So, my aunt (who is more like a second mother) told me when I first started working that getting a large refund check during tax season meant that you gave the government a free loan all year and now you are getting excited about getting your own money back... So I have always tried to "play" with my allowances until I broke even or close to it...Well this year not so well, I did not claim enough allowances and I am getting a rather large (in my opinion) refund check back, but this is not all bad. With this kind of boost to my debt repayment plan, I can speed up (pay off) my CC debt and save my money instead to increase my emergency fund greatly. Instead of taking a year to reach my $1000 emergency fund now I can get really ambitious (I do not have an exact goal in mind yet). At this point in my debt repayment plan an unexpected refund check is a great thing. I am going to be CC debt free in less than my projected 6 months...
But now I need to go back to the drawing board with these allowances...I am going to ask my accountant cousin when she finalizes my taxes...
How is tax season looking for you?
Friday, January 23, 2009
Tax Time!!!
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3 Comments:
Yes a large refund is money missing from your check each month. Take the refund and divide by 12 and that's what you're missing from your paycheck. I've almost got ours to a breakeven point. As interest rates change, jobs change, income increase and fluctuates it's hard to pinpoint the safe amount of allowances.
This year income wise was great because my wife is out of school and can earn some income. So instead of getting a big 2k credit she can earn more income without the student loans increasing. I'm trying to determine if I want to file my return myself, use software, or go back to HR Block like I normally do. The thing it boils down to this year is cost. Going to the tax guy is obviously the most expensive option, but at least I could blame them if a mistake was made. I don't think I made any mistakes this year because my numbers seem accurate.
Good luck with paying off the CCs and getting an EF together. We're probably doing the same, half EF and half CC debt. If all goes well we can be down to 4 cards this summer.
hey lady...long time no comment...glad your getting money back so u can speed up the process. good luck to ya
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So with this in mind I have a little offer for you....
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Alex Preece
Bad with my money, great with other peoples!
Negotiator
Giant Investments
E: alex.preece@giant.org.uk
T: 01273 224002
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