What will you do with your tax refund?

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Bwlonge
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What will you do with your tax refund?

Post by Bwlonge » Thu Jan 25, 2018 1:09 pm

I'm getting a nice sized refund, mostly by amending 2016 to account for my IRA contribution last year, as well as repairs to my duplex. So its not really coming out ahead in any way, but its a decent influx.

Part of me wants to do something fancy with it, like pay off the last bit of student loans; but I think I'll end up doing something boring like having it on hand toward my E-fund or just dump it into 2018 IRA.

What are you going to do with your refund?

jehovasfitness
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Re: What will you do with your tax refund?

Post by jehovasfitness » Thu Jan 25, 2018 1:11 pm

Besides a student loan and mortgage, only debt we have is a car loan. So, it will go towards paying that off.

magicrat
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Re: What will you do with your tax refund?

Post by magicrat » Thu Jan 25, 2018 1:13 pm

My tax refund (or the tax I owe) goes into my March budget as income. To the extent the actual figure is greater than the budgeted figure, the difference will get invested according to my IPS and AA.

mega317
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Re: What will you do with your tax refund?

Post by mega317 » Thu Jan 25, 2018 1:36 pm

I would use a refund to better understand my tax situation so that I can avoid a refund in the future.

annielouise
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Re: What will you do with your tax refund?

Post by annielouise » Thu Jan 25, 2018 1:46 pm

Our refund will be about $7k. This wasn't the plan, but, due to the new tax law, we donated 5 years + of charity budget to our DAF at the end of 2017.

At this point, it is just entered as income in our 2018 budget. I'll have a better idea when DH's April bonus is announced because that will help determine what options we have. Gotta strong feeling that the bonus will be either $0 or very small, so the chickens are staying uncounted.

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whodidntante
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Re: What will you do with your tax refund?

Post by whodidntante » Thu Jan 25, 2018 1:47 pm

mega317 wrote:
Thu Jan 25, 2018 1:36 pm
I would use a refund to better understand my tax situation so that I can avoid a refund in the future.
Same here.

Bwlonge
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Re: What will you do with your tax refund?

Post by Bwlonge » Thu Jan 25, 2018 1:49 pm

mega317 wrote:
Thu Jan 25, 2018 1:36 pm
I would use a refund to better understand my tax situation so that I can avoid a refund in the future.
Yeah, this this the first year I'm taking the reins on my own taxes. I've planned for 2018 and have my checks adjusted so shouldn't get a refund in the future. Hopefully I calculated correctly so I don't get hit with an underpayment fee.

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celia
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Re: What will you do with your tax refund?

Post by celia » Thu Jan 25, 2018 1:50 pm

I usually apply it to the following year's tax, because the amount is not that large.

There is a "problem" if you are getting a refund so large you have to decide what to do with it!

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unclescrooge
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Re: What will you do with your tax refund?

Post by unclescrooge » Thu Jan 25, 2018 1:56 pm

It will probably go towards landscaping my back yard.

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steelerfan
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Re: What will you do with your tax refund?

Post by steelerfan » Thu Jan 25, 2018 2:04 pm

I will be getting ~ $2700 back - mostly due to advanced Charitable contributions due to new tax law. I will be putting my refund back into savings.
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RRAAYY3
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Re: What will you do with your tax refund?

Post by RRAAYY3 » Thu Jan 25, 2018 2:08 pm

If i do get one - it'll go to an index fund.

Woo. Hoo.

H-Town
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Re: What will you do with your tax refund?

Post by H-Town » Thu Jan 25, 2018 2:10 pm

Bwlonge wrote:
Thu Jan 25, 2018 1:09 pm
I'm getting a nice sized refund, mostly by amending 2016 to account for my IRA contribution last year, as well as repairs to my duplex. So its not really coming out ahead in any way, but its a decent influx.

Part of me wants to do something fancy with it, like pay off the last bit of student loans; but I think I'll end up doing something boring like having it on hand toward my E-fund or just dump it into 2018 IRA.

What are you going to do with your refund?
I don't have any loan so I'd put the entire amount into savings (whether it's Roth/401k/brokerage account/saving account, it's up to you).

barreg
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Re: What will you do with your tax refund?

Post by barreg » Thu Jan 25, 2018 2:19 pm

I plan my W2 withholding so that my annual tax rebate or amount due is fairly negligible (under $100 either way).

bloom2708
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Re: What will you do with your tax refund?

Post by bloom2708 » Thu Jan 25, 2018 2:57 pm

If I get one it will partially fill up our Property Tax Fund for next year. Not very fun, but have to fill it back up.
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TwstdSista
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Re: What will you do with your tax refund?

