Estimate your 2005 Tax Refund

[Russell]

This online calculator is much better than my spreadsheet I made:

http://www.dinkytown.net/java/Tax1040.html

So, what tax bracket are you in ? We're in the high 25% tax bracket. We'll also have to adjust our tax witholding so we don't end up owing $5k next year

[dealsaver]

Re: Estimate your 2005 Tax Refund

We are in the effectively negative tax bracket since we get paid the refundable child tax credit. I always look foward to getting turbotax in November each year to see how much I'll be getting paid each year.

[jmjj215]

Re: Estimate your 2005 Tax Refund

The child tax credit is refundable? I thought just the EIC was. Cool.

[sweeps]

Re: Estimate your 2005 Tax Refund

I read an article a little while back arguing that some people should NOT decrease their withholding to avoid giving the gov't an "interest-free loan". The argument was that some people simply will not save unless it is forced on them. So big tax refunds offer a way for people to accumulate a fair amount of cash to pay down debt or toss into savings.

[dealsaver]

Re: Estimate your 2005 Tax Refund

I read an article a little while back arguing that some people should NOT decrease their withholding to avoid giving the gov't an "interest-free loan". The argument was that some people simply will not save unless it is forced on them. So big tax refunds offer a way for people to accumulate a fair amount of cash to pay down debt or toss into savings.

That really only makes sense if they have a large annual expense that occurs when they recieve their tax refund that they wouldn't otherwise save for. If they were really going to save that refund amount, it would be easier to save a little year 'round than to be tempted with that one large check IMO.