What to do with your tax return?

From Monday April 16^th to Wednesday April 18^th we will be running a series on what to do with your tax return? What is the best way to get the most out of your tax return?

We will be featuring content that provides helpful hints and advice for what to do with your tax return. If you have any suggestions we would love to hear from you!

If you have any advice to contribute, we would like to start featuring your content Monday morning. Please post your articles to the Money Essential by Sunday so that we may begin featuring on Monday morning.

As always, we appreciate anything that you can contribute. With your help we hope to make this series a success.

Thank you and we look forward to featuring your content!

Comments: 8

Stacey "Yeah, I Said It" H. Apr 13, 2007, 3:56pm UTC

Make sure you DON'T get a tax return for the following year! Adjust your withholding so that you get a minimal amount back, when you get these large refunds, you are in essence, giving the government a 1 yr. interest-free loan! Use the money that would have been withheld and invest in long-term savings plan.

But if you do get a large refund, pay down your installment debt and invest the balance in a money market account or CD.

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Stacey "Yeah, I Said It" H. Apr 13, 2007, 3:57pm UTC

Ooops, I meant refund, not return!

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G. Lamar Wilkie Apr 13, 2007, 5:46pm UTC

You're absolutely correct, Stacey: use the W-4 instructions to calculate how many exemptions will give you the least withholding (and the smallest refund). Interest-free loans to the government is reckless!

I despise the SCAM of withholding anyway, because it hides our true tax burden (and keeps the population from revolting against our spend-happy Congress). Ask 100 people how much tax they paid last year and I'll bet you that at least 80 of them will say "I didn't pay any tax at all... in fact, I got a refund!" It's a smoke-and-mirrors trick that Congress has developed to overtax people and then make everyone happy by refunding the excess. The FairTax is a far superior plan... but that's another group.

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Amy B. Apr 13, 2007, 7:00pm UTC

Regretfully I won't get a refund this year and had to write a large check with my extension. I've since adjusted my withholdings so I don't have to start paying estimated taxes each quarter.

I'm amazed at how many people look forward to a large refund because they don't have any discipline in saving from each paycheck themselves. If that's your situation, see if your employer will let you put part of your paycheck into a second bank account so you can earn interest on your savings instead of giving the government an interest-free loan.

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Ms. Meacham: Money Maven Apr 14, 2007, 2:06am UTC

All good points, Stacey, G. and Amy B.. (I can't help it that I'm amused by the rhyme...fabulous.) Any how, I'll be posting a few things next week for those who will have to wait until next year to engage your wisdom. ; )

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Jessie W. Apr 15, 2007, 1:09am UTC

tee heee, giggle, hohoho, HA HA, HEEEEE HEEEE HEEEE! Tax refund? That's a good one! Boy, you guys are so funny!

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Selene N. Apr 15, 2007, 9:53pm UTC

What do you mean "what to do with your tax return"? File it!

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Susan M. Apr 16, 2007, 8:54am UTC

I never get a tax refund. The PTB get enough of my money as is, why would I let them use even more for free? The more I pay at the end of the year, the better, as long as I keep under the penalty amount.

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What to do with your tax return?

Comments: 8

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