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-   -   Tax Return 2011 Plans (http://www.early-retirement.org/forums/f30/tax-return-2011-plans-54264.html)

MBAVisionary 01-17-2011 11:40 AM

Tax Return 2011 Plans
 
Young Dreamers. What are you doing with yours and why?

I plan to use mine to pay off a big chunk of what's left on my car loan and my 0% credit card before September rolls around and I owe the fine folks at Citibank more money!! A few years ago I used mine to buy a computer that I really didn't need. How growing up changes your purchasing habits... :)

Of course I make the assumption you don't owe the IRS or your respective state / local governments money due to withholdings or other factors.

FIREd 01-17-2011 11:45 AM

This year I'll have to send a large check to the IRS, so... Not looking forward to April 15. I might get some money back from the state but they are broke so who knows when I'll get the check. At any rate, any money I get back will go towards paying down the mortgage.

frayne 01-17-2011 11:48 AM

I'll break about even, just the way I planned !

Westernskies 01-17-2011 11:56 AM

There is no joy in Mudville.
Writing checks to the state and the feds.

scrabbler1 01-17-2011 11:59 AM

I never saw getting a tax refund as anything good. All it meant to me was that either I lacked getting some income I thought I was going to get (i.e. cap gains distributions to which I had already had some wage income taxes withheld for), or I made a mistake with my estimated taxes and overpaid them.

Since I ERed, I have zero income taxes withheld so I pay just enough federal income taxes during the year (and through the following mid-January) to be in a "safe harbor" to avoid underpayment penalties, then pay the rest in April. For my state income taxes, I prepay most of them by the end of December so I can deduct them on the next federal income tax return instead of waiting another year.

aaronc879 01-17-2011 12:04 PM

Due to my upcoming 3 week vacation and an unexpected $1000 condo assessment I haven't maxed my Roth yet like I usually do. After a couple grand in tax returns I should be able to max the Roth and still have at least 6 months cash in E-fund. So, as always, it'll go into savings of some kind. I tried adjusting my w-4 so that in 2010 i'd be close to even but I ended up paying in and didn't like that so I changed it back this year and should get a couple grand.

Aiming_4_55 01-17-2011 12:19 PM

I expect a larger than normal refund this year. It'll go to the kid's 529 fund since Roths and 401k are max'd.

easysurfer 01-17-2011 12:30 PM

Last year I owed some (not a whole lot) for both Fed and State and expect to owe some again this year.

Texas Proud 01-17-2011 01:00 PM

I have not determined if I am getting a refund or owing money...

If I get a refund... it will go into the MM account to fill it up for next years property tax...

RonBoyd 01-17-2011 02:39 PM

Quote:

Originally Posted by MBAVisionary (Post 1025509)
Of course I make the assumption you don't owe the IRS or your respective state / local governments money due to withholdings or other factors.

When loaning money interest-free is concerned, I prefer to owe them rather than the other way around.

freebird5825 01-17-2011 02:49 PM

Quote:

Originally Posted by MBAVisionary (Post 1025509)
Young Dreamers. What are you doing with yours and why?

I'll answer this in two parts...

Young Dreamers...I'm young at heart and only 52. ;)

What are you doing with yours and why?...Please don't leave me openings big enough to drive a tractor trailer through. :laugh:

Seriously, now...IF I get a refund, I will be banking it for the spring to continue the multi-stage house window replacement project I have embarked on. Little by little, I need to replace these ridiculously engineered with a hangover designed 1977 vintage casement windows that leak energy like a sieve.
My contractor (also a friend) is not charging me very much for the labor ;D and understands I can only budget for a few at a time.

MBAVisionary 01-20-2011 04:05 PM

Quote:

Originally Posted by frayne (Post 1025514)
I'll break about even, just the way I planned !

Break even is way better than owing in my opinion. I think the attitude of the average person at least in America is to blow the money.

MBAVisionary 01-20-2011 04:10 PM

Awesome to see that you guys are being practical about the whole thing. Most of my friends are blowing theirs. I have never tried adjusting my withholding. Guess I'd rather have the government owe me a little money than the other way around.

brewer12345 01-20-2011 04:20 PM

Its a bit of a crapshoot as to whether I will owe or not. DW's business unexpectedly tripled in 2010. While we can avoid fed and state income taxes via a solo 401k, we are still on the hook for the self employment taxes. Since we have not paid in over the course of last year, that might eat some or all of what would otherwise be a fed refund. The states are always a mystery. I work in one and live in another and they don't play nice with each other, so mysteries abound until I fill out the returns.

Midpack 01-20-2011 04:33 PM

Hopefully I won't get a refund. Like every year, if all goes well I will owe Fed, and I know I will owe State. If I unfortunately get a refund, it'll go right back into saving/investing...

obgyn65 01-20-2011 05:19 PM

My taxes are a bit complex (with incomes from 2 countries) so I will go with HR Block.

Fireup2020 01-20-2011 05:19 PM

My $31 federal refund is going to pay my $256 state tax owed! These are not final numbers - I estimated off final pay stubs, 1 of 3 W-2's, tuition statement, and Dec. banking statements - but think it's pretty darn close! My goal has been +/- $250 (between state & federal), and I am happy to have accomplished that (not thrilled about paying taxes in first place, but it's a necessary evil for where & how I chose to live)!!

SecondCor521 01-20-2011 09:25 PM

I was hoping to get a small refund but from a quick trial run it looks like I will owe several hundred to the feds. If that holds true when I do the real return, then I'll probably end up owing the state a few hundred also.

If I owe, I'll write a check and mail it as close to April 15 as I can. If they owe me, I file as soon as possible, do direct deposit, and then it gets shuttled into cash flow / savings / investing just like any other income.

2Cor521

NinjaPigeon 01-23-2011 08:06 PM

Using mine to pay down the business credit card to a more reasonable level, as most of my return for the last two years has come from losses on my K-1 anyway.

fireandearth 01-25-2011 12:40 PM

If I get a refund I'll top off my savings for my next used car. My 2000 Corrolla is still going strong, but it'll happen eventually.

This is my first year filing taxes on my own after a divorce, so I'm not sure what things are going to look like.


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