The April 17th deadline is fast approaching and your taxes will be due. Most people dread this deadline but I have found it very easy to overcome. Just create 1 folder and label it 2006 Taxes and as your 1099’s come in the mail just put them in this folder until you’re ready to go to your accountant or do your taxes yourself online. If you itemize your taxes, create an excel spreadsheet of all your expenses you can write off, add up the totals, print it out and add that sheet to the folder. As long as the information you have is organized, it will be easy to get your taxes done.
If You Get a Refund, What Will You Do With It?
There is an interesting USA Today/Gallop Poll released today about what people will do with their refund check. 72% said they will save the money or pay a big bill instead of spending it on a flat panel tv, a vacation, or other gadgets. Experts seem to concur that although people have the intention of saving the money, 72% is much higher a number than those that actually do save their refund. The average refund check in the US is $2,771 and adds up to $230 Billion that the IRS pays out. This $230 Billion accounts for much of the Spring jump in retail spending, which tells us right there that many people do not end up saving their refund checks. Retailers like Lowe’s capitalize on this by allowing people to cash their checks in the Lowe’s store so they can spend it right there. They’ve also launched a site loweshomeinvestment.com as a marketing tool to have people spend their refunds.
Is It Better To Get A Refund?
Although we all love getting a refund, every financial planner will tell you that you absolutely should NOT get a refund if you can control it. Getting a refund means you have given the IRS an interest-free loan for an entire year. Surely you could have held this money in YOUR bank account and accrued interest. One way to shrink your refund check and keep more of your hard earned money is to increase the number of exemptions you claim. If you calculate properly, you should really owe the IRS a moderate amount in taxes. The USA Today/Gallup Poll also asked tax payers what they’d prefer: 50% said they hope to break even; and 45% said they hope to get a BIGGER refund than last year.
Where Should I Do My Taxes?
If you’ve waited this long, your best bet is to probably do them online (assuming your taxes are straight forward). If they’re complicated and you’ve never done them online before, then go see an accountant or CPA.
If you take the online route, there are several good options:
Have you ever thought to donate your car for charity? Give back to the community with car donation services. We can also donate your boat or RV as well. If you would like to learn more about donating a car, read this. Here you can find tax information on car donation if you have questions.
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Property Taxes are right around the corner, I’m paying them if I even get a refund!
I know what you mean Gary - property taxes suck!
They suck extra special in the last few years with the rise in house prices … which is great if you’re selling, but not so much if you’re not
You guys should be glad you guys arent in Canada. We are all about taxes buddy!!
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Comment by Shane
2007-04-04 22:05:53
What it’s all about in Canada is write-offs. You just need to have a kick-butt accountant!
Comment by Shawn Ismail
2007-04-05 08:03:07
Or go to H & R Block.
Comment by Shane
2007-04-05 17:58:05
I wouldn’t use H&R block if you have business income and expenses.
I’ve been lucky to work with a few accountants over the last several years on different things. The one I use for my own stuff is the best one I’ve worked with. She makes the numbers dance!
It’s always good to keep your eye on good people. Always.
Comment by john anthony
2007-04-05 22:43:44
I couldn’t agree more Shane.
Canada’s deadline is April 31st. But nonetheless I’m in a bit of a pickle, becaues there was this part time job I kept fora bit in 2006, to supplement my income as I was starting my business, and they sent my T4 to my old address - way back when i was in highschool. I guess I never updated mjy address while I moved three times haha. Oh well.
Anyhow until i can recover that income slip thingy, I can’t do nothing..
i let the IRS keep my refund and apply it to my Q1 estimated tax. i don’t have to “pay” taxes again until June! that gets another big ole WOOHOO!!
Just printed out mine few minutes ago and will show to my accountant after work tomorrow to see if she is okay with it! Yeah, it keeps me until this hour. As for refund, I think I will talk to our payroll office, and see if they can reduce my deduction so like you cited above, I don’t give the interest free money to IRS then get it back later.
I used to claim all I could, but would still get $4000 back when tax time came.
I prefer to break even or owe money.
Same here HMTK. That’s the way to go.
Thanks for the reminder, John Anthony! I usually do mine on February 1st…or as soon as I get my W-2. On the down side, I generally spend mine about 4 months before that. =O
And what about the FACT that unapportioned income taxes on an average American’s wages is illegal??? See http://www.givemeliberty.org
Perhaps, but the legal fees for not doing it are nasty.
I hate to pay taxes in the UK on my salary and I found a good way to get back a Tax refund for the first year I was in the UK (because I pay too much taxes). I used a tax refund company called http://www.sos-taxes.com