Post by TwstdSista » Thu Jan 25, 2018 3:07 pm

Savings -- all $300.

BigMoneyNoWhammies
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Re: What will you do with your tax refund?

Post by BigMoneyNoWhammies » Thu Jan 25, 2018 3:08 pm

Bwlonge wrote:
Thu Jan 25, 2018 1:09 pm
I'm getting a nice sized refund, mostly by amending 2016 to account for my IRA contribution last year, as well as repairs to my duplex. So its not really coming out ahead in any way, but its a decent influx.

Part of me wants to do something fancy with it, like pay off the last bit of student loans; but I think I'll end up doing something boring like having it on hand toward my E-fund or just dump it into 2018 IRA.

What are you going to do with your refund?
Pay off CC debt and the remainder goes into my IRA

Texanbybirth
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Re: What will you do with your tax refund?

Post by Texanbybirth » Thu Jan 25, 2018 3:15 pm

We'll probably go to Disney Land. (We have family there.)

And true up our escrow because our property taxes keep increasing. :P

(Due to large bonus income, I CANNOT avoid a federal income tax refund. I haven't had w/h from my regular paycheck in years.)

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djpeteski
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Re: What will you do with your tax refund?

Post by djpeteski » Thu Jan 25, 2018 3:16 pm

Apply it to next year's estimated tax.

lazydavid
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Re: What will you do with your tax refund?

Post by lazydavid » Thu Jan 25, 2018 3:30 pm

mega317 wrote:
Thu Jan 25, 2018 1:36 pm
I would use a refund to better understand my tax situation so that I can avoid a refund in the future.
Oh how I wish it were that easy....After almost 15 years of marriage, I can't convince my wife that a large income tax refund is a bad thing. Her withholdings are Single/0/extra. :( Mine are Married/0, and she's threatened me with bodily harm (and an increase of her "extra") if I go any further than that.

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teen persuasion
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Re: What will you do with your tax refund?

Post by teen persuasion » Thu Jan 25, 2018 7:34 pm

celia wrote:
Thu Jan 25, 2018 1:50 pm
I usually apply it to the following year's tax, because the amount is not that large.

There is a "problem" if you are getting a refund so large you have to decide what to do with it!
Our refunds are already earmarked for our Roth IRAs.

There's no "problem" with big refunds due to refundable credits, other than the fact that we have to wait to receive our refunds. Oh, and kids grow up and age out of eligibility, so large refunds are a phase for us.

Ron
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Re: What will you do with your tax refund?

Post by Ron » Thu Jan 25, 2018 7:43 pm

We always split ours down the middle.

I'll probably spend my $8.00 on lunch.
I have no idea what she will spend her $8.00 on.

:mrgreen: :mrgreen: :mrgreen:

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Windylotus
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Re: What will you do with your tax refund?

Post by Windylotus » Thu Jan 25, 2018 7:49 pm

The wife and I are getting a (long overdue) will drawn up. The rest is going into our emergency fund.

Agggm
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Re: What will you do with your tax refund?

Post by Agggm » Thu Jan 25, 2018 7:51 pm

Bwlonge wrote:
Thu Jan 25, 2018 1:09 pm
I'm getting a nice sized refund, mostly by amending 2016 to account for my IRA contribution last year, as well as repairs to my duplex. So its not really coming out ahead in any way, but its a decent influx.

Part of me wants to do something fancy with it, like pay off the last bit of student loans; but I think I'll end up doing something boring like having it on hand toward my E-fund or just dump it into 2018 IRA.

What are you going to do with your refund?
My refund between state and federal is about 200 to 300. So I can't do much with it. No plans.

ETadvisor
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Re: What will you do with your tax refund?

Post by ETadvisor » Thu Jan 25, 2018 7:58 pm

bloom2708 wrote:
Thu Jan 25, 2018 2:57 pm
If I get one it will partially fill up our Property Tax Fund for next year. Not very fun, but have to fill it back up.
+1 Property taxes are high. The cost for safe neighborhood with excellent public schools.

patrick
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Re: What will you do with your tax refund?

Post by patrick » Thu Jan 25, 2018 9:52 pm

I don't expect to get a refund this year, but when I did get them I just considered it an addition to my overall assets. For the federal refund I had put it in I bonds a couple of times to be able to buy more of them.

bhsince87
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Re: What will you do with your tax refund?

Post by bhsince87 » Thu Jan 25, 2018 9:59 pm

I've never had one in 32 years!
Retirement: When you reach a point where you have enough. Or when you've had enough.

Gnirk
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Re: What will you do with your tax refund?

