Tax returns

[Chad]

How many people have used or will be using their tax refunds to help pay or completely pay for their tub?

I'll start.
I will be doing my taxes today as a matter of fact. (Yes although I'm a youngster, I do my own taxes and have been since I was 20. 8-))
I will be using all of the refund to pay off the tub. This is the first time since owning my house(3.5 years) that I haven't put it towards the principal payment of my mortgage.
Oh well, I feel like I deserve it.

[anne]

I did last year. Paid for it in full at purchase, but it hurt less because of my tax return.

Is it really that big of a deal, young or no, to do your own taxes? I grew up with my whole family always doing their own, and I always do my own........does H&R block actually earn it's keep?

Now, when I say I do my own, that means with Turbo tax, these days! A few years ago I was just finishing up my taxes, and called my dad to chat. I mentioned that my taxes were almost done- it was my first year of home ownership, so I was worried about doing it all right. He asked me, "What do you use?" I was puzzled by the question, and said, "uh, pencil and paper? What do you mean, 'use'?" Of course he meant TurboTax or one of it's kind. I couldn't believe that my money conscious, doityourself father would spend money on a program he could only use once, and he could not believe that I'd waste the time to do it all by hand! As they say, father knows best, as I discovered the following year.

[Brookenstein]

I have done our taxes the past 3 years.  My husband is an accountant and we got audited 4 years ago and lost, so I took over, lol.  

Our tub was paid for upfront in November 05... can't charge it when its used.  Ours this year will go to pay for getting J's bike fixed and getting his car running so I don't have to chauffer him to work every day.

[Chas]

I have been self employed for most of my life. I do not give the government interest-free loans of MY money for any reason, at any time.

So - no refund.

But the good news - I don't think I'll be paying any income tax this year. Bought a building, made some expansions to a couple of our businesses - pretty much balanced it all out nicely I think.

 8-)

[anne]

I have been self employed for most of my life. I do not give the government interest-free loans of MY money for any reason, at any time.

So - no refund.

You soooooooo have the right idea. Just being an employed Joe Schmoe, I get a  paycheck with taxes removes already like most people, and then I think "yippeee! Money back!" at tax time. If I had my own business I hope I would be organized and disciplined enough to do as you do. As it is, I just pretend that my tax return is a gift, rather than a returned loan, as it truely is!!!!                

[Chad]

Is it really that big of a deal, young or no, to do your own taxes? I grew up with my whole family always doing their own, and I always do my own........does H&R block actually earn it's keep?

I'd be brave enough to say that less than 5% of ALL the people I know file their own taxes. So to answer your question, I would say yes it's a big deal.
And yes, I only use a pencil and my brain, no Turbo Tax. Not that there's anything wrong with that.

[Chad]

You soooooooo have the right idea. Just being an employed Joe Schmoe, I get a  paycheck with taxes removes already like most people, and then I think "yippeee! Money back!" at tax time.                  

Although I get back quite a bit every year, I've never said yipeeeee or even smiled for that matter. This year state and fed combined are getting to KEEP close to $10,000 of my money. I paid in $13,700 combined.
People like me get screwed the most. I'm single, no dependants, and own my house(which would usually be a good thing, but since I have no dependents I can't claim Head of Household). If I'm not the head of the household then who the h e l l  is?" :-/

[Vinny]

I have a friend who is an accountant do my taxes although this year I bought a tax program to see if it does the same. I used to be able to do it but as I got older and life became more complicated, I find it difficult to do them ... too many variables.

I consider myself fairly intelligent but on some of the things that I have to report out on I feel like an idiot as I read the question! I also am wondering if a tax program will catch stupid mistakes such as you can't take a tax credit for child care if a child is over a certain age (I think the age is 13). My friend told me about this about 3 years ago with my oldest. Last year my oldest had to file his own tax return ... he was only 15.

As far as paying for the tub, no. But we usually do use it for vacations. We'll see this year!

[autoplay]

I have been self employed for most of my life. I do not give the government interest-free loans of MY money for any reason, at any time.

So - no refund.

But the good news - I don't think I'll be paying any income tax this year. Bought a building, made some expansions to a couple of our businesses - pretty much balanced it all out nicely I think.

