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When I was young I used to look forward to getting a return and quickly realized I was giving the Government a free loan. I adjusted my deductions to land me at just about zero for many years but last year I thought... What if I claimed more and saved that cash in an interest bearing savings account? This way I still get a return (The money saved in the savings account) and I earn interest on my money.
So last year I decided to claim 6 rather than 3 (My wife, daughter and I). At the same time that I did this, I started saving the difference that I was sending to Uncle Sam in a savings account. Month after month, I put back about $340 dollars. At the end of the year, I ended up with $5,800 in this savings account to offset my tax bite (I was worried so throughout the year I added a few extra dollars here and there).
Fast forward to yesterday when I filed my taxes. After receiving interest throughout the year (Not much but something), having almost $6,000 addition in my emergency fund. I ended up paying Uncle Sam $1,397 which gave me a return of $4,400 dollars. And since the money is already in my savings account, I don't have to wait at all for my "tax return".
So my flaw... was I over saved witch netted me more interest earned and a larger chunk of money.
For now, this will be added to my Emergency fund until I can figure the best way to spend it.
Thanks for reading,
Ray I
So last year I decided to claim 6 rather than 3 (My wife, daughter and I). At the same time that I did this, I started saving the difference that I was sending to Uncle Sam in a savings account. Month after month, I put back about $340 dollars. At the end of the year, I ended up with $5,800 in this savings account to offset my tax bite (I was worried so throughout the year I added a few extra dollars here and there).
Fast forward to yesterday when I filed my taxes. After receiving interest throughout the year (Not much but something), having almost $6,000 addition in my emergency fund. I ended up paying Uncle Sam $1,397 which gave me a return of $4,400 dollars. And since the money is already in my savings account, I don't have to wait at all for my "tax return".
So my flaw... was I over saved witch netted me more interest earned and a larger chunk of money.
For now, this will be added to my Emergency fund until I can figure the best way to spend it.
Thanks for reading,
Ray I
My problem is taking into account the random deductions/credits, like tuition credits or itemized deductions (mostly charitable donations).
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