Post by Gnirk » Thu Jan 25, 2018 10:44 pm

What's a refund? :o

raisinsaregrapes
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Re: What will you do with your tax refund?

Post by raisinsaregrapes » Thu Jan 25, 2018 10:54 pm

Put it into the mortgage. Owe about 20k on a mortgage and trying to pay it off by the end of April.

The Wizard
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Re: What will you do with your tax refund?

Post by The Wizard » Thu Jan 25, 2018 11:05 pm

I should have a decent refund this year due to paying an additional $4000 property tax on short notice in late December.
I'll probably toss it into my taxable investment account.
Goal in subsequent years is to owe a few hundred so as to make stealing my ID non feasible...
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grabiner
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Re: What will you do with your tax refund?

Post by grabiner » Thu Jan 25, 2018 11:20 pm

I try to avoid a refund, because of the possibility of it getting held up if something goes wrong. (This has never happened to me with the IRS, but has happened three times with state refunds.) I set my withholding to estimate the true tax due, and adjust during the year if my situation changes (for example, I make a large donation to charity).

I have twice received a large refund when I couldn't avoid it: once when I decided to make a large donation to charity in December, and once when I filed an amended return to recharacterize a Roth IRA conversion in September of the year after I made it (and on which I had paid a large bill in April). I don't have anything special to do with my refund; it goes into my bank account, and when the tax refunds, paychecks, and dividends cause me to have a lot of spare cash, I use that cash to buy ETFs or mutual funds in my taxable account.
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Nearly A Moose
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Re: What will you do with your tax refund?

Post by Nearly A Moose » Thu Jan 25, 2018 11:27 pm

Gnirk wrote:
Thu Jan 25, 2018 10:44 pm
What's a refund? :o
+1
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

Daryl
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Re: What will you do with your tax refund?

Post by Daryl » Fri Jan 26, 2018 6:07 am

I'm hoping to buy lunch; however, I'll probably have to chip in a couple dollars from my normal monthly budget. Tax refund/payment is likely to be less than $5.

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Toons
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Re: What will you do with your tax refund?

Post by Toons » Fri Jan 26, 2018 6:10 am

I did not loan the government any money,therefore,
I am not receiving a Refund.












:P
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StevieG72
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Re: What will you do with your tax refund?

Post by StevieG72 » Fri Jan 26, 2018 7:18 am

I will be paying taxes to federal for sure.

I may get a state refund due to a large contribution to a 529 plan. This will be applied to 2018 to reduce quarterly estimated tax payments.

Side note, never loan money to anyone who will repay contingent on thier tax refund!
Fools think their own way is right, but the wise listen to others.

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oldcomputerguy
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Re: What will you do with your tax refund?

Post by oldcomputerguy » Fri Jan 26, 2018 7:21 am

Bwlonge wrote:
Thu Jan 25, 2018 1:09 pm
What are you going to do with your refund?
Maybe buy a nice dinner for DW and me. If my math is right, it'll be less than $100. But that's okay, that's how I planned it, as I don't want to give Uncle Sam free use of my money for the year.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

Bwlonge
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Re: What will you do with your tax refund?

Post by Bwlonge » Fri Jan 26, 2018 11:27 am

Alternatively, how much do you have to owe before they charge you an underpayment fee?

jayk238
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Re: What will you do with your tax refund?

Post by jayk238 » Fri Jan 26, 2018 11:39 am

Im going to save up for our move this july and to jumpstart paying our expenses then

nolesrule
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Re: What will you do with your tax refund?

Post by nolesrule » Fri Jan 26, 2018 12:12 pm

We made a rather large DAF contribution that was not planned for at the very end of the year to take advantage of our last chance at itemizing for the forseeable future, so we're getting a much larger refund than originally planned for. We'll probably allocate some of the refund toward some home improvement projects and vacations, with the rest getting split out in the same manner as we do with all monthly leftover funds.... Most goes into our brokerage account, some gets allocated to charitable donations, upcoming home improvement project savings, some to our kids long-term savings, and some to mortgage paydown.

JimmyD
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Re: What will you do with your tax refund?

Post by JimmyD » Fri Jan 26, 2018 1:39 pm

It amazes me how some of you can come within just a few dollars of breaking even on your taxes. Wish I had those kind of skills.

For the two of us, looks like we'll be getting somewhere in the neighborhood of $2,500 back. That's going into savings and a month or so later when I can scrape together another $3,000, going toward my backdoor Roth IRA contribution.

DrGoogle2017
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Re: What will you do with your tax refund?

