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Old 03-27-2015, 10:25 AM
 
19,045 posts, read 25,130,150 times
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Quote:
Originally Posted by orangenj View Post
I know about taxes so yes, my post doesn't apply to someone who is retired or has to make estimated payments due to being self-employed. I'm more talking about people who claim single with 0 exemptions for withholding purposes, then are due $1,000+ refunds.
Like you, I can never figure out those folks who have so much extra withholding taken out of their paychecks that they wind up with refunds of $5k to $6 every year.

Why would somebody intentionally give the government an interest-free loan every year when that money could have been invested and gotten a decent return for that person? When I have asked that question of people, the answer that I always seem to have gotten is something along the lines of...I fear having to pay the IRS.

IMHO, that response indicates somebody who is likely living beyond his/her means or has no self-discipline when it comes to personal finances, and who has no reserve fund to draw upon for a possible IRS payment in April. So, instead, they resort to "forced discipline" by reducing their take-home pay every month, eliminating possible investment gains, and instead of reaping some gains on that money all year, they give the government an interest-free loan for 12 months.

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Old 03-27-2015, 11:13 AM
 
414 posts, read 292,965 times
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Quote:
Originally Posted by Retriever View Post
Like you, I can never figure out those folks who have so much extra withholding taken out of their paychecks that they wind up with refunds of $5k to $6 every year.

Why would somebody intentionally give the government an interest-free loan every year when that money could have been invested and gotten a decent return for that person? When I have asked that question of people, the answer that I always seem to have gotten is something along the lines of...I fear having to pay the IRS.

IMHO, that response indicates somebody who is likely living beyond his/her means or has no self-discipline when it comes to personal finances, and who has no reserve fund to draw upon for a possible IRS payment in April. So, instead, they resort to "forced discipline" by reducing their take-home pay every month, eliminating possible investment gains, and instead of reaping some gains on that money all year, they give the government an interest-free loan for 12 months.

There is nothing wrong with your point, but the extra cash is negligible when spread out over the year. On a $1000 refund amount, that comes out to about $80 per month, or thereabouts. Short of lucking out with a fluke stock pick, you'll get next to zero in the bank, and very little in a fund (or even lose it after down week). Unless you use the Clinton financial advisor who can get you a 100-fold gain, but most people don't have the guy in their Rolodex.
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Old 03-27-2015, 02:07 PM
 
19,045 posts, read 25,130,150 times
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Quote:
Originally Posted by Orion99 View Post
There is nothing wrong with your point, but the extra cash is negligible when spread out over the year. On a $1000 refund amount, that comes out to about $80 per month, or thereabouts.
I'm really talking about the people who consistently get $5k, $6k--or even more--refunded to them after filing their tax returns.
If you don't think that investing that amount of money wisely (especially with reinvestment of dividends and capital gains), is capable of providing good returns, then perhaps you do need a better financial advisor!

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Old 03-27-2015, 04:41 PM
 
Location: NJ
12,283 posts, read 35,587,981 times
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Quote:
Originally Posted by Retriever View Post
Like you, I can never figure out those folks who have so much extra withholding taken out of their paychecks that they wind up with refunds of $5k to $6 every year.

Why would somebody intentionally give the government an interest-free loan every year when that money could have been invested and gotten a decent return for that person? When I have asked that question of people, the answer that I always seem to have gotten is something along the lines of...I fear having to pay the IRS.

IMHO, that response indicates somebody who is likely living beyond his/her means or has no self-discipline when it comes to personal finances, and who has no reserve fund to draw upon for a possible IRS payment in April. So, instead, they resort to "forced discipline" by reducing their take-home pay every month, eliminating possible investment gains, and instead of reaping some gains on that money all year, they give the government an interest-free loan for 12 months.

We got over a $10K refund one year...I can't for the life of me remember why (and it's hasn't happened since). We certainly don't live paycheck to paycheck nor live beyond our means. We really don't need the money we get refunded, otherwise we'd be changing our withholdings. Shrug. We won't change our withholdings now because our deductions are going down every year as we pay off the mortgage and our refunds are less and less.

I have to admit though, I love Feb/March - tax refund and bonus! It pays for a nice vacation and a chunk of my kids' college. $$$$$$
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Old 03-28-2015, 08:14 AM
 
Location: NNJ
15,024 posts, read 9,990,677 times
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Quote:
Originally Posted by orangenj View Post
I never understand why some people are in such a tearing hurry to get their income tax refund.
Generally my refund is fairly small... I don't think much about it. Generally between $1-2.5k fed and state combined.

The previous year I accrued $10k in medical expenses on a credit card and I've been working on paying off. Just so happen that the final balance this past month is just about the same as my refund this year. So it was earmarked as my last payment... I was a bit excited.

Zero credit card debt at this time. woohoo!



I surmise there are people out there that are not as disciplined and use this as a method of forced saving.... makes them feel like they are getting a bonus at the end of the year. I go a $14k refund once... household income went up drastically (my salary plus wife returning to work after 1st child). I forgot to adjust my withholdings...

Last edited by usayit; 03-28-2015 at 08:26 AM..
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Old 04-25-2015, 09:22 AM
 
1 posts, read 821 times
Reputation: 10
my refund check has my name spelled wrong my bank can't cash where do I call ?
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Old 04-25-2015, 09:26 AM
 
Location: New Jersey/Florida
5,816 posts, read 12,576,249 times
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Quote:
Originally Posted by joseph shallonis View Post
my refund check has my name spelled wrong my bank can't cash where do I call ?
Ghostbusters
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Old 08-20-2015, 05:10 PM
 
4,061 posts, read 4,103,678 times
Reputation: 2026
Sorry to revive this thread.

Is anyone still waiting for the refund? This is the first year I am getting a refund. It is way over 12 weeks since I sent in the additional documents they requested.

On a related incident: I am trying to get a refund from my town for recreation activity I cannot attend and I was told by the rec center that it takes 8 weeks just to get the town finance dept to send out a refund form. Yes, 8 weeks to get the form. Who know how long it will takes to get the refund.

Is this normal in NJ?
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Old 08-20-2015, 08:00 PM
 
10,219 posts, read 19,105,710 times
Reputation: 10880
Quote:
Originally Posted by Retriever View Post
Why would somebody intentionally give the government an interest-free loan every year when that money could have been invested and gotten a decent return for that person?
I'd prefer not to but variable compensation (especially equity) tends to mess up the formulas they use; if I aimed for zero I could be under enough that I'd have to pay a penalty.
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Old 05-10-2017, 01:32 PM
 
1 posts, read 360 times
Reputation: 10
hi so im getting really pissed off with my state return because i filed back in february and havent received my state yet i got my federal but not state and i called them but cant find the number i called now to speak to someone not a damn machine and they told me i needed to send them some different documentation cause i claimed my daughter now i havent heard anything since so im wanting to know if there is someone or someplace i can call to complain about this scumbag irs cause im not gonna sit here like an idiot and wait forever so if anyone can help me that would be greatly appreciated and to agree with that one post i cant stand our scumbag governor either he probably did spend our money on donut runs and shoving big macs and whoppers in his mouth lmao
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