Tax Refund--How do you use it?
In contemplating tax season (I bought tax software the other day to prepare for the eventual day when I have all my W-2's and Z-3's and whatever else is necessary at hand to file my taxes), I have stumbled upon a question worth polling people about. How should you spend your income tax refund? This question is, of course, predicated upon the assumption you will get a refund. For those of you so rich that you actually have to pay Uncle Sam more than he withheld, well, you just don't have much part in this conversation. But for those who will get something, what do you do with that windfall?
For those of us who have a budget, this is a dilemma. Does it go into the "party" category (or some such comparable column), to be frittered away on frills and toys? Does it go into savings? Should it be spent on needs alone? Or should it be divided up into several different categories?
Personally, I'm a bit torn on this. It's a problem about which I need advice. I mean, it seems too boring to divide this windfall up like a normal paycheck, into categories like "food," "house," "transportation," etc. Moreover, my budget is created on the basis of not expecting anything back from Uncle Sam, so all of those needs are already covered. Should I just give it all away? Now there's a bold thought. Anybody in need of some extra cashola? And why is it that I feel like I've won the lottery when I get tax money back? I mean, whose money is it in the first place?
I'm all about giving to Caesar what is Caesar's, but the fact that I do rejoice at a tax refund tells me a lot about the depths of degradation to which my thinking about this has succumbed. I shouldn't be rejoicing, but angry that I'm finally getting my money back when I am, shouldn't I? I mean, why does Uncle Sam have to withhold money from us before it's due? Withholding should really only be done for people who failed the very basic math it takes to calculate how much money is 10 percent of your income (or whatever tax bracket you are in), or who fail to have the self-control to not spend money that will be owed in taxes. And those who volunteer to have withholding done for simplicity purposes could also do so. But to have the government demand that they take money from you before it's due? Sounds like Communist Korea to me. Sigh.
For those of us who have a budget, this is a dilemma. Does it go into the "party" category (or some such comparable column), to be frittered away on frills and toys? Does it go into savings? Should it be spent on needs alone? Or should it be divided up into several different categories?
Personally, I'm a bit torn on this. It's a problem about which I need advice. I mean, it seems too boring to divide this windfall up like a normal paycheck, into categories like "food," "house," "transportation," etc. Moreover, my budget is created on the basis of not expecting anything back from Uncle Sam, so all of those needs are already covered. Should I just give it all away? Now there's a bold thought. Anybody in need of some extra cashola? And why is it that I feel like I've won the lottery when I get tax money back? I mean, whose money is it in the first place?
I'm all about giving to Caesar what is Caesar's, but the fact that I do rejoice at a tax refund tells me a lot about the depths of degradation to which my thinking about this has succumbed. I shouldn't be rejoicing, but angry that I'm finally getting my money back when I am, shouldn't I? I mean, why does Uncle Sam have to withhold money from us before it's due? Withholding should really only be done for people who failed the very basic math it takes to calculate how much money is 10 percent of your income (or whatever tax bracket you are in), or who fail to have the self-control to not spend money that will be owed in taxes. And those who volunteer to have withholding done for simplicity purposes could also do so. But to have the government demand that they take money from you before it's due? Sounds like Communist Korea to me. Sigh.
posted by redsoxwinthisyear at 10:02 PM
4 Comments:
Well, I can't give any advice because I don't have that delightful problem. Since I'm self-employed (technically), I end up paying Uncle Sam quite a few $$ every year.
But I say you should put it into savings toward something fun or very useful, like a trip or a piece of equipment or furniture. Think of it like a bonus!
Oops, I guess I gave you some advice anyway!
I feel the same way C-Man, why does the gov't take it ahead of time? Because they earn interest on it, the bums. Millions and millions, and more, dollars just sitting there earning interest for the govt. Greed and economics.
As for me, I spend mine on mundane things like medical stuff. and usually a few bucks on a book or dvd :)
I have to say I'm quite a bit like you, in that I don't budget for it, so when I do get it it is like a bonus. I had been thinking about a fun investment like an LCD tv, but now most likely it will go towards a new car. :(
Post a Comment
<< Home