Quote:
Originally Posted by bjl584
The goal should be to not get a refund. Otherwise you are giving Uncle Sam a 0% interest loan on your money. Change your witholding status and it should get rid of at least most of your refund. But, if I do get anything back it's going into savings,
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Yeah, well, that's a great plan. Not always possible with variable income and estimated taxes.
My DH is partially self-employed, but he does some salaried or consultant work through the year. The tax laws require that we pay AT LEAST 90% of last year's tax bill, regardless of income THIS year, to avoid penalties.
So we do. It turns out that I got a pay reduction/furlough this year; I nearly maxed out my 403(b) even with two months on disability; AND he had a real reduction in SE income due to the recession.
I expect we will get a VERY LARGE refund this year. Which will promptly go into an "income smoothing" account for DH, so he can have regular income every month, regardless of his business' accounts receivable that month.
So, not all of us are idiots who give the gub'mint an "interest free loan" due to ignorance or stupidity. For what it's worth.
Sandi