10 responses to “Taxes!!!!!

  • addvodka

    I know it breaks PF rules but I really don’t mind tax refunds. They’re like automatic savings accounts, which is awesome.

  • Alice @ Dont Debt

    There were many years that I made plans for our tax refunds. Then I read a book or two by Dave Ramsey and changed my mind. Ever since, I’ve been reducing the amount I get back at tax time and increasing my paycheck.

    If you don’t trust yourself with a larger paycheck, set up an automatic transfer into savings. I’m guessing you have direct deposit of your regular paycheck? Typically, you can split the deposit between accounts. That way, you’ll never see that money in checking, and you won’t be ‘as’ tempted to spend it on needless things.

  • debtntaxes

    @addvodka- That’s the exact thinking I have, I am more likely to use the large lump sum as a debt payment than if I had the smaller amounts each month.

    @Alice- I can totally see your point, and I read that in Dave Ramsey’s book also lol. At my workplace we can add up to four different bank accounts to split the paycheck into, and that is something that I plan on doing once the house is refinanced and our other debts are paid off. It does make saving way easier to do it automatically. It’s not that I don’t trust myself with the larger paycheck, because I would use it to pay down debt, I just know that there will be times where I wouldn’t put all of it towards the debt.

  • BrokeElizabeth

    I’ve never filed taxes, but I completely agree… I don’t mind giving the government an interest free loan if it means that I am not able to spend that extra $100 on junk.

  • Renee

    I changed our withholding after two years of receiving $5000+. Most of it is due to the Additional Child Tax Credit which is refundable and I cannot do anything about that portion (~$3000).

    • debtntaxes

      I think I would change my deduction if my refund ever got around $3-3.5k, until then we will probably keep it the same. We don’t have any children yet but I’m sure it would be nice to have some of that extra money during the year to help with random child expenses.

  • John | Married (with Debt)

    I used to like getting the return, but now I try to make it as small as possible. I do treat it like “found money” and put it towards a spending goals.

  • C The Writer

    Hi there… :p

    I think you mean refund, not return. Tax return is what you file every year, refund is money you get back. So people who file returns might get $0 back, or they might owe the government something.

    Anyway, I get refunds every year because of the earned income credit. The interest free loan is so small, I don’t really care. I like getting the little bit of money back, but unfortunately for me, it had to be spent.

    • debtntaxes

      Return/refund, same difference. The money that you get back in your “refund” is still being “returned” to you. You’ll get there, just keep working your extra job like you have been. Every little bit adds up.

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