Comments on: The Simple Dollar Weekly Roundup: TrentHamm.com Edition

By: Brittany

Brittany — Thu, 15 Apr 2010 03:55:51 +0000

There’s also the issue that much of what people receive as a refund are tax credits (if you’re getting that $3000 mentioned as an article in a refund without a lot of child tax credit, first time home buyer credits, etc. you’ve got to have screwed up withholding somewhere). Some credits you can get in advance a bit at a time (like EIC… maybe Making Work Pay) instead of in a refund, but to me that seems like a gamble, since taking a credit in advance is making a bet that nothing (either policy or your personal situation) will change.

By: Sara

Sara — Thu, 15 Apr 2010 00:07:35 +0000

If I knew exactly how much I would have to pay in taxes, I certainly wouldn’t choose to overpay and give the government an interest-free loan. The problem is that I don’t know how much I will have to pay in taxes, and if I’m going to be surprised, I’d rather have a pleasant surprise than an unexpected expense. It gives me peace of mind to know that I will be in a better financial position after I file my taxes.

By: Molly On Money

Molly On Money — Wed, 14 Apr 2010 23:21:08 +0000

This is the first year we owed taxes. It was intentional. It was also a bit painful but I like that the government wasn’t holding my money all year. If you have the will-power I say go for it and take a pass on the refund next year.

By: todo es bien

todo es bien — Wed, 14 Apr 2010 19:06:55 +0000

Conceptually, I can understand the preference for owing rather than paying taxes. However, behaviorally, if I receive a lump sum it is more likely that I will save/invest it. If i receive an extra $20 a week I am more likely to just spend it. That of course does not make sense, but it tracks to my real world behavior. This year taking the 4k the government is sending me back and investing every cent of it. Would I have done that if I received $333 a month more income. Nope. I suppose you could argue that it cost me $150 or so in lost interest, and you would be correct. I would say WHAT YOU DID with the money far outweighs WHEN you did something with it. (assuming a relatively short time frame like a year)

By: Johanna

Johanna — Wed, 14 Apr 2010 16:33:56 +0000

On taxes: Considering that keeping money in a savings account these days is not all that different from giving a free loan to a bank, I don’t see what the big deal is. I’m not one to deliberately overpay my taxes throughout the year in order to get a several-thousand-dollar refund, but it’s not a terrible idea for people who have trouble saving up several thousand dollars by other means.

By: Susie

Susie — Wed, 14 Apr 2010 14:19:32 +0000

Okay, so I went to check out your personal website and all it has is a quote by Ethel Watts Mumford. What’s up with that?