Anyone Spending Their Tax Return Foolishly?

[Jims5543]

I got $150 back, did not qualify for stimulus. My CPA estimates my taxes like a savage.

I did dump a lot into the stock market when it went below 20K does that count?

[Bill Douglas]

Originally Posted by Jims5543

I did dump a lot into the stock market when it went below 20K does that count?

I don't know what you paid, but I'm definitely in the foolish spending category

[sammyg2]

Originally Posted by KC911

I have some of Sammy's tax $ as a stimulus check...

I was gonna give it all to Pelosi, but Trump keeps sending me requests for money..... decisions, decisions, decisions

Yer welcome.
I might get a tax return next year.
last few years I went single and zero and still hadta send em a check come April.

[GH85Carrera]

Originally Posted by cabmando

Haven't done estimates for several years. I figure I can make more with my money than the interest costs for not filing quarterly. Plus, they don't give me interest on the money they'd send back if I overpay.

We have a savings account just for the day when we have to put a new engine on our Cessna 182. We take a portion of the profits from each project we fly and add it to that savings account. Right now it pays a whopping .150% The interest is basically nothing. They don't have any bank charges at least.

The engine will likely cost us 25 to 30 grand. The money has to be there and liquid for any repairs. We might put it in the stock market, but with the current volatility of the market that is a long term bet, and not a place to put money we might need now.

Our plans are to get another year or more from our current engine, but that is up to the engine, and the FAA requirements.

[sammyg2]

Yer gettin ripped, I'm getting 6/10% on my savings account

[GH85Carrera]

My credit union pays me 1.26% on my checking account. Unfortunately for a business, ya gotta use a bank, no credit unions allowed.

[sammyg2]

You win

[masraum]

I work hard to try to keep my taxes to where the end of the year and I'll be somewhere between break-even and getting back $500. Sometimes we put a little extra in an IRA to work that out, so I still have to pay, but at least I'm paying myself.

[wdfifteen]

Originally Posted by GH85Carrera

My credit union pays me 1.26% on my checking account. Unfortunately for a business, ya gotta use a bank, no credit unions allowed.

Our local bank offers a checking account through Kasasa (https://www.kasasa.com).
The account pays 3% on balances up to $25k. To get the 3% you have to 1. use online banking 2. sign up for emailed statements 3. use their debit card 12 times a month. I don't know what the difference is between signing up for online banking and getting statements via email. Functionally they are the same, so there are really only 2 requirements.
We have 3 accounts, one for my trust, one for me, and one for MrsWD. Juggling the debit cards so we use each one 12 times is a bit of effort, but I don't know where else you can get 3% on a demand deposit.

[Bill Douglas]

I'm more of an investor (as it turns out) than a day trader. Sure I'm about 9% down, but I'm going to be rolling in money in a year or two.

[Jims5543]

Originally Posted by Bill Douglas

I don't know what you paid, but I'm definitely in the foolish spending category

I dumped into my diversified retirement account. I felt pumping a bunch in when it was down would pay off in the long haul.

I wish I had the balls my friend has, he took 100K that he had to take a chance with and spread it across a bunch of airline and cruise ship stock. He is up 40% on them.

[Por_sha911]

Originally Posted by MBAtarga

What is a tax return?

Money that the IRS takes from most working Americans and then is gracious to hold it for you without paying you any interest. Eventually, the IRS gives it back the following year because they took too much. The person receiving their money back are then supposed to act like it is a gift rather than money they worked hard to earn. Since it is a gift, the recipient feels an overwhelming urge to celebrate with a large expenditure.

[RWebb]

The persons receiving their money back are then supposed to reduce their withholding next year, and plan better.

[Por_sha911]

Originally Posted by RWebb

The persons receiving their money back are then supposed to reduce their withholding next year, and plan better.

That is what I did decades ago. I still get a refund but much smaller that what I used to.

Much to my surprise, when I try to explain this to people they say they want to get a bigger refund. I guess it boils down to self control. Some folks will spend whatever is in the account.

[dmcummins]

I had to send the irs more. But I’m also planning on buying a UST projector. I haven’t decided which one yet, I’m thinking 120” screen.

I just have to finish working on the house, and boat.