What are you doing with your tax refund?

[Maenad]

I know with this crowd it's a stupid question, but between our electric car tax credit, and an unexpectedly large bonus for me, we're able to deposit an extra $20K into Vanguard over the next month!

So, for those of you with tax refunds, are you putting it all into savings, save some/spend some, or splurging on that vacation in Tahiti?

 

[Accidental Retiree]

We are going to buy our first I-Bonds, about $200 worth.

 

[TOOLMAN]

I sold a house last year in MD. Maryland has a crazy Non-Resident Transfer Withholding Tax. Getting a 30K refund which will go into the ER fund. Bought house for mother in law,but she died before moving in. Took a 30K loss on the deal. But it was for a good cause as it made her very happy at the end of her life. A reverse inheritance, you could say.

 

[rbmrtn]

Can't remember the last time I got refund.

 

[gardenfun]

half of mine is going for the lovely new crown on one of my teeth.

I need to find that thread where you all discussed how bad dental (self) insurance is. Even the receptionist at the dentist office advises against it.

The other half is going toward a trip to Cape Cod in June.

 

[RockyMtn]

What refund? Paying Feds and the State.

 

[padlin00]

I Bonds, and I'll be on the Cape in June too.

 

[Moemg]

Half went to new landscaping and the other half will pay for our vacation rental. We are having a mini family reunion in Pa. in June .

 

[HighRoller]

I really try not to overpay the government any taxes during the year so that typically means no refunds for me. Of course sometimes unusual events do happen.

 

[jclarksnakes]

What is a refund?

 

[SumDay]

We have to cough up $10,000 this year, so the question is, what are you guys doing with my $$$?

 

[Texas Proud]

What is a refund?

+1 I owe a few thousand!!!

 

[jollystomper]

What is a refund?

+1

Haven't seen one of those since we starting dropping kids off of the dependent allowances.

 

[Meadbh]

I rarely get a refund, but a trivial one is possible this year. If so, I will put it into general revenue.

 

[FIREd]

No refund for me this year.

 

[scrabbler1]

Since I ERed it is impossible for me to get a refund because I pay estimated taxes and always underpay by a few hundred dollars (less for state). Back in my working days, I got a refund only if I made a mistake or my investment income came up very short.

 

[audreyh1]

I only get a refund if I mess up paying my estimated taxes. I really, really try to avoid that!

Frankly, I'd rather pay a small penalty than get a refund.

 

[jclarksnakes]

We have to cough up $10,000 this year, so the question is, what are you guys doing with my $$$?

Living well!! Thank You!

 

[W2R]

I got $80 back from the IRS, but owed $19 to Louisiana, so that leaves a whopping difference of $61. I'll try not to spend it all in one place.

 

[timo2]

Closing costs on refinancing

 

[project2501]

Refund? There should never be a refund. Agreed if playing the Feds game it's best to aim for the zero. Never let someone borrow your money in advance and make interest off it when you could.

Of course every circumstance is different. Oconus. I don't pay estimated nor would I want to play. That's just another game of over paying up front. Claim exempt all year, take the extra and play the market to see if can make enough to cover what i'd owe at the end anyways. Some years it's worked out well, some real close. Sure makes me feel better writing that end of year check to pay them in full.

While others in my profession try not to pay taxes at all, we won't go into those methods. They freak when I say how much I wrote a check for but they can't fathom the method or have the discipline to execute it.

With current markets, wrote the check without even blinking.

 

[MichaelB]

I haven't done my taxes yet but don't expect a refund. If there is one it will be applied toward the 1Q estimate for 2013.

 

[Midpack]

Our unplanned/unexpected FIT $1800 refund will pay our $1600 state income tax liability. I didn't realize how ridiculously low our FIT taxes would be without my income, 0% CG/div taxes up to $70.7K taxable income is crazy IMO - but I won't make that mistake again. We've not had a FIT refund (by design) in at least 20 years, I always underpaid to the penalty limit where possible.

 

[audreyh1]

I haven't done my taxes yet but don't expect a refund. If there is one it will be applied toward the 1Q estimate for 2013.

Yep, that's what I do.

 

[Walt34]

Usually I come as close as I can to breaking even, neither owing or getting a refund. Last year for some reason I badly overestimated taxes so we got a bit over $2,200 back from federal and state.

That will pay for about half of the new central air conditioner we'll be buying next month. The original is 11 years old and has a leak in the evaporator so it isn't worth fixing.