Wow, Tax Refund

[mom-from-missouri]

Just finished this week doing our taxes. Usually, we come out about even. My husband always has had extra taken out of his pay to cover for what I earn doing some home childcare, and to offset the earnings on our rental house. However, he lost his job last spring.

Fast forward, I did the taxes and the refund was huge. A friend, who is a retired cpa and part time IRS auditor looked it over for me, as I mentioned to her how huge the refund was. She agreed I did it correctly. I used turbo tax, she did it by hand, the old fashioned way. They were within $60 of each other.

Between the federal, and 2 different states we worked in, we should be getting back close to $20 thousand. Since I stopped doing home childcare right after the husband lost his job, and we evicted our renters, the extra taxes he paid out the first 4 1/2 months of the year we are getting back. We also dropped down to a much much lower income bracket (actually to zero income for several months).

We will pay off the car, pay the property and real estate taxes, medical bills from a recent hospital stay and be debt free again, except for the land payment and mortgage on the rental house, which has a contract on it for renters in 6 months. The remainder will replace our nest egg, which we used while the husband found a job.

Meanwhile, out of the blue I was offered the perfect job, close to home and well paying.

We are back on track!!!

[disneysteve]

I did the taxes and the refund was huge.

we should be getting back close to $20 thousand.

Meanwhile, out of the blue I was offered the perfect job, close to home and well paying.

We are back on track!!!

Yay! That's all great news. A big unexpected refund AND a NEW JOB!!

What came through in the job department? Considering what you posted about the job market in your area, I'm curious what happened.

[Joan.of.the.Arch]

$20,000 refund! Wowzer.

And thank goodness for the job! I got a chill when I read that (but it might be that I need to put on a sweater. )

[mom-from-missouri]

Yay! That's all great news. A big unexpected refund AND a NEW JOB!!

What came through in the job department? Considering what you posted about the job market in your area, I'm curious what happened.

Sadly, a local pharmacy tech passed away. I used to work and actually owned a small % of a pharmacy years ago, so already have the training. I am taking her position. Close to home, just a couple blocks from the public school (we have 1 public schooler now, and one who is public schooled and home schooled-duel crediting) so the location is perfect.

We are the only pharmacy in the county. Its just sad someone passed away and that is what lead to my getting hired.

[disneysteve]

Its just sad someone passed away and that is what lead to my getting hired.

That is sad but from what you've posted about the size of the town, the size of the population, and the low number of jobs that exist, I suppose someone dying is one of the only ways that a job is going to open up.

[LittleMissSplendid]

Now that is what I call a windfall! Hooray for getting back on your feet and congratulations on your new job! Yes it is sad that someone passed away, but look at it this way. If that job were to sit vacant, how many people would suffer? Too many. It is much better for it to go to you, someone who can not only do it well but will truly appreciate the opportunity.

[rennigade]

Thats nice to receive a large tax return...but from everything I have ever read here and at bogleheads didnt you essentially give uncle sam a 20k tax free loan? That money could have been working for you throughout the year. Either way, still fun to have cash coming in.

[disneysteve]

Thats nice to receive a large tax return...but from everything I have ever read here and at bogleheads didnt you essentially give uncle sam a 20k tax free loan? That money could have been working for you throughout the year. Either way, still fun to have cash coming in.

That's true, but sometimes situations change during the year that weren't anticipated. I've had that work both ways. We've gotten an unexpectedly large refund some years. We've also owed an unexpectedly large amount other years. It all depends on what transpired during the year. Unfortunately, I think this is going to be one of those owing years because two of our taxable investments paid out large capital gains.

You shouldn't intentionally overpay taxes just to get a big refund, but it doesn't sound like OP did this on purpose. I'm sure she would have much rather had the cash on hand throughout the year given the choice.

[mom-from-missouri]

You shouldn't intentionally overpay taxes just to get a big refund, but it doesn't sound like OP did this on purpose. I'm sure she would have much rather had the cash on hand throughout the year given the choice.

It was intentionally unintentional.......We had been doing it to offset the income that we normally had on the rental house and on my daycare. it worked well for us, and was easier to do than setting it back, as this way we could not get to it.....well, we needed it, and couldn't get to it.

Our biggest lesson learned, was a 1 year emergency fund is wonderful But, we needed to have more of our retirement invested in such a way that it would be easier to take when needed, not after he reached retirement or 57 1/2 years. Since he was getting closer to retirement, we were living on less and having as much of his check as possible put into his 401K and other investments that we are not yet old enough to touch. It earns more than a savings account....but to do it again, I would say 3 years of living expenses in an emergency fund, and other 2 years in an investment where it can be taken out without paying fines, and penalties for early withdraws.

I also discovered something else interesting last week......Remember back when ING had the special promotion that for every account you opened, you got $25 and so did the person who opened it? We did all that, numerous times, one for each child and the money was coming out of my first husbands account each month to feed those accounts $25 each month on the 15th. I forgot all about that, and the first husband is deceased. We were divorced when he passed away. I forgot all about those accounts. I assumed he quit feeding those accounts when we divorced. He did not as the money is still going into the girls accounts each month AND MINE. Its now capitol one. I called, and they told me what bank it was coming from. I called that bank, and was told he made arrangements for it to go until that account was depleted. Each of the kids now has a couple thousand dollars in their account. I am going not going to tell them, and when it stops, give them the accounts. I assume he arranged for it to also go to mine out of guilt, as he was not ordered to pay child support. I always thought he had money somewhere and was hiding it...this may be where it is hidden. The bank could not tell me the balance or any other information, other than it was not a mistake, but arranged from him. I will spend mine when it ends, probably on something for the girls and all to enjoy. As for the girls, maybe it will be timed for them when they are ready to get their first home.

[LuckyRobin]

Wow, it is really great to hear that everything has turned around for you so dramatically.

[snafu]

So nice to learn of a splendid outcome. Wish you well in your new job.

[LivingAlmostLarge]

Wowsa. part was also loss of income resulted in child tax credit and stuff

[creditcardfree]

You really did need some good news! Congratulations on the new job.