We were happy to discover a couple of deposits into our ING savings the past couple of weeks. We received both our Federal and State/Local tax refunds direct deposited. Our goal of course would is to be tax neutral come tax return time (why give the government a free loan if we don’t have to?) but our refund is actually a lot less than it was last year. After last year’s return I had my tax withholding adjusted so I’d have more money in my paycheck and we’d have less of a refund. Still, it’s nice to see our savings go up.
So what are we doing with our windfall?
Well, it’s already in savings so it will start earning interest. After that we don’t have a specific plan to spend the money. I guess we could say that some of the money will go to help pay for some of the things we’ve been doing around the house to help it sell. Some could also be going to help pay for the real estate broker that’s selling it. But all of those costs would have happened anyway.
What will you be doing with your tax refund?
I guess I should really ask if you are getting one first. If you’re close to not owing or getting anything back then that’s great actually. But I’d like to hear what you plan to do with your refund if you are getting one. In fact, I’d like to help you do your taxes…
I’m giving away two copies of H&R Block TaxCut 2008 Premium Federal
.
My friends at H&R Block have offered the copies to give away to my readers. There are two ways to win.
- One copy will go to a subscriber of Free From Broke. Email me the secret phrase from my RSS (you can subscribe to Free From Broke here) and that will be one entry (one RSS entry per person).
- The other copy will go to someone who leaves a comment below telling me what you will do with your refund (you can also say if you don’t expect a return to enter). One comment per person please.
I need a valid email in order to get in touch with you (I won’t give it away to a 3rd party ever). If your email isn’t valid I’ll pick another email from the entries. The winners will have to supply their name and address so the software can be mailed to you. Valid entries are determined by me (I will disregard spam). Contest is open between now and midnight March 15th, 2009 EST.
I almost forgot! If you have questions about your taxes you should check out H&R Block’s Digits for tax information and questions. It’s free and there’s a community full of information!
Good luck and let me know what you are doing with your refund!
Related Posts Related Websites
- Tax Free Retirement Investing with Your Health Savings Account
- TaxCut 2009 - Upto 47% OFF Discount Coupons
- How To Make The Most Of A Windfall
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{ 13 comments… read them below or add one }
I think I did pretty good at getting to tax neutral my refund this year is the lowest it has ever been. My state is less than a hundred!
Having said that, I kind of miss the big checks
I guess I just have to adjust my way of thinking about it.
Oh, since our refund is tiny this year and can’t go on a shopping spree anyway, it’s going straight to savings.
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We haven’t finished our taxes yet. If we get a refund, we are going to put the money toward new patio doors and a front door for our house. A lot of air leaks through a gap in our front door frame, and we want to get a better-fitting door to help cut down on energy costs. We are also hoping that better patio doors will make our bedroom less frigid next winter!
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My return will likely go directly into my savings account. Of course I may have to send some of it to the state as I live in one state and work for a company in another state. The resident / non-resident thing may cause me some issue.
IF I do end up spending some of it then it will be on a new vacuum for my girlfriend (she has been coveting a Dyson
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Unfortunately, I’m suspecting that we will have to pay but if we were getting a refund, it would go directly towards a credit card.
We are finally getting one. Yay mortgage interest deduction! At any rate, ours has come, and is spent, on dental work for my husband.
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My refund goes directly into retirement savings (RRSP in Canada) – and this gets me a refund next year!
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Goes straight into the house saavings account which is used for house repairs as they arise.
My refund is under $100 this year. I am putting 10% into savings, take 10% for fun (maybe buy a lip gloss or a new shirt) and the rest is going to be a snowflake payment to credit card debt.
I think it’s great that you’ve pointed out the financial value of being tax neutral. Most people really look forward to getting their tax returns each year (and that’s certainly a nice feeling) but it’s a lot better if you can keep that money in your bank all year long so it can earn you a bit of interest. I’m not getting anything back this year but if I did, I’d probably take the same approach as you and not spend it for awhile unless it was on something that was going to ultimately earn me more money.
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Mine is going into my emergency fund.
Thanks
Well, I thought we were going to be tax neutral this year (or close to it), but we are definitely not!
Last year we got $50 from the feds, and $800 from state. This year it was nearly double! The only thing I can attribute it to is a change in housing costs (and associated property and school tax, and mortgage insurance deductions) and NYS creating an empire child tax credit which gave us an additional $300!
I’m not complaining, especially in one of the highest taxed states in the country, but I hadn’t taken it into account.
Anyway, as for what we’re doing – it’s going straight into the emergency savings account, which took a hit last year when we bought our new house. I know it’s not sexy, but these just aren’t sexy times.
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I haven’t filed yet but don’t expect too big of a return. I’ll probably put about half in savings and use the rest for a concert ticket or put it towards a trip somewhere.
I am buying a one-way plane ticket to Hilo, HI(it’s on the Big Island of Hawaii). I have never been there before, but I plan on living off the grid, helping out organic farmers for room and board in return. I am very excited to be planning such an adventure.