New Hampshire State Ranking

[tis]

Originally Posted by MAXUM

They also don't get that while the tax deduction on property tax is now capped, other incentives such as the increase in the standard deduction for MOST people actually works out way better.

I know. People don't understand. They really don't even understand how much more they would have to spend if they could keep more of their own. We always said they should go to one window and pick up their check and go to the next window and pay their taxes. Then they would really see what they pay.

[Rusty]

Originally Posted by tis

I know. People don't understand. They really don't even understand how much more they would have to spend if they could keep more of their own. We always said they should go to one window and pick up their check and go to the next window and pay their taxes. Then they would really see what they pay.

IMO getting a tax refund is the biggest waste of money that you will ever get.
You let the government use your money interest free just because you want a big refund..crazy.

[joey2665]

Originally Posted by Rusty

IMO getting a tax refund is the biggest waste of money that you will ever get.

You let the government use your money interest free just because you want a big refund..crazy.

It’s really not crazy at all. You not talking about 10’s of thousands of dollars and with today’s interest rates you are losing an extremely minimal amount of interest especially when you consider it is amortized over every paycheck. Most do not have the disciple to save the 25-100 per week extra they are receiving in each paycheck and also do not want to risk owing 4/15. Many of my clients use it as a forced savings and when they receive their refunds they go on vacation, pay credit card bills or improve their homes.


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[Rusty]

Originally Posted by joey2665

It’s really not crazy at all. You not talking about 10’s of thousands of dollars and with today’s interest rates you are losing an extremely minimal amount of interest especially when you consider it is amortized over every paycheck. Most do not have the disciple to save the 25-100 per week extra they are receiving in each paycheck and also do not want to risk owing 4/15. Many of my clients use it as a forced savings and when they receive their refunds they go on vacation, pay credit card bills or improve their homes.


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Spend, spend, spend! A good accountant would figure out how much taxes should come out each pay period so that at the end of the year $000 would be coming back, and then reccomend that the extra money be automatically put in a 401K for their future retirement.
This is what I did when the 401K first came out..but HEY, to each their own.

[joey2665]

Originally Posted by Rusty

Spend, spend, spend! A good accountant would figure out how much taxes should come out each pay period so that at the end of the year $000 would be coming back, and then reccomend that the extra money be automatically put in a 401K for their future retirement.

This is what I did when the 401K first came out..but HEY, to each their own.

Thanks for you advise. It will be Very valuable in my 30 year practice. I NEVER said it’s what I recommend it’s what my clients want and this is after recommending all retirement plans are maxed out. At the end of the day I give advice and my clients make there own decisions I cannot make it for them.

But I guess you are a better CPA than I am.


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[Rusty]

Originally Posted by joey2665

Thanks for you advise. It will be Very valuable in my 30 year practice. I NEVER said it’s what I recommend it’s what my clients want and this is after recommending all retirement plans are maxed out. At the end of the day I give advice and my clients make there own decisions I cannot make it for them.

But I guess you are a better CPA than I am.


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You are welcome, anytime I can educate people it makes my day.

[joey2665]

Originally Posted by Rusty

You are welcome, anytime I can educate people it makes my day.

I can pay a nickel for your education you are giving me and I would be overpaying.


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[tis]

Originally Posted by joey2665

It’s really not crazy at all. You not talking about 10’s of thousands of dollars and with today’s interest rates you are losing an extremely minimal amount of interest especially when you consider it is amortized over every paycheck. Most do not have the disciple to save the 25-100 per week extra they are receiving in each paycheck and also do not want to risk owing 4/15. Many of my clients use it as a forced savings and when they receive their refunds they go on vacation, pay credit card bills or improve their homes.


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It's not crazy, I agree with Rusty, too. So many people want to make sure they get money back when April comes. Yes, some because they never save and others because they feel like they are getting a gift of money to spend. But it is hard for a good accountant or anybody to figure out how much somebody is going to owe or get back because most people don't have just a simple paycheck. If you did only have that, a single person claiming one exemption should be just about right. ( I am just agreeing with you Joey.)

[Outdoorsman]

Originally Posted by Rusty

IMO getting a tax refund is the biggest waste of money that you will ever get.
You let the government use your money interest free just because you want a big refund..crazy.

Exactly! I have never understood why anyone wants a big refund. Personally I chose to pay in each year so my earnings can work for ME. The feds are not entitled to my money until April 15th(ish), I will hold it in an interest bearing account until then.

[joey2665]

Originally Posted by Outdoorsman

Exactly! I have never understood why anyone wants a big refund. Personally I chose to pay in each year so my earnings can work for ME. The feds are not entitled to my money until April 15th(ish), I will hold it in an interest bearing account until then.

That is not entirely true. They are entitled to have their money equally over the course of the year. If you owe too much on 4/15 you will be assessed a late payment penalty that is much more than the interest you are earning holding onto the funds.


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[Outdoorsman]

Originally Posted by joey2665

That is not entirely true. They are entitled to have their money equally over the course of the year. If you owe too much on 4/15 you will be assessed a late payment penalty that is much more than the interest you are earning holding onto the funds.


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Understood, they are entitled to have the feds hold their money. As I said, "I personally choose to"....

Your earlier post suggested people may be using the IRS as a savings account to pay off credit cards (often 18+% APR) once they get their refund. An extra $50-$100/wk could easily eliminate the perceived need for a credit card all together. This is what is mind boggling to me.

To each their own.

[joey2665]

Originally Posted by Outdoorsman

Understood, they are entitled to have the feds hold their money. As I said, "I personally choose to"....



Your earlier post suggested people may be using the IRS as a savings account to pay off credit cards (often 18+% APR) once they get their refund. An extra $50-$100/wk could easily eliminate the perceived need for a credit card all together. This is what is mind boggling to me.



To each their own.

Exactly. I was stating the position of some of my clients not my advice or opinion. For the majority of my clients the use their refunds for extra luxuries like vacations and home improvements.


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[Rusty]

This article explains why people should not be getting a big refund and I feel the same way:

"Here’s what you could be doing with your money if you had it for that year. Let’s assume you had $2,800, around the amount of the average refund.

1. You could save for retirement. When you let the government sit on nearly $3,000 for up to 12 months, you’re giving up a huge opportunity for savings. What if, instead of waiting for the IRS to refund you your overpayments each spring, you bumped up your 401(k) contributions by a percentage point or two (or more)? Over several decades of your working career, that change could earn you a more comfortable existence in retirement. “There are ups and downs in the market,” says Jude Coard, a tax partner with Berdon LLP in New York City, “but if you’re a long-term investor and you don’t put that money in until you get your refund, you’re basically losing a year’s worth of appreciation on it.”

2. You could have an emergency fund. That $2,800 is no small chunk of change. If you had an unexpected car expense or medical bill, you’d probably be really happy you had it. Emergency funds don’t spring up overnight — you have to put money aside, little by little. If you don’t have one, an extra $233 a month would help start to fill yours out. (Your goal is to have enough funds to tide you over for six months worth of household expenses.)

3. You could pay down debt. As mentioned, a refund of $2,800 is an extra $233 a month in greenbacks you could have had in your pocket, which you could have used to pay off debt or to have kept yourself from getting into debt. About half of U.S. households report carrying a credit card balance. “You could dedicate that extra money to paying down their balances, which could save you as much as 20% on that money,” Coard says. Even if you’re not paying that high of an interest rate on your plastic, the average credit card charges 13% to 15% in interest, so keeping your balance low (or nonexistent) is a good idea."

https://learnvest.com/article/got-a-...-dont-want-one