill ($2500), I started inputting my #'s through a few of the online services just to see if they agreed (within reason). They did (unfortunately for me). I use TT though.

I am in no hurry to file as I anticipate I will owe $$ this year - that's designed. If you're getting back a ton of cash you're giving the gov't an interest free loan - I'd much rather have that in my pocket over the course of a year, so I've tweaked our W4's to make the withholding and tax liability closer. I re-evaluate every October-ish just to make sure we're on track for the year (October such that there's still time to adjust a W4 that would make a difference)

Quote from Dr. J : If you're getting back a ton of cash you're giving the gov't an interest free loan - I'd much rather have that in my pocket over the course of a year,

Sadly, some people are just stupid. The rest are just financially inept and blatantly admit that they use their tax withholdings as a means to "save" money to make big purchases come tax time.


I have not filed yet as I have not received all of my tax documents yet. Pretty sure I am getting money back, so will likely file in the next couple weeks.

Quote from travathian : Sadly, some people are just stupid. The rest are just financially inept and blatantly admit that they use their tax withholdings as a means to "save" money to make big purchases come tax time.

Please explain why an interest free loan is bad?

I'm not losing any money that way. My potential to gain money is only hindered (not really because I don't invest outside of my 401k/Roth). Besides the government needs it more.

While I don't like what you say, I will defend your right to say it.

Quote from 0mega : Please explain why an interest free loan is bad? I'm not losing any money that way. My potential to gain money is only hindered (not really because I don't invest outside of my 401k/Roth). Besides the government needs it more. While I don't like what you say, I will defend your right to say it.

Really...you are trying to defend floating someone the use of your money for free?

Even if you are talking a couple of percent, that is a couple percent interest in your pocket and not the tax man's. So you are losing income. If you do not have the discipline to save on your own and want uncle sam to hold your money for free, that is your choice but it is not one that makes any fiscal sense whatsoever.

I am constantly amazed at how people want to get huge refunds. If you do it right you should aim for owing zero come 4/15. Pay what you owe, not a penny more. Estimating income is not exact obviously so you will always be off +\- some amount, but if you are off by a big number intentionally, you are just wasting money by floating the gov. a free loan of your cash.

Besides the above, keep in mind there is always the opportunity cost if you legitimately need money at some point.

Lets say I adjust my withholdings so that I break even over the year, versus getting a big refund. I put that money into some crappy saving account getting me <1% interest, but it is available immediately.

My HVAC units breaks. I need major surgery. A family member has a crisis and needs financial help.

I have that money available to help now.

This is versus taking it out of my emergency fund, costing me earned interest. Or worse, putting it on a credit card, costing me accrued interest til I get my tax refund. Or worst of all, if I am really financially inept like so many are, go to one of those cash advance places for a short term loan, costing me an arm and a leg til I get my refund check.

So not only are you giving the government an interest free loan, but it is costing you money if the country is in an inflationary period with regards to currency. Granted putting those funds in a savings account may not completely negate inflationary losses, it is still better than being at a definite loss. And again, the money is available right now if you need it, avoiding the above penalties.

And if somehow you do your taxes and it shows that you owe? Guess what. The government has basically given you an interest free loan that whole time! Plus you have til 4/15 to come up with the money. (assuming the amount owed doesn't exceed the penalty threshold)

Well then.... I think I have made the ground rumble a bit... I am in a new job this year, making close to double what I did last year, so was was scared I wasn't putting in enough.. I got back a pretty good bit. Actually pretty happy with the outcome.
Since no one else seems to care I will still keep updated on my original post...
Today's status on "wheres my refund"

We have received your tax return and it is being processed.
You should get your refund within 21 days from the date we received your tax return.

Quote from travathian : Besides the above, keep in mind there is always the opportunity cost if you legitimately need money at some point. Lets say I adjust my withholdings so that I break even over the year, versus getting a big refund. I put that money into some crappy saving account getting me <1% interest, but it is available immediately. My HVAC units breaks. I need major surgery. A family member has a crisis and needs financial help. I have that money available to help now. This is versus taking it out of my emergency fund, costing me earned interest. Or worse, putting it on a credit card, costing me accrued interest til I get my tax refund. Or worst of all, if I am really financially inept like so many are, go to one of those cash advance places for a short term loan, costing me an arm and a leg til I get my refund check. So not only are you giving the government an interest free loan, but it is costing you money if the country is in an inflationary period with regards to currency. Granted putting those funds in a savings account may not completely negate inflationary losses, it is still better than being at a definite loss. And again, the money is available right now if you need it, avoiding the above penalties. And if somehow you do your taxes and it shows that you owe? Guess what. The government has basically given you an interest free loan that whole time! Plus you have til 4/15 to come up with the money. (assuming the amount owed doesn't exceed the penalty threshold)

Well not quite.... if you wind up owing the gov't too much they will penalize you - isn't that great? They'll hold onto many thousands of dollars of YOUR money for free, and if the tables are turned they charge you for it.

Facts of the matter are, most people would not save the extra that they get back at tax time. We are comfortable with what is in our paycheck. We haven't adjusted in awhile for increasing deductions. This year we are getting back around $7k. I will probably adjust taxes this year so that drops about 1/2. I am ok with the gov't holding $3-$4k of my money for me. Makes a nice little bonus check when it comes in at tax time.

Quote from dealgate : I am ok with the gov't holding $3-$4k of my money for me. Makes a nice little bonus check when it comes in at tax time.

Why not just give yourself a $60 - $75 bonus per week

Quote from 0mega : Please explain why an interest free loan is bad? I'm not losing any money that way. My potential to gain money is only hindered (not really because I don't invest outside of my 401k/Roth). Besides the government needs it more. While I don't like what you say, I will defend your right to say it.

The government needs it more?

Are you serious?

The IRS does take donations if you didn't know so just cut them a check if you think the government needs it more than you do.

Quote from afratki : Why not just give yourself a $60 - $75 bonus per week

Forced savings.

Quote from dealgate : Facts of the matter are, most people would not save the extra that they get back at tax time. We are comfortable with what is in our paycheck. We haven't adjusted in awhile for increasing deductions. This year we are getting back around $7k. I will probably adjust taxes this year so that drops about 1/2. I am ok with the gov't holding $3-$4k of my money for me. Makes a nice little bonus check when it comes in at tax time.

Facts of the matter are Americans continue to prove how utterly worthless they are when it comes to fiscal knowledge and responsibility. Financial ignorance, laziness and irresponsibility akin to this are why privatizing social security would be disastrous for virtually everyone in this country, and why we need to go back to pension funds and ditch the 401k system.

It baffles me on a website where people routinely complain about paying tax or shipping, or wanting to return something to Amazon just to save a buck, can be so lazy and/or ignorant about their income taxes and withholdings. Is it really so hard to convert that short term "gotta find a deal" fiscal attitude into a long term "gotta put away some money" attitude?

Quote from travathian : Facts of the matter are Americans continue to prove how utterly worthless they are when it comes to fiscal knowledge and responsibility. Financial ignorance, laziness and irresponsibility akin to this are why privatizing social security would be disastrous for virtually everyone in this country, and why we need to go back to pension funds and ditch the 401k system. It baffles me on a website where people routinely complain about paying tax or shipping, or wanting to return something to Amazon just to save a buck, can be so lazy and/or ignorant about their income taxes and withholdings. Is it really so hard to convert that short term "gotta find a deal" fiscal attitude into a long term "gotta put away some money" attitude?

Whatever. I have a fat $7000 check coming in not earmarked for anything.