Comments on: What To Do With That Income Tax Refund? http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/ Fri, 10 Feb 2012 19:14:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Stephanie PTY http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-3176 Stephanie PTY Mon, 13 Apr 2009 04:57:09 +0000 http://studenomics.com/?p=813#comment-3176 @MyLifeROI: as a college student, my "primary residence" is still my mother's house. This is the main way that she "supports" me, so according to the government, she is eligible to claim me as a dependent. We compared my tax forms to her tax forms this year, to see who would get the bigger benefit by claiming me. Because she would get the bigger benefit, she claimed me and then paid my tax bill. I do consider myself lucky, although it was my idea ;) @MyLifeROI: as a college student, my “primary residence” is still my mother’s house. This is the main way that she “supports” me, so according to the government, she is eligible to claim me as a dependent. We compared my tax forms to her tax forms this year, to see who would get the bigger benefit by claiming me. Because she would get the bigger benefit, she claimed me and then paid my tax bill. I do consider myself lucky, although it was my idea ;)

]]> By: Craig http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2976 Craig Thu, 09 Apr 2009 18:35:22 +0000 http://studenomics.com/?p=813#comment-2976 I'm thinking about opening an IRA account and putting all of it in there so I can finally begin a retirement account. I’m thinking about opening an IRA account and putting all of it in there so I can finally begin a retirement account.

]]> By: MyLifeROI http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2973 MyLifeROI Thu, 09 Apr 2009 18:19:44 +0000 http://studenomics.com/?p=813#comment-2973 Ramavich & Laura -- Average refund is about $2,500. At 3% for the year that is $75 in "free money to the government." For most people the security of a refund at a cost of $75 is much more appealing than the chance that they screw up their withholding and owe money all of a sudden. Would I rather owe $2,500 (and get $75 in interest) or be owed $2,500 (and lose an opportunity for $75 in interest)? I choose refund every time. And I am good at saving and not spending! Ramavich & Laura –

Average refund is about $2,500. At 3% for the year that is $75 in “free money to the government.”

For most people the security of a refund at a cost of $75 is much more appealing than the chance that they screw up their withholding and owe money all of a sudden.

Would I rather owe $2,500 (and get $75 in interest) or be owed $2,500 (and lose an opportunity for $75 in interest)? I choose refund every time. And I am good at saving and not spending!

]]> By: Laura http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2957 Laura Thu, 09 Apr 2009 12:07:40 +0000 http://studenomics.com/?p=813#comment-2957 Ramavich, I totally agree with you. If you get a large refund that is your money that you should have had all along. The goal is to break even. I would rather owe money when I file my taxes. As long as you don't owe so much that you have to pay a penalty, that was an interest free loan from the government. I always owe a little at the end and that is perfect. It means that I am getting the maximum paycheck that I can. Ramavich,
I totally agree with you. If you get a large refund that is your money that you should have had all along. The goal is to break even. I would rather owe money when I file my taxes. As long as you don’t owe so much that you have to pay a penalty, that was an interest free loan from the government. I always owe a little at the end and that is perfect. It means that I am getting the maximum paycheck that I can.

]]> By: Ramavich http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2930 Ramavich Thu, 09 Apr 2009 00:39:51 +0000 http://studenomics.com/?p=813#comment-2930 Why would you want to get money back? That is a free loan to the government. Our goal is to get as close to zero as possible, but owing a small amount is not bad either. Something in the tax code changed this year and totally messed us up and we're getting a large refund. Probably will go towards landscaping and summer camps for the kids. Why would you want to get money back? That is a free loan to the government. Our goal is to get as close to zero as possible, but owing a small amount is not bad either. Something in the tax code changed this year and totally messed us up and we’re getting a large refund. Probably will go towards landscaping and summer camps for the kids.

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