 8-)

Likewise Chas!  I also use a retired former employee of the IRS,who does CPA work as retired.  He's able to help me,as he knows the business,and what flags NOT to raise etc. My wife keeps the books throughout the year,and for his services,including our personal taxes,we pay about 500 a year.

Was nice being in Why Nots shoes and others years ago,was getting money back from uncle Sam every year. But as Chas said,why let uncle Sam save your money,esp as it's interest free for uncle Sam?

Lastly,use the banks money!

[thearm]

I have a CPA do ours. I do find it ironic that a lot of you are doing your own on one hand. But highly suggest that everyone should buy a spa from a dealer because of their expertise.  I prefer to pay a professional for peace of mind and support when the Audit comes. As convoluted as the tax laws are and constantly changing, it seems like a good deal to me. You might be suprised at what legal deductions are out there and some being used that are illegal. All in all I feel it is money well spent. I to try not to get a refund as I don't need to be making loans to the goverment. I claim 7 deductions in my paycheck and only three at the end of the year and usually still get money back.

[shortspark]

Although I get back quite a bit every year, I've never said yipeeeee or even smiled for that matter. This year state and fed combined are getting to KEEP close to $10,000 of my money. I paid in $13,700 combined.
People like me get screwed the most. I'm single, no dependants, and own my house(which would usually be a good thing, but since I have no dependents I can't claim Head of Household). If I'm not the head of the household then who the h e l  is?" :-/

I'm in the same boat as you are - single, no dependents and own my home outright.  I have no interest payments of any kind.  Really sucks!?  Ha!  What most people would give to be in our situation!!!?  But as far as taxes go, yes, it does suck and we do get screwed.  Best thing to do in terms of hot tub/taxes is to get an Rx from your doctor that you need it for theraputic reasons.  That way I would think you could write off the whole thing or at least part of it if your total medical expenses reach a certain percentage of AGI.  I don't know what the IRS ruling is about deductions for hot tubs but if a doctor prescribes it I can't see how they could deny the deduction.  

By doing that and paying two years of your propery taxes in the same year, doubling your yearly contributions in the same year, watching closely your capital gain distributions, stock sales, deducting all other medical related costs (except drugs which I do not believe can be deducted), etc., just might qualify you to take the itemized deduction at least in that year, rather than the lousy standard deduction they give people like you and me who can't normally itemize.  For people in the market for a hot tub this will ease the pain of the purchase price.  If you have no history of back trouble or arthritis or some such thing, you might not be able to do this of course but by talking to the doctor there might be a way.  Anyway, doesn't everyone over the age of 50 have some sort of back trouble from time to time?

[Brookenstein]

I claim 7 deductions in my paycheck and only three at the end of the year and usually still get money back.

J claims married 8.  Our family consists of 4.  We get a decent refund back each year thanks to how much we pay in interest on the house.  He wanted to raise it and claim more so we aren't giving the govt a tax free loan, but I'm too scared to claim more.  Plus a few hundred extra each month would just be lost in the general fund where as when I get $2 or $3k I feel like I can do something substanital with it.

[anne]

Shortspark and WHY NOT, you guys have me confused. Yes, if your house is paid for in full then you have no tax shelter in your mortgage interest. But you dont have to have a family or dependents to itemize.....

To me, turbotax is a worthwhile expense. Generally it cost about $20 and it double checks all your work and looks for ways to save money. It asks you all the relevant questions, asks you to input numbers, then it DOES IT ALL. Much less chance of error, and not expensive. You can pay a little extra and have "coverage" if you get audited, but I never bother.

[anne]

I'd be brave enough to say that less than 5% of ALL the people I know file their own taxes. So to answer your question, I would say yes it's a big deal.
And yes, I only use a pencil and my brain, no Turbo Tax. Not that there's anything wrong with that.

Well, having always done my own, I guess I just think of that as par for the course, but congrats on doing them. I'm about as cheap, errr, as economical as anyone I know when it comes to minimizing little expenses like eating out, and frivolous items, but I strongly recommend TurboTax. I'll never go back to pencil and paper!!!!!

[grumpy]

I plan on using my rebate to pay for the tub. Hopfully I get enough back.  :-?