Post by DrGoogle2017 » Fri Jan 26, 2018 1:47 pm

I’m thinking of applying for next year tax. But I’m nervous of the IRS, they lose things, like one of my amended 2014 tax returns, no records of me filing twice.

The Wizard
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Re: What will you do with your tax refund?

Post by The Wizard » Fri Jan 26, 2018 6:25 pm

JimmyD wrote:
Fri Jan 26, 2018 1:39 pm
It amazes me how some of you can come within just a few dollars of breaking even on your taxes. Wish I had those kind of skills.

For the two of us, looks like we'll be getting somewhere in the neighborhood of $2,500 back. That's going into savings and a month or so later when I can scrape together another $3,000, going toward my backdoor Roth IRA contribution.
It's not too hard if your income isn't too variable and if the tax system is unchanged year to year.
So obviously, there's a hiccup for all of us for 2018 income and the tax return filed early next year.
I plan to recalibrate my withholding 13 months from now...
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ray.james
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Re: What will you do with your tax refund?

Post by ray.james » Fri Jan 26, 2018 6:31 pm

For a third year in a row I owe IRS, this time over 1K but I am fine as I crossed 100% of last year dues.
Three years ago, I had a 9$ due, which made me feel genius.
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H-Town
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Re: What will you do with your tax refund?

Post by H-Town » Fri Jan 26, 2018 6:34 pm

JimmyD wrote:
Fri Jan 26, 2018 1:39 pm
It amazes me how some of you can come within just a few dollars of breaking even on your taxes. Wish I had those kind of skills.

For the two of us, looks like we'll be getting somewhere in the neighborhood of $2,500 back. That's going into savings and a month or so later when I can scrape together another $3,000, going toward my backdoor Roth IRA contribution.
We have big bonus that always set to overholding at 28% rate no matter how much I told HR to withhold. I did what I could to reduce the refund. Throw in year-end charitable contributions and other itemized items, it's almost impossible to get close to the tax due.

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Re: What will you do with your tax refund?

Post by Sandtrap » Fri Jan 26, 2018 6:36 pm

whodidntante wrote:
Thu Jan 25, 2018 1:47 pm
mega317 wrote:
Thu Jan 25, 2018 1:36 pm
I would use a refund to better understand my tax situation so that I can avoid a refund in the future.
Same here.
+1

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blaugranamd
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Re: What will you do with your tax refund?

Post by blaugranamd » Fri Jan 26, 2018 6:37 pm

whodidntante wrote:
Thu Jan 25, 2018 1:47 pm
mega317 wrote:
Thu Jan 25, 2018 1:36 pm
I would use a refund to better understand my tax situation so that I can avoid a refund in the future.
Same here.
After getting like $4k back last year o adjusted our withholdings trying to do this. May have overshot a bit and owe $2k ish. I guess that's why we have savings though.
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ohai
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Re: What will you do with your tax refund?

Post by ohai » Fri Jan 26, 2018 11:21 pm

I've been getting negative refunds for the past few years. I think it has to do with how bonus income taxes are withheld, since I haven't been trying to game my W4. I get a bill for dividends as well, which is not nice, but understandable...

ETadvisor
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Re: What will you do with your tax refund?

Post by ETadvisor » Sat Jan 27, 2018 10:41 am

Texanbybirth wrote:
Thu Jan 25, 2018 3:15 pm
We'll probably go to Disney Land. (We have family there.)

And true up our escrow because our property taxes keep increasing. :P

(Due to large bonus income, I CANNOT avoid a federal income tax refund. I haven't had w/h from my regular paycheck in years.)


This is interesting. I may also fall in this boat but I do w/h. Would your bonus need to exceed your base or equal 50% of base. What if 10-15% of base? I guess only one way to find out.

Copernicus
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Re: What will you do with your tax refund?

Post by Copernicus » Sat Mar 03, 2018 6:04 pm

djpeteski wrote:
Thu Jan 25, 2018 3:16 pm
Apply it to next year's estimated tax.
State refund of 2017 will raise 2018 Fed taxable income. If you apply 2017 state tax refund to 2018 state tax, you would not receive refund amount, it will sit in state account. Does that lower 2018 FED taxable income?

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iceport
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Re: What will you do with your tax refund?

Post by iceport » Sat Mar 03, 2018 6:09 pm

Pay for a Roth conversion. :)
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HIinvestor
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Re: What will you do with your tax refund?

Post by HIinvestor » Sat Mar 03, 2018 6:12 pm

We always apply ours toward estimated taxes so never receive a penny in cash or our accounts. Most times the tax is pretty close to what we’ve paid in estimated taxes but sometimes it’s pretty far off due to fluctuating income and dividends.

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