OT----Income Tax----Just Figuring??

Jiles · Dec 31, 2011

I had a discussion about income tax, with my three sons. Their thought are different from mine in that they like to receive a tax refund.., as do many people--the majority I guess.
Although I am long retired, I felt I was better off to pay as little taxes as possible and end up paying what I owed when fileing tax returns.
My thoughts were---why should I pay too much and let the government use my money INTEREST FREE :!: :?:
Ever wonder why most people receive their returns on a Saturday---gov. can get a couple of extra days interest free use :!:
Of course it's nice to have the refund to spend on what you want, but why not just put a little money into a special account like a Christmas Fund :?: and draw a little interest :!:

PaGlenn · Dec 31, 2011

In my thinking, you are right on the money.

David G · Dec 31, 2011

You are correct, deposit the minimum amount but enough you do not
pay a penalty. The IRS does NOT pay you interest, but will charge
interest if you underpay.

ohiojim · Dec 31, 2011

most people who get a return are useing it as a saveings account because they can't manage there money,..it's about the only way they can buy anything of importance......and then pay big money for a rapid return,....go figure

Gun guru · Dec 31, 2011

The best way to do it is to owe as much to the IRS as possible without a penalty of interest to them. My wife and I both work, I have had to pay over $3000 to those 8astards in past years, and I have had a refund of over $2000 in past years also. I remember 1 year we had to pay $2500 and there was a $90 penalty tacked on to it. I will admit that it is nice to get a check for a few hundred of your own money back.
I have an important question:
If the government just prints money then why do I have to pay taxes? Sounds logical right?

keh · Dec 31, 2011

And then they get a loan in anticipation of a refund at high interest from their tax preparer. It's tough to be poor AND ignorant.

KEH

Allen Goodman · Dec 31, 2011

Just have your kids do the work sheet on the back of the W4. It'll always be 1 more than your dependents. Give the Government as less money as you can. I've figured out many years ago. I figured my total dependent deductions and then figured as single. Took the difference and invested that into mutral funds. Sure I pay the IRS every year, but the interest that I earned out weighes that many fold.

tomNE · Dec 31, 2011

Or use the return money to buy a tax deductable IRA ever year to build up your retirement funds.
IRS lets you deduct the ira donation but gives you until april 15th to purchase the IRA. It's Unbelieveable how much they will donate to your retirement.

Anonymous-0 · Dec 31, 2011

Keep back as much as you can but make sure you pay them 90% by December 1st or you will pay a penalty and have to make quarterly payments.

barnE · Dec 31, 2011

Buuutttt! The Government needs help. Otherwise they would not charge all these taxes. Dave

Matt in Mich · Jan 1, 2012

Not as big a deal now as it used to be. Years ago, the feeling was to keep as much in YOUR pocket and invest to get the interest. At the end of the year, pay the tax with the interest earned throughout the year. With interest rates what they are now, I would just as soon get the refund. Just MHO.

Rick Kr · Jan 1, 2012

I agree with you. I aim for around $1000 return. I could go lower I guess, but it gives me a little buffer if I figure wrong.

Never understood people that liked to get $6000 returns. Thats 500/month you could have in your pocket every month.

Rick

OT----Income Tax----Just Figuring??

Jiles

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PaGlenn

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David G

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ohiojim

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Gun guru

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keh

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Allen Goodman

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tomNE

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Anonymous-0

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barnE

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Matt in Mich

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Rick Kr

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