Thread: What will you spend your Tax Return on?

So its about that time that we're all scrambling to do our taxes, and the lucky ones of us will get a nice return back from Uncle Sam.

What do you plan on spending your tax return on?

I think I'm going to finally buy a pasted paddle and strop from Tony Miller, along with whatever tools I need to begin restoring the eBay straights I've acquired. Any remaining money will be put towards installing a walk in shower in my bathroom to replace the cheapo tub/shower thats in there now.



Any ideas if Uncle Sam was a straight razor shaver? haha!

Originally Posted by bwknight

So its about that time that we're all scrambling to do our taxes, and the lucky ones of us will get a nice return back from Uncle Sam.

What do you plan on spending your tax return on?

I think I'm going to finally buy a pasted paddle and strop from Tony Miller, along with whatever tools I need to begin restoring the eBay straights I've acquired. Any remaining money will be put towards installing a walk in shower in my bathroom to replace the cheapo tub/shower thats in there now.



Any ideas if Uncle Sam was a straight razor shaver? haha!

Sorry to burst your bubble, and I understand the thrill of a refund (kinda like an extra bonus) but I plan out my taxes so that I pay in a couple hundred dollars at tax time...getting a refund is like lending the gov't your money for up to 15 months! Have fun spending, but maybe invest in a tax program and plan out for 2007 so you're not over-withheld on your pay this year!

Good Luck,

Bob

Originally Posted by bikeguy1

Sorry to burst your bubble, and I understand the thrill of a refund (kinda like an extra bonus) but I plan out my taxes so that I pay in a couple hundred dollars at tax time...getting a refund is like lending the gov't your money for up to 15 months! Have fun spending, but maybe invest in a tax program and plan out for 2007 so you're not over-withheld on your pay this year!

Good Luck,

Bob

Now Bob, this is no time to be sensible.

Justin

Who gets a refund?? :shrug:

Well, I don't know how it works in the US but I get a tax refund because of work-related expenses throughout the year (July - July in Aus) that I claim at tax time - nothing I can do about it in terms of witholding money because I'm a PAYG through my employer....

But I always put any return on my Mortgage (yes, with a capital M!) My wife and I are DINKUM Aussies - Double Income No Kids Unbeleeeeeivable Mortgage

James.

Originally Posted by bikeguy1

Sorry to burst your bubble, and I understand the thrill of a refund (kinda like an extra bonus) but I plan out my taxes so that I pay in a couple hundred dollars at tax time...getting a refund is like lending the gov't your money for up to 15 months! Have fun spending, but maybe invest in a tax program and plan out for 2007 so you're not over-withheld on your pay this year!

Good Luck,

Bob

You have a very valid point, but with a new townhouse purchase, interest accrued on my mortgage that I don't/didn't know how to plan for with tax withholdings. I do plan on doing this for the 2007 tax year though.

I'd much rather have a refund than have to fork over several hundred to the Tax Man though.

My wife has not told me what she is going to spend it on.

Seriously though, we are working on the house. New paint for the inside and on my vacation I get to, (not have to) but get to, put down some new floors.

I have a feeling that I will get to rebuild the kitchen very soon.

Originally Posted by bwknight

You have a very valid point, but with a new townhouse purchase, interest accrued on my mortgage that I don't/didn't know how to plan for with tax withholdings. I do plan on doing this for the 2007 tax year though.

I'd much rather have a refund than have to fork over several hundred to the Tax Man though.

You obviously had an extra-ordinary year...congrats on all of the life events, buying real estate, etc. Yes, in those years, it's more difficult to plan out, and I see your point about not wanting to pay at tax time.

So, now "Bob the practical" offers a tidbit (dodging rotten tomatoes here): Take half the refund and put it toward a mortgage pay-down...I used every bit of extra I could muster when I bought my first house, and had it paid off in 12 years.

And in a few years, consider this: rather than planning to the refund, plan to pay in about $500-1000 at tax time; trickle $100/month into a tax-free bond fund that earns about 7-8%. At the end of the year, you've accrued $100 in earnings, plus no tax on those earnings, so it's the equivalent of $130, which is a brand new TI straight....and, you've got the $1000 to pay the IRS, plus a fancy new razor, rather than the IRS having that same $1000. No cap gains, no other tax implications...downside? Less-than a DJIA return, but steady & solid earnings.

Don't mean to seem like a spoilsport, but the sooner you orient yorself this way, the wealthier you'll be by the time you hit 50...and, you'll have even more toys than you would've doing it the other way!

Stay well, and congrats again on the townhouse, etc!

Bob

What refund