(January 11, 2019 at 1:32 am)Tiberius Wrote:(January 6, 2019 at 7:28 pm)onlinebiker Wrote: If you' re worried about your tax refund - and ESPECIALLY if it' s because you are low income - you are doing it wrong.
You need to declare more exemptions - so you have to pay in by April 15th.
Do the math, dummy.
If you are getting a refund - you are providing the US Government with an interest free loan, for your earning year.
That' s right - that " refund" costs you money.
Better plan --- and financially sound as fuck --- put money aside every month - and collect the interest on it --- then pay in on April 15th......
Or, snivel about what the " convenience " of your forced " savings" of a refund costs you - when the government doesn't come through on time.... Hint - the government doesn't get penalized for late payment...
This all depends on knowing how much you'll make during the year and what deductions you'll take. That's simply not possible for us for a number of reasons. I get quarterly bonuses. I get an annual raise. Shell's income fluctuates from month to month. We bought a house last year. We've paid interest payments that are tax deductible.
When there are a large number of variables its just not feasible to waste time trying to figure out how much we're going to owe in taxes. Of course we try our best to keep our refund low but sometimes life gets in the way.
I thought it was obvious I was speaking of one income, low wage earner. (See first sentence of OP).
The same sort of person that gets the refund as a check - and cashes said check at a check cashing place - paying to do it. The same sort that frequents payday loan stores - and sells their possessions at a pawn shop for gas money.
The ones that can least afford it.
Myself - I used to frequent pawn shops - I got along fabulous with the owner and his boys - and they gave me great deals on stuff that weas too heavy to ship when sold on E-Bay... Sadly - they retired.
