14 answers

Income Tax Refund Question

A previous question got me thinking...
Seems like some people think that by tweaking their exemptions one way, they can be "lucky" enough to get "one HECK of a refund" after they file their taxes.
Is that wise?
Would you rather break even at year end?
Why or why not?

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I prefer breaking even. I save the money myself rather than the govt saving it for me. I would rather spend my money throughout the year rather than them taking it and me possibly NOT seeing it at refund time.... it happens :) I don't trust the feds much.

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I prefer breaking even. I save the money myself rather than the govt saving it for me. I would rather spend my money throughout the year rather than them taking it and me possibly NOT seeing it at refund time.... it happens :) I don't trust the feds much.

5 moms found this helpful

I'd rather break even or get just a little bit back. Doesn't make sense to give all that money that belongs to you if you are not going to receive interest on it while it is in their possession.

3 moms found this helpful

We claim more dependents than we should (on the W4) so that they keep less money.. and we still usually get a large refund. But I'd rather get a large refund than try to work the numbers out exactly right. Why? Because EVERY year we have to worry about the AMT. We are SOOO close to being hit with it every year... and we never know until after the taxes are prepared if we will get hit with it or not. And with all the mid-year tax "rebates" and what not that the politicians play around with... who knows how they will turn out each year. Every year we qualify for a little less of the child credit than the standard $1,000 each... so we just really never know. I'd rather get a check than have to come up with extra cash in the first months of the year...

3 moms found this helpful

When you say tweaking it sounds bad!!! We too have had to spend a few years learning how to be good savers and used our Tax Returns to help us do that. It was easier for us to have lots taken out of our paychecks and then get a large portion back to pay off debts. Now that we have gotten good at saving we will do the opposite and get larger paychecks and smaller tax returns.

3 moms found this helpful

We use our "tweaks" to make it that we get a big refund so it's like a savings account for us. We pay a lot more in taxes every paycheck, but get a refund and it's good for us b/c we are terrible savers!

3 moms found this helpful

I'd rather get a refund than owe, so we try to break even, but dont mind if we end up getting a refund instead.

2 moms found this helpful

It depends on how tight the budget it. Why wait for a 3000 dollar refund when 250.00 extra a month could be a livesaver? I also don't like having uncle sam keep my money interest free when it could be earning interest somewhere else.

On the flip side, if someone has an overspending hubby like I do, letting uncle keep it gives me a chunk to put down on bills before he gets his hands on it!

I am on the fence depending on the situation for this one.

2 moms found this helpful

With today's rate of return what is truly the difference between a bank giving you .01% interest or the federal government giving you 0%.

There might be more of a debate in a different economic climate.

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