Taxes

[tapestrygirl]

Got my $600 stimulus check through direct deposit on wednesday. Thank goodness because my checking account was overdrawn $537 unbeknownst to me. Guess that I wont be spending that money to help stimulate the economy. Ha.

[Jamie]

Or, you already did!

[tapestrygirl]

Nope my stupid rent check was the culprit. Dammit.

[Jana]

My George Bush stimulus payment arrived yesterday. I got $300, which is certainly appreciated, but will probably be spent on groceries and maybe a nice dinner out when I go on my trip at the end of the month.

[Jamie]

My stimulus payment beat my return.

[Jana]

I divvied up my stimulus payment in thirds between necessities, a gift, and a donation to Obama's campaign. I stimulated the economy a little bit, spent some money I would have spent anyway, and gave the rest to the cause that I care about and believe in most right now.

[Jamie]

My 06/final return check came in the mail today - along with a letter warning me that they can't direct deposit it and a check is coming.

Oh well, this is everything, and my "Jamaica money" is here, hurray!

[Aron]

My refunds were finally processed last week, so I should be getting them in the next 2-4 weeks. But I won't be getting my stimulus check until early July. Damn if my accountant do a great job getting me refunds but he didn't fill out the direct deposit info.

[Heather]

We just got our stimulus check on Friday, also. Woo! Ours is mostly going toward paying off Bill's car, spending a little, and then going towards a credit card.

[bonkrood]

My stimulus payment won't be issued til 7/4 according to the online thing. Which sucks because my last 2 are 31 but I guess since I owed taxes this year and mailed my tax payment ON 4/15 it was delayed. I owe my brother money and I feel horrible having to wait for that check to get here to pay him back. But at least I know that although it hasn't arrived yet, it isn't just missing in action.

[Jamie]

I collected unemployment and had 14 jobs this year, and Matt spent six months getting paid from Canada.

This year's taxes are going to be AWESOME!

[tapestrygirl]

This is the first time since I did my 2001 taxes that I will be able to file a 1040EZ. Thank the fucking lords.

[KarenD]

Getting a refund this year that's bigger than I'd like; looks like I overreacted to having to pay so much last year when I adjusted my withholding. I had hoped having someone else do our taxes would help with this sort of thing, but it has not.

[Jamie]

Filed. It always feels so damn GOOD when they are done, doesn't it?

[Jamie]

And, my return is pending in my bank account right now. Since it cuts my CC debt in half, this is a very good thing.

[Jamie]

YAY FOR MARRIED PEOPLE TAXES!

[Teena]

We had ours done last night, and we are getting a big enough return that we are seriously considering either a new couch or a new TV (the new couch is a more desperate need, but a shiny new TV to replace the one I hate is a big temptation). The lady who did our taxes was very intimidating though... she kept spouting off streams of tax-babble and looking at us expectantly, then sighing heavily and rephrasing her statement into obvious "stupid people speak". After the first three or four times, you'd think she'd learn and start with the stupid people speak, but she seemed to enjoy baffling us. We won't be using her again, I think.

[Jana]

I do my own taxes - when you don't own property and don't have complicated brokerage accounts, it's super easy. I got my federal refund last week and used it to purchase a bedroom TV, and I plan to use my state refund to purchase a dresser to put it on. And now I think I need to adjust my withholdings so that I am not getting such huge refunds in the future.

[Jamie]

Matt's doing ours.

[tapestrygirl]

And now I think I need to adjust my withholdings so that I am not getting such huge refunds in the future.

Jana, why would you do this? Is there some benefit? I always have them take out the most because if it isn't there, I won't wastefully spend it on small shit. Getting a big return each year helps me plan for big expenses. One year I used that money to move across the country. This year I'm talking two small, but fun, vacations with it.

[Harmony]

Giving the government more than you owe them means that you give them an interest-free loan on your money all year, and then you have to ask for it back. My goal is always to break even, so that I don't owe or have to pay, but I don't want a big refund because it means I've been letting the government have my money. I'd rather have it and invest it or put it in savings where I at least earn a little interest on it, and particularly so I can control it. And, right now, I can't afford for them to take any more of it, because we need it all to live on and put into our various retirement and education funds.

That being said, we are getting a monster return this year because of the homebuyer's tax credit. I am looking forward to it only because we will demolish some debt with it, which will increase our monthly disposable income.

[Teena]

Yeah, I agree with wanting to break even for the exact reason Harmony cited. This year our return is much larger than usual (we usually do get a return, but not a big one) because of a couple of one-time-only credits, one being $800, and a larger than usual education credit, etc.

