Woohoo- You get a huge tax refund!

**Russ** · 02-11-2010, 11:27 AM

Why? :thinking:

You are giving your dear Uncle Sam an interest free loan!

Change your deductions on your W4 and pay your debt sooner if that is what you are doing with your refund. It saves interest over the course of the entire year.

You don't know how to claim and get just a little back?
Go here and fill out the worksheet> http://www.irs.gov/pub/irs-pdf/fw4.pdf

Ok Greebo... please add what I'm missing.

**Palooka** · 02-11-2010, 06:06 PM

Eh, I see your point but I think it's personal and easier for some to pay off debt when they get a huge refund.

I mean if some get a take home pay bigger they might not be disciplined to use the little extra money wisely to pay down debt.

Some people look forward to that large refund.

We did not get a large federal refund, but the kids helped.

We owe one state and get a refund from the other. DH works out of state. So when we get that refund and pay the other, that will be 60 bucks in our pocket.

I don't think there is a right or wrong way. I know that most financial guru's don't want you to get a huge refund.

Just what some prefer.

**Contrary Housewife** · 02-11-2010, 06:22 PM

We do this, have as little as possible taken out, but it is tricky as DH is a consultant and his job and salary can change twice in a year. A lot of people do not have the discipline to take that "extra" in their paycheck and put it away or pay off debts.

**monkeywrangler71** · 02-11-2010, 06:34 PM

Most people will save more out of a large lump sum refund than they would from a small weekly pay increase. What's better on paper doesn't necessarily work out to be better when you add in the psychological factor.

It's just like Dave Ramsey's debt payoff plan - it isn't the best on paper, but it works because psychologically it is easier.

**Mom2-3** · 02-11-2010, 06:38 PM

It's all a matter of personal finance. I own my business. I have to be careful not to cut it too close and owe too much. That and DH works overtime that could be as much as $15,000 more in a year.

Personally I wouldn't want to get $6000 back, but something under $2000 is comfortable for us. We know people that use taxes as a savings account. That used to be us, now we are more "adult"

**dolphin** · 02-11-2010, 06:53 PM

We get a "refund"! Yay!

We were scared as our situation is different this year with dh being layed off for 4 months.

We have not "earmarked" our refund for anything at this point. It will go into savings/emergency fund. That being said....dh has saved quite a sum to buy a used truck for work travel and this could be the "topper" needed to get that perfect truck. No matter what it will be cash but this would give him leaway to buy a truck that isn't even running for a cool price and still have the funds to repair it. Or,......there is always our sweet ds who just seems to "KNOW" when we have funds available, lol........

**bumplett** · 02-11-2010, 06:55 PM

<~ I'd rather have my money each paycheck to do with what I choose - even if it means a small refund.

IMO a small refund means we did something right.

**TigerGirl1226** · 02-11-2010, 07:04 PM

After having to pay before, we prefer to err on the side of a refund than paying.

**krbshappy71** · 02-11-2010, 07:53 PM

I wuv my tax return. In two years I wont have any kiddos to get the EIC or deduction, etc. so I'll have to watch what my w2 says after that year. For the next two years I'm going to let them have my money and ask for it back at the end of the year. *grin*

**Josephhgoins** · 02-11-2010, 09:51 PM

I jsut changed mine and put the difference in my 401 which my employer matches. I make interest on it during the year and IF I need to I can get a loan from it and pya myself back at Prime +1%.

**sinopa27** · 02-12-2010, 01:04 AM

I believe you are right about this. My friend got a $9,000 refund
last year but was broke every payday.

**Palooka** · 02-12-2010, 01:10 AM

Originally Posted by sinopa27

I believe you are right about this. My friend got a $9,000 refund
last year but was broke every payday.

Holy cow! What did she claim and also make?

Kids?

**MomToTwoBoys** · 02-12-2010, 01:18 AM

This is why I prefer a monthly tax credit over a credit at once. I got $3700 back one year with one kid, so imagine how much more you get for extra kids. No wonder people are out there having tons of kids...

My sister has three kids, gets a lot back, then blows the whole thing on herself.

Yeah, not my cup of tea.

I guess people can do what they want with their taxes, but after being in the US system and the Canadian system, I'd rather get my taxes monthly.

DH and I don't even get back all of what's taken out of him. 15% up to $40,732 (I think that's the number), then another 22% of the different between $40,934. Then on top of that, there's the 10% of taxable income being taken out as a provincial tax. We're lucky to see 45% of the money that's taken out of DH's check.

Talk about being taxed to death.

**tlenad** · 02-12-2010, 08:23 AM

I am really ready for the tax thing to settle down. This year I am getting a large refund back but it is due to the Home Buyer's Credit and school expenses. Hopefully after next year, I'll have a better idea of what my taxes will really look like.

Normally I get a few hundred to maybe a thousand back but nothing like it has been the past few years. School expenses really increase the refund that I received the past few years. Thankfully I am done with school, hopefully for the rest of my life.

At least this year's refund will help me along with the goals I have laid out for this year.