Any plans for this year's tax refund yet...?

[imwjl]

Originally Posted by LAPlayer

Since you posed the question - Let me explain it for you. Retirement, much like working, has an income range. For some retired folks their entire income places them in the poverty range. If their entire income is coming from Social Security, assuming they paid in their required 40 quarters, this amount could be bleak. From AARP, "A single person born in 1968 who has averaged a $50,000 salary, for example, would get $1,410 a month by retiring at 62"

That income equals $16,920 per year. From that taxes, which vary, are paid. Out of that comes their Medicare, if they don't qualify for Medicaid, and other expenses like rent, mortgage...... Many people couldn't or didn't plan for "retirement" which might have come earlier than expected due to medical, downsizing or other factors. Consequently minimal, if any, refund will be expected. U.S, poverty level income for 2024 is $15,060. If one averaged less than the $50,000 that I posted (and many do) their income is even less.

Many of us who have been blessed with better-than-average situations and circumstances sometimes forget those not so blessed.

What a great conversation - another LOL - for the Open Mic area.

For the actual topic, I rarely get refunds and try to manage the estimates well.

For the rest, my Medicare sign is in suspend because my wife had to get some starting date info. Also for the rest, what a strange time. Technically we're at this age better off than much of the country and world but I see and know ways our assets could disappear fast.

For guitars and amps I consider myself long set for life. What to do with money is more about retirement priorities and being late age parents.

[Steve DeRosa]

Originally Posted by imwjl

What a great conversation - another LOL - for the Open Mic area...

I've been thinking the same thing since the very first response...

[David Eastwood]

Originally Posted by rokdog49

There’s no refund in our household. It’s our money to begin with.
Thanks to my wife and her astute management of our money, the government gets the correct percentage of withholding throughout the tax year and not a penny more.
We keep every ounce of income we get, invest it and make interest on it.
It’s pretty simple and I highly recommend it.

That is, of course, the ideal scenario. I’d much prefer to either break even, or owe a small amount, but the effort I’d have to go through to ensure that far outweighs the return.

Everyone’s circumstances vary, of course.

[Mandobart]

Short answer - no. This is not an “extra” windfall to me. It’s money I already earned but the treasury held on to for me (without interest, usually*).

I’ve always attempted to break even (within a couple thousand either way). But for a few years I had to pay more than that, so I adjusted my withholding upwards. Then we bought a plug-in hybrid car and got an extra $4200. So I got too big of a refund (4 figures).

Reduced the extra withholding, but still got what I thought is too much - $7k. I could have had that money earning a pitifully small interest instead of the treasury doing so.

Just got the refund deposited in my account today. It will go to the general domestic tranquility fund. I recently retired so I’m not going crazy spending more with my extra time.

*One year the IRS gave me $42 in interest because my refund was delayed until late in the year.

[rokdog49]

Originally Posted by David Eastwood

That is, of course, the ideal scenario. I’d much prefer to either break even, or owe a small amount, but the effort I’d have to go through to ensure that far outweighs the return.

Everyone’s circumstances vary, of course.

It takes a little planning but it ain’t that hard. Thankfully, I have a born “bean counter” as a spouse. The effort is worth it to us because while we pay our taxes, we aren’t going to let the government use any extra money I worked my whole life for…ain’t gonna happen! No offense intended here, but to us the “refund” concept is misnomer and a myth. YMMV.
Over the almost 50 years of our marriage, she has eliminated our indebtedness as well. We are literally living off our combined social security income with a decent monthly plus side on the budget ledger.
The down side is it affects our credit rating because we don’t play the game the way it was intended to be played. That’s ok, because we don’t have any need for credit. We do have a credit card, but the balance is paid in full every month and on top of that we get our “purchasing rewards” which we take in cash. They love people like us. . We haven’t payed interest on anything for decades.

Are we proud of what we have accomplished…dang right we are.

Fun fact:
Let’s say at the end of the tax year you owe $978 in federal taxes. That’s a $978 interest free loan you got from the feds.

[DBW]

I just got a mint condition 2017 PRS Core McCarty 594. Much less expensive than a new one.

[CASD57]

My plan was to pay the man as quick as possible

[davidd]

Any overpayment is used for the quarterly estimated tax I have to pay. I'm almost 72 and still paying taxes through the nose. Even medicare costs us a fortune each month. No free lunch yet for me and the missus.

Actually I'm planning on dumping the majority of what I've collected through the years.

[Rudy4]

Our quarterlies were pretty close last year. My wife is most likely going to get a new potted plant and I might get a new Capo.

[PassingThru]

This year's refund is covering a used Fishman Loudbox Performer PRO-LBX-300 and a used Martin Custom Shop 000 Cherry Hill guitar. The amp has arrived. The guitar arrives Monday. It will be a good Monday.

[Jeff Scott]

Possibly a Jad Freer Sisma amp.

[Mr. Paul]

This year, Colorado has distributed excess sales tax income via a tax credit, $800 per taxpayer. Yep, we get paid to live here . It's not something you can budget for, as the amount is decided by the legislature late in the tax year.

https://tax.colorado.gov/TABOR

For 2023, that amount took care of an anticipated small state tax obligation and netted us a few $ that are getting sucked into the vortex of a bathroom remodel.

[Jeff Scott]

Originally Posted by Mr. Paul

...getting sucked into the vortex of a bathroom remodel.

[Matthew Sarad]

I bought a Supro 8 string steel.