Tax REFUND, not tax RETURN

[poundwise]

Re: Tax REFUND, not tax RETURN

I have actually done an ing a long time ago. But again, I don't have that kind of cash all at once. We are simple people who are trying very hard to save up but it takes time when I just went back to work and my dh is a contractor so sometimes work is scarce. Do they have any ing offers for returning people with a lower deposit? Or other banks?

There are a multiplicity of banks offering 5% APY and greater with no minimum (or $1) required to open; no fees. (See link in my signature)

[tinapbeana]

Re: Tax REFUND, not tax RETURN

cicy, you might want to try apple bank http://www.grandyielddirect.com is the portal for their online savings account, i've had one about 2 months now. they have a $1 minimum balance and are currently offering a 5.27% APY. it is truly a savings account with no check writing and no ATM card, but that's fine for me as i have 2 real life checking accounts anyways. so far it takes about 3 business days for my money to be triggered from one bank and show up in the other bank, but since i move relatively small amounts i'm not loosing a boat-load of interest.

[tabbycat31]

Re: Tax REFUND, not tax RETURN

Shall I keep this question on this refund/IRA post or start a new one? I'll try it here. Here's our situation this year. Stupidly low income + student loan interest deductions + two kids = large tax...um...credit? Not really a refund for us because we haven't actually paid the money. Anyway, we have not been able to contribute to our Roths this year since DH was a student and I made less than $25k. We want to use our refund money (probably several thousand - we got $4k last year) to put into our Roths for 2006, not 2007 (providing we file early, as we plan). But since we won't have the money until after we file...do we have to amend our 2006 return to include the contributions? The alternative would be to take the money out of the EF (once we know what our refund will be), then replenish it with the refund. Follow me? Any ideas?

Actually if you use your refund to fund a Roth for 2006, then you qualify for the Saver's Credit which can be worth up to $1000 per taxpayer. If your tax liability isnt already zeroed out (based on your situation it may be) then the Saver's Credit can do so.

[cicy33]

Re: Tax REFUND, not tax RETURN

I have actually signed up for one of the accounts. very interesting. thanks for the links! I am not to keen on online bank accounts but will try this one and see what happens!

[jodi]

Re: Tax REFUND, not tax RETURN

Actually if you use your refund to fund a Roth for 2006, then you qualify for the Saver's Credit which can be worth up to $1000 per taxpayer. If your tax liability isnt already zeroed out (based on your situation it may be) then the Saver's Credit can do so.

I thought I had heard something about a Savers Credit - good to know. Thank you. It probably won't matter in our case, but I will definitely check the numbers to be sure before filing.

[tabbycat31]

Re: Tax REFUND, not tax RETURN

I work in a tax office, so if you have any other questions, just ask me about it. It's a non refundable credit, and I've seen it wipe out tax liability. It's probably the most overlooked tax credit.