Income Taxe time Whats everyone doing with the returns???

You have a lot of studying to do, better get to work.

 

Ok thanks. I'll let the three CPAs I work know that they are also doing something wrong, since they also receive refunds.

 

I saw a race car at the track - the guy who owned it was a cpa and he was advertising his business - on the trunk lid was a cartoon of a cpa with adding machines and tape all over - it said "2 + 3" - "What do you want it to be ?"

 

I think I understand what some are trying to say here.

On one hand, change your filing status so that each paycheck is for more. Essentially not allowing the gov to "borrow" that $ at no interest. You put that amount in your account and earn interest on it. Risk owing $ for not allowing enough deductions.

The other hand, keep your filing status the same get paychecks for less and look forward to a refund at the end of the year (if you have an itemized return, mortgage interest, etc.). Risk: you lose the interest you could have made on the money the gov. "borrowed".

I prefer getting a check at the end of the year and not having to worry about possibly owing money.

 

This risk of not having the "balance due" is minimal if a person is a disciplined saver. Easy to do with automatic deposit, allotments, on-line banking, etc.

 

Income Tax

If they can straighten out the [AIG] matter
should get money back
I will believe it when the check clears

 

I don't know if your need to have the last word or desire to lead the league in forum posts is motivating you, or if you just don't get it.

I never said anyone was wrong or right (check the posts if you care to) so it's clear you didn't actually read what I wrote.

 

You said;

That statement is incorrect, plain and simple. You can think whatever you want, it just annoys me when people try to pass off false information as accurate.

 

What statement? You are the one that said selling property would give you a larger refund. When I asked you to clarify you ignored it (because it is a ridiculous statement).

Having a mortgage and writing off the interest is indeed a GREAT tax advantage. But you can take advantage of that savings throughout the course of the year, it doesn't have to be in a lump sum at the end of the year in the form of a refund. That is what you keep missing.

But whatever, you're not really concerned with getting it. You just want to get the last word and look smart & tough on the forum. That's cool.

 

To answer the original question - what to do with the "refund" - I am an aggressive saver so money is allocated into a roughly three pots: rainy day fund, future car fund and a travel/vacation fund. Same thing with pay raises with a portion allocated to quality of life. Takes discipline. That and not carrying a credit card balance.

 

Selling property is another write-off because you can deduct the cost of selling (i.e. realtor commission, attorney fee, etc). The only way to get the mortgage interest deduction is on the Schedule A part of your return, not throughout the course of the year. You can have the last word now since everyone on this forum already knows I'm smart and tough (and I'm cool and I shred).