[Jana]

Teena, the $800 credit wasn't in your and Philip's paychecks over the course of the year? Interesting.

Harmony is exactly right about the refunds. I don't want to loan the government money and while it is always nice to get money back and use it on a one-time purchase or a trip, I save for those things throughout the year and every $10 or $15 is more money I can save or use to treat myself to things that have been cut out of my budget. It was nice to be able to buy a TV and new dresser sooner than planned, but I really wish I'd seen that money throughout 2009.

I also have the problem of being taxed on money I don't actually earn because of how the government and my employer treat my tuition benefit for my MBA program. 2010 will be the first year when I've been in classes during all 4 quarters, and my paychecks have taken a huge hit to compensate for the extra withholding for the extra $16k in income that I am not earning in real dollars. If I start taking two classes per quarter, that will be an additional $32k in taxable income that does not result in actual dollars for me each year. I realize this is a first-world problem, but it means my paychecks have been significantly reduced and I may not be able to afford to take two classes per quarter starting this fall as I had planned.

[Heather]

We haven't done ours yet this year. We have a friend who is an accountant and she always does ours for free. We usually just take her out to dinner or for drinks or something (so I guess it's not really FREE, but whatever). We will probably get a little more back this year because we both took graduate classes this summer and get credits for that. I like getting the big refund like tap. Whenever I know I'm getting big refund, like when we bought our house and got married, than we always put that towards a vacation or big purchase. This year we'll use some of it for our vacation to CA this summer and probably use the rest towards debt.

[tapestrygirl]

Harmony is exactly right about the refunds. I don't want to loan the government money and while it is always nice to get money back and use it on a one-time purchase or a trip, I save for those things throughout the year and every $10 or $15 is more money I can save or use to treat myself to things that have been cut out of my budget. It was nice to be able to buy a TV and new dresser sooner than planned, but I really wish I'd seen that money throughout 2009.

See, that's my problem. I am no good at saving. I have a savings account with 4$ in it. To have the extra money in my paycheck each week would do me no good. I'd spend it on stupid shit I don't need/want instead of saving. This works better for me. And I don't mind loaning the gov my money. They need it.

[Adrienna]

I like getting a decent-sized refund. My dad used to bitch at me for giving the government an interest-free loan, but the ROI on actually saving it isn't worth the risk of spending it during the year.

I don't have any plans for my refund -- probably allow me to not touch my savings accounts while I go to Vegas in March and do a few more upgrades on the Triumph.

ETA: To get a refund, I have to do my taxes. Soon, I promise.

[Jana]

See, that's my problem. I am no good at saving. I have a savings account with 4$ in it. To have the extra money in my paycheck each week would do me no good. I'd spend it on stupid shit I don't need/want instead of saving. This works better for me. And I don't mind loaning the gov my money. They need it.

You make a good point and if that's what works for you, that is a totally viable savings strategy (obviously). I can't say I mind the windfall. But I do most of my savings in $10-25 increments because my pay is so low, so a little bit more in my checks would be nice. But like I said upthread, I was happy to buy a TV and set aside money for something to put it on, too. I often overwithhold because I am so scared of owing more money in April.

[Heather]

That is the worst. One year I totally fucked up my withholdings accidentally and had to pay over $600. I really couldn't afford it either, so that was major suckage. Another reason that I like to get more of a larger refund is because when I play gigs sometimes I have to pay taxes on them because they aren't taken out when I'm paid. There is a music camp that Bill and I do in the summer that is like that and we have to pay a pretty substantial amount of taxes on it. If we pay in more money then it balances out more and we still get a little refund. Last year it was kind of small because of those gigs and camps. This year hopefully will be more because of the classes we took over the summer.

[Jamie]

I was hoping to save a little more from our return than we will, but we have some housekeeping/unexpected expenses that have to be covered - doesn't it always seem like it works out that way, these things pop up RIGHT when you get a windfall? Anyway, we have to pay for our funeral trip and a car check-up and car insurance is due and all that has severely cut into our tax savings plans. I was hoping to get the better part of a house down payment out of it. Oh, well.

[Teena]

doesn't it always seem like it works out that way, these things pop up RIGHT when you get a windfall?

Yes. Now a large part of our return will be going to pay for some medical expenses. We are still debating whether or not we'll get a new TV with the rest of it or not (I hate just spending an entire windfall without putting at least some of it into savings).

[Harmony]

Yes, totally. Our tax return will go to bills this year, but every year we get some money from my dad for Christmas or our anniversary, and it always seems to coincide with the car needing something expensive, or needing to buy oil for the furnace, or some other giant expense.

[Jamie]

I just found this withholding calculator which might be useful for some of you guys.