Ah! Here we are again! Another tax season is upon us! Let's see how many rants I end up posting this year. I can't wait to see if my strategy I developed last year made any difference. Since I now file jointly with Kitty and her salary is so much less than mine, the combined salaries with the combined deductions usually means a hefty refund. And this is the focus of this post. I never understand why people are so happy to get a huge refund check. Of course! You would rather get money back than having to pay more, but don't you realize that if you get a huge refund check, you have essentially been giving the Government an interest-free loan with YOUR money?!? Ideally you should end up +/- $100 or so. But to get $2000-3000 back is just insanity! Wouldn't you rather have had $200/month more in your pocket rather than letting it sit in the Treasury? I also realize that most people are stupid with their money. If they had that extra $200 in the pocket they would probably by more furry pr0n, go to more cons, buy more Starbucks, etc. But doesn't that happen with the big refund check as well. I barely survived all year! Now I have a huge windfall! Should I build up a nest egg? Hell no! I'm off to the Bahamas! And then you come back from vacation and spend the next 11 months living paycheck to paycheck.
I mentioned getting a big refund and adopting a new strategy. What I did was to increase my exemptions thereby getting less money deducted from my paycheck. At the same time I increased my tax-deferred contribution to my 401K. So I essentially paid myself. With retirement not that far off, it's not like I'm locking that money away for decades. Also, I have seen the headlines where the IRS is delaying refunds due to massive amounts of identity theft. Riiiiight. Anything to let them keep their filthy paws on YOUR money for as long as possible. That's why another part of my strategy is to make is so that I owe them not that they owe me. Last year they delayed my refund because they said I had made an error. I made no such error. But it took 60 days for them to straighten out THEIR mistake. So from now on I want to be the one in control of my own destiny. If YOU, IRS, screw up, you won't have your filthy paws on MY money. Don't I sound like an old curmudgeon! *LOL* Oh, and stay off of my lawn.