What Are You Guys Going To Buy With Your Tax Return?

slow&rusty · 02-11-2007, 04:41 AM

Well what toys and goodies are you guys thinking about getting with your tax return?

I know I am going to keep trucking forward with my engine rebuild on my Datsun Z, boy its adding up. The rest I am going to put towards the house and updating it.

Regards - Yasin

cool_chick · 02-11-2007, 04:51 AM

Throw it in savings, like every year.

slakjaw · 02-11-2007, 05:19 AM

Something for my Porsche this year. P-P will see an order from me.

slakjaw · 02-11-2007, 05:20 AM

Or a twm throttle body with a megasquirt, that would be cool too.

Big Ed · 02-11-2007, 05:22 AM

I'm going to send in my $13,000 due.

dheinz · 02-11-2007, 05:25 AM

What is a tax return?
I'm self employed.

wreckersteve · 02-11-2007, 05:31 AM

New bathrooms. How fun.

Big Ed · 02-11-2007, 05:31 AM

Eddie,

See my answer above yours...a tax return is that form that you send in with your check.

The original poster meant to say tax REFUND...but we self-employed types know nothing of that sort.

Dantilla · 02-11-2007, 05:35 AM

What am I going to "buy"?

Like the other self-employed guys above, I'm going to write a check to the government, and "buy" the ability to stay out of jail for another year.

on-ramp · 02-11-2007, 05:48 AM

Did you know that your tax return money is income and is taxed for the next year?

Aurel · Aurel's Garage

Quote:

Originally posted by on-ramp
Did you know that your tax return money is income and is taxed for the next year?

No, and that does not seem right. It means that not only the govt. would be earning interest on your overpaid taxes of the present year, and then tax you again for the next year on that same money they already gave back to you.
When I fill my taxes, I only get taxed on the state refund, not the federal.

This year, with a new baby and being married, I am getting $12,484 back. I am having two rotten trees taken down in my yard, then putting up a new fence, then...a lot more work to do on the house.

Aurel

strupgolf · 02-11-2007, 06:39 AM

Hey Aurel, you need help. Dont have them take out that much during the year. Getting 12 big ones back is great, but I'd rather have 12 little ones spaced over 12 months to use as I see fit. Anyway, whats a tax refund. I havent seen one in a long time. But I dont mind because I have the money in my account, not Uncl Sams.

VincentVega · 02-11-2007, 06:42 AM

Tax return, what's that???

Nathans_Dad · Nathans_Dad's Garage

Quote:

Originally posted by Aurel
No, and that does not seem right. It means that not only the govt. would be earning interest on your overpaid taxes of the present year, and then tax you again for the next year on that same money they already gave back to you.

You got it. That is why you should adjust your withholding to make sure you get zero refund each year or owe a little. Everyone gets excited about a tax refund when in reality all you have done is give the government an interest free loan for a year...

This year I am getting $7k back but that is because my wife quit working 4 months into the year so we lost a big chunk of income.

cool_chick · 02-11-2007, 06:50 AM

Quote:

Originally posted by Nathans_Dad
You got it. That is why you should adjust your withholding to make sure you get zero refund each year or owe a little. Everyone gets excited about a tax refund when in reality all you have done is give the government an interest free loan for a year...

This year I am getting $7k back but that is because my wife quit working 4 months into the year so we lost a big chunk of income.

That's what I do (not completely zero though, I like to get a little back, it's a psychological thing I guess). I would rather earn interest than the government.

Some people like the windfall though. Maybe they struggle to save so this is a way for them.....

Bill Verburg · Bill Verburg's Garage

What's a tax return?

on-ramp · 07:08 AM

A refund is merely money you OVERPAID in taxes during the year, money you could have been earning interest on.

it's always better to have a tax bill on April 15th (up to a point) than to get a refund.

Aurel, you're right. state tax refund is only taxed... it's a government-made scam, kinda like Social Security.

Porsche-O-Phile · Porsche-O-Phile's Garage

Pays for this year's government-backed white-collar exotortion scam (insurance policy). Usually there's about $100 or $200 left after that for rainy day savings.

VaSteve · 02-11-2007, 07:22 AM

Quote:

Originally posted by Aurel

When I fill my taxes, I only get taxed on the state refund, not the federal.

Last year's state refund is this year's income. Why? Because your state withholding was a federal deduction last year. "legitimate" tax paid to the state (the total w/h less the refund) is deductible.

on2wheels52 · on2wheels52's Garage

This is the only time of year most of my customers have any money. Then they blow a chunk of it doing 'rapid refund' (and paying me off).
Jim