Getting back my free loan to the government!

**Detroit Power** · 03-26-2011, 08:14 AM

Just filed our state and federal taxes.....couple bucks shy of a 5-figure refund.

Too bad it's going towards an upcoming dental bill for the wife, CC repayment, and some savings.

**Krazydan** · 03-26-2011, 03:14 PM

sounds like you need to adjust your w4

**Zapper2003** · 03-26-2011, 03:28 PM

5 figures? You counting the .00 as figures 4 and 5?

**5.0THIS** · 03-27-2011, 01:06 AM

Wow, I can think of alot better things that money could have been doing over the past year other than sitting with the goverment earning you NOTHING. It really isnt a smart move financially. As was said above, you need to make some adjustments to your claims.

**Detroit Power** · 03-27-2011, 09:08 AM

Zapper: Nope, $10,000.00

I claim zero on my W4. We're good savers (13% into the 401k) in addition to what we're saving each month for our next house. I could change the W4 so I saw the additional $190 in each paycheck but we would probably end up spending all/most of it. We've had it set up this way as long as I can remember so we get a sizeable refund. When it comes in a "lump sum" each year we use it for a major purchase such as flooring for the house, new appliances, vacation, etc. I agree we're loosing on potential income if that money went elsewhere into an interest earning account. I think I might end up looking into a Roth IRA, but the cap on that is 5k/year I believe for my age.

**666ws6** · 03-27-2011, 09:32 AM

Wow, man. You should adjust things and have that money put into savings acct automatically each month. No sense in letting the man have it for the year.

**5.0THIS** · 03-27-2011, 12:12 PM

Originally Posted by Detroit Power

se. I could change the W4 so I saw the additional $190 in each paycheck but we would probably end up spending all/most of it.

Well, nobody can help you with that. All you're saying is that you're too irresponsible with your money to keep from spending it. It's a self control thing, because obviously you have enough money as it is now on a monthly basis to pay all of your bills and save some. Set up a secondary savings account for that extra xxx$ per paycheck to go into, that way the money is at least in your hands, earning some modest interest, and sitting their in case it is needed in an emergency. You still have to have the willpower though to disregard that account and treat it as if it isnt there unless there's an emergency.

**blackSS01** · 03-27-2011, 12:22 PM

Originally Posted by 5.0THIS

Well, nobody can help you with that. All you're saying is that you're too irresponsible with your money to keep from spending it. It's a self control thing, because obviously you have enough money as it is now on a monthly basis to pay all of your bills and save some. Set up a secondary savings account for that extra xxx$ per paycheck to go into, that way the money is at least in your hands, earning some modest interest, and sitting their in case it is needed in an emergency. You still have to have the willpower though to disregard that account and treat it as if it isnt there unless there's an emergency.

This!! A little self control goes a long way

**Detroit Power** · 03-28-2011, 10:46 AM

Originally Posted by 5.0THIS

Well, nobody can help you with that. All you're saying is that you're too irresponsible with your money to keep from spending it. It's a self control thing, because obviously you have enough money as it is now on a monthly basis to pay all of your bills and save some. Set up a secondary savings account for that extra xxx$ per paycheck to go into, that way the money is at least in your hands, earning some modest interest, and sitting their in case it is needed in an emergency. You still have to have the willpower though to disregard that account and treat it as if it isnt there unless there's an emergency.

Unfortunately, payroll at my company only allows direct deposit to 3 accounts, and I have my paycheck split between joint checking, joint savings, and the wife's checking account. I'd have to drop my wife's discretionary funds/account to do that.

The downside to an alternate savings account is even high yield accounts are < 2%.

Meh.

**Schmalgar** · 03-28-2011, 10:59 AM

You guys should really try not to preach so much. He knows his situation and needs much better than you. And I'm sure you're financial wizards who do absolutely nothing wrong or foolish or whatever with your money? Uh huh. Let him enjoy it...

**Detroit Power** · 03-28-2011, 11:33 AM

I tried to inject a little humor in the thread title, but I expected this kind of response so it's no big deal.

I should probably do something different though. If the extra funds (which you are correct Schmalgar, I do not need throughout the year) went into a savings account the yield would be minimal at best. If it went into an IRA it would essentially be "untouchable"....period. Sure, a savings account would allow better access in an emergency but that's what our other savings account is for.

0.5% APR in Savings > 0.0% loan to Big Gov.t, but really guys?? Not enough of a difference to even bother chaning the W-4.

Y'all are right though....I am bad about self-control, sort of. I don't spend money on myself though, or very rarely. I'd end up spending the money on my family...dinners out, toys/games for the kids, clothes/purses for the Mrs. So it's not like it would be completely wasted, but I'd rather have the money at the end of the year as it goes towards bigger-and-better things as previously mentioned (with this year as the exception, since it's to pay down debt)