Big tax return-what should I do?!?

[CaCathy13]

It's possible I'm looking to get a big tax return (around $4500), due to some educational credits this year-and amending past years returns. I dunno what I should do....I need input!!

[Lee]

Live a little-forget the debt-have a great vacation!

[d_m_kolb]

Pay your debt. This helps your credit and it might help your stress level. This also will mean more play money later in the year because more bills are paid off.

[CaCathy13]

Well duh, I know all that....but I got the rest of my life to pay my debt!!!!

[cibomatto]

I don't know what kind of debt you have but paying now saves you money later as far as paying interest is concerned..

[slbpsi63]

I agree with Derek!!! Pay off some debt and use those payments that you have freed up to play around with.

[Lee]

Wow-there are sure a lot of serious debt payers here! Still think you should enjoy it now girlfriend! Life is too short. Enjoy!

[Sub-Vibe-R]

If you had a base, I'd tell you get the supercharger, but, unfortunally, you have a GT.

[shenandoah24]

I wish I was getting a big tax return.....I will have to pay I spend so much time in my Vibe, they should let me deduct the interest like a house payment ANyone from the IRS watching this forum????That would be a good idea---deduct the interest on Da Vibe---haha

[BigWill]

Bills first...play later. I get that amount back almost every year, and I fork up on the bills first. Just my thoughts....

[slbpsi63]

quote:I wish I was getting a big tax return.....I will have to pay A good way to avoid paying is to fill out a new w-4 form and in line 6 take an additional $10-$20 per paycheck. If you are paid bi-weekly that can amount to $260-$520. I hope this gives you a good idea.

[Keely]

quote:It's possible I'm looking to get a big tax return (around $4500), due to some educational credits this year-and amending past years returns. I dunno what I should do....I need input!!Speaking as another girl who's been there, done that - pay off the debts. You'll have much more money in the long run, which means you'll be more independent, able to make your own choices, and all the fly boys will be chasing YOU.

[shenandoah24]

Yeah-- that was my next step. I already did the "married-but withhold at the higher single rate" and I put 0 exemptions, but it did not make as big a difference as I had hoped....thanks for the tip!!!!!!!!And I agree with Keely---pay the debt. Trust me, I've been there myself!!!! You'll feel so much better when you do. ANd then you'll have lots of money to play with later!!!!

[Shadow Realm]

The rule of thumb is: debt has interest and sometimes it's very hard to get rid off it. If you pay off your debt, you have all that money that was going out monthly to treat yourself right interest free.

[Stang2Vibe]

How about this. Consolidate your debts into one monthly payment at one low interest rate (rates are really low now) and then you will be saving each month and paying off your debts faster. Then take your tax return and you can blow it on your Vibe! I like it!

[Vibe]

My Dear-----You worked hard for your pay and the refund you get back is yours---to spend anyway you choose. Never mind what people say and really you should not ask fo anybodys opinion-- It is your money so --Do Your Own Thing and Enjoy It. I always use mine as my once a year FUN money. James

[Lee]

I'm with you James! Enjoy it!

[QUIKAG]

I'm a CPA, you should not be getting that big of a refund, you need to fix your withholding amounts, so you don't get that much back from now on. Basically what you did was give the IRS $4500 interest-free to use for a year.I'm a boring guy, I'd pay off some debt, so you can get bigger and better things down the road!!

[KSNeptune]

If you've got 4,500 in debt somewhere, by all means pay it off! No, it won't seem like fun right away. But if you start putting the payment you were making on that debt into a good yield secure CD or savings account, you'll soon have another 4,500 you can spend freely, with no concern about that long forgotten debt. You'll also have an improved credit rating, with which you might qualify for lower interest rates on the next car you buy. My friends are amazed how I can buy a Vibe and pay cash. I could even have bought one at 0% interest, but then someone would still have had a lien on it. I have oodles of cash NOW, because I forced myself to quickly pay off any debts I had ever incurred. I made double payments on my house whenever I had the ability, and as such now own my house . . . no house payment. No car payments either. I charge everything on my Discover card, but pay the entire amount off each month. They never make any interest directly off me, and yet they reimburse me 1% of what I spend thru them. Buying my Vibe I was $4,000 short. So I put that amount on my Discover card. 40 days later I had to pay that bill, but by then I had enough cash, and made $40 rebate from Discover. In other words, I deferred payment and made (saved) money.So resisting the desire to spend that 4,500 today can lead you to not having to resist spending it several times over in the future. I recently paid a financial advisor $150 to create a financial plan to help me save (make) more money. He DID advise me to move one of my IRAs. But his biggest comment was that he believed my wife and I were the two most debt-averse clients he'd ever met. He gladly took my money, but suggested that if all his other clients managed their money like we did, he'd be out of business.KSNeptune

[lordyogi]

"donate" it to a poor college student? maybe give a special GenVibe scholorship? something like that. i always say share the wealth.yogi

[Chris]

Retirement savings. TOTALLY boring... but it will get really interesting later in life and that 4500 will be HUGE when you retire.Folks, please try to keep as little debt as possible! (not including mortgage on your house). Look at the interest you are paying on cards, and loans! It might take a year but, after that, you've got a lot more to play with. Neptune's totally right on. Debt free, stress free and way more unencumbered income for Vibe toysSorry for preaching - I've just found being debt free and skrimping now and then is really the best way to go.

[CaCathy13]

I will be getting that much back, due to the Hope College Credit and Lifetime Learning Credit...and I'll be amending my past taxes to include those, as the preparers never said anything about them at the time. Going to College and being independant has finally paid off in my young age (22). Woo!Thanks for the responses...I think I'm taking $3,500 or so to debt and keeping the rest for a couple goodies (tint and an exhaust) and savings. I would feel too bad using all the money in only one arena...so I decided to break it up and be happy...I was just so surprised I didn't get a lot of "use the $$ on the Vibe". But I'll now get the best of both worlds...so it's all good.

[KSNeptune]

Excellent decision. Enjoy!KSNeptune

[QUIKAG]

quote:I will be getting that much back, due to the Hope College Credit and Lifetime Learning Credit...and I'll be amending my past taxes to include those, as the preparers never said anything about them at the time. Going to College and being independant has finally paid off in my young age (22). Woo!Thanks for the responses...I think I'm taking $3,500 or so to debt and keeping the rest for a couple goodies (tint and an exhaust) and savings. I would feel too bad using all the money in only one arena...so I decided to break it up and be happy...I was just so surprised I didn't get a lot of "use the $$ on the Vibe". But I'll now get the best of both worlds...so it's all good. If you have any student loans and are incurring interest on those loans, it's deductible on your tax return with a few constraints. Who has been preparing your tax returns, H&R Block? haha, sorry...