April 14th tax deadline

[Value Buy]

Well, it finally happened.

Just finished the turbotax return........

I always had my (ours) Federal tax with holding be rather large, so we would receive a large refund, to give our family a large check as a forced savings account.

But everyone always said why let the government have it for free when we could have it.......

And since Obama and Congress would just spend it, I thought, why not? 

We adjusted last year.

Getting $67 back.

Problem is, we did not save the $3,000 we usually received.

Looks like we turned ourselves into fiscal irresponsible spenders, just like Washington.

Oh well.

Writing a check for $110 to the state, but usually have to pay them anyway.

What were your results, and if a large refund, what are you doing with it?

[resolution]

I think the key to actually saving the money that would have come from the tax return is to set up an automatic deposit to savings. So if you used to withhold an extra $300 a month for taxes, then when you reduce the withholding, set up an automatic contribution to investments of $300 a month. Or split it out by paycheck, so it ends up being $150 bi-weekly or $75 a week. That is the only way I know to keep it out of the general spending.

I fail at some aspects of YM and we ended up getting around $3k back from the feds and owing $400 to the state. Normally we just put whatever we get back into our savings account and I merge it into our general budget. This year we had to pay $5k for some unexpected foundation work on the house, so I suppose that is where the money went.

[Blonde Granny]

We received $4577.00 back from the Feds and $746 from the state. We way overpaid because I'm so concerned about getting hit with penalties if I under pay on the quarterly payments.

With all the nonsense going on now with theft of refunds, and money taken out to pay for long lost relatives taxes, I'll be darned if I give them excess from now on. A small penalty is worth the price of some safety.

[jkapp]

My best planned year was when I owed the state $52 and the Feds owed me $50 (that was 2011, I believe).  This year was still pretty good: I owed the Feds $72 and the state owed me $107.

[jkapp]

Apr 13, 2014 7:20:45 GMT -5 Blonde Granny said:

We received $4577.00 back from the Feds and $746 from the state. We way overpaid because I'm so concerned about getting hit with penalties if I under pay on the quarterly payments.

With all the nonsense going on now with theft of refunds, and money taken out to pay for long lost relatives taxes, I'll be darned if I give them excess from now on. A small penalty is worth the price of some safety.

Once I saw California handing out IOUs instead of actual checks, that's when I decided not to trust any government with extra money   I've been working to get to a break even point ever since.  It does sometimes take recalculating throughout the year, though, as you mentioned about penalties for underpayment (especially if you receive bonuses or some other type of compensation that can add to AGI).

[Otto the Orange]

The OP's point is EXACTLY why I like receiving a decent return! $4 K this year

flame away

[Blonde Granny]

Apr 13, 2014 9:43:28 GMT -5 jkapp said:

Apr 13, 2014 7:20:45 GMT -5 Blonde Granny said:

We received $4577.00 back from the Feds and $746 from the state. We way overpaid because I'm so concerned about getting hit with penalties if I under pay on the quarterly payments.

With all the nonsense going on now with theft of refunds, and money taken out to pay for long lost relatives taxes, I'll be darned if I give them excess from now on. A small penalty is worth the price of some safety.

Once I saw California handing out IOUs instead of actual checks, that's when I decided not to trust any government with extra money   I've been working to get to a break even point ever since.  It does sometimes take recalculating throughout the year, though, as you mentioned about penalties for underpayment (especially if you receive bonuses or some other type of compensation that can add to AGI).

We're retired and have been for 18 years. SS, VA disability covers our monthly expenses, and our investment income is eventually reinvested. Our tax return is very easy, and our current tax rate is ultra low.

[djAdvocate]

Apr 13, 2014 16:20:37 GMT -5 deminmaine said:

Painful week for us. Flow through profit meant I cut stockholder distribution  checks for 60K last week to cover taxes due this week.

The good news is that 2013 was a good year. The bad news, see the line above. Ouch, even though it was expected.

i owed about half that.  and i still have to figure out where the last $6k is coming from.

[bean29]

Oh Cr@p. I thought it was Due April 15!

I guess it is and extension for me.

(Sarcasm).

It will be an extension either way.

But the good news is I asked for MIL's info a few weeks ago and filed it last week. E-filed the kids federal returns, and Mailed Dd's state last week... and I e-filed DS's State yesterday (He won't be home till Friday to sign it ...thank g*d we can e-file now).

[taz157]

Apr 13, 2014 20:22:27 GMT -5 bean29 said:

Oh Cr@p. I thought it was Due April 15!

I guess it is and extension for me.

(Sarcasm).

It will be an extension either way.

But the good news is I asked for MIL's info a few weeks ago and filed it last week. E-filed the kids federal returns, and Mailed Dd's state last week... and I e-filed DS's State yesterday (He won't be home till Friday to sign it ...thank g*d we can e-file now).

It is due April 15th!

We are filing an extension this year too. I've been busy preparing other people's taxes, DH with health issues, and our house still in disarray from moving that it will not be filed on time this year. I know we are getting a refund so I'm not too worried, but I don't have time to get it done accurately this year. Usually it's not too bad, but we had moving expenses that weren't reimbursed and a bunch of charitable donations due to moving.

[marvholly]

i came up even both Fed & state.
0 withheld
0 owed
0 refund

Of course, I live on soc + a small pension (covers groceries & some wine for 1 person).
May be a bit different next year after I take a RMD from inherited IRA and definatly will in 2016 when I have to take RMD from my own IRA. Then I will do estimated as needed.

[sesfw]

I take a RMD from inherited IRA and definatly will in 2016 when I have to take RMD from my own IRA.

When we take our RMDs we automatically put 1/3 to Fed Taxes immediately and that has worked well.