Jump to content

Tax Refund Questions


XxRaVeNxX
 Share

The last post in this topic was posted 3453 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts

Figure the most credit savy people, know the most about taxes. And probably 30 days jumping the gun, but it's on the tip of my mind.

 

 

And I fall in the category that technically doesn't pay taxes, since I make about 36K, but am able to claim my fiance(who didn't work this year due to school) and her son.

 

 

1. What should I do? If I receive, say about 4-5k in a refund? Should I pay down/off my credit card debt or re-invest it in my Roth IRA or a Vanguard VTA? (Investment Property even crossed my mind)

 

 

A. I recently opened a Roth IRA, so I'll see how this affects my taxes

 

 

2. Looking at deductions, looking at donating some things to Goodwill, does this deduction even help me, even if I'm gonna get a refund? Or do these donations/deductions only help with people who don't get refunds and owe the IRS?

 

 

Any opinions is greatly Appreciated....Young and Learning as I go...

 

 

Link to comment
Share on other sites


Unfortunately, this isn't a simple answer without knowing your entire financial picture, but I will try to address each item you mention above, of course in generalities. First of all, getting a large tax refund is not fiscally smart. You are giving the government an interest free loan, instead of saving the money and earning interest yourself or paying off debt. You should shoot to have a small refund at year end (a few hundred dollars or less), or even better is to owe a small amount at year end (thus taking an interest free loan from the government), but some people are not comfortable doing this, or don't want to owe the IRS.

 

1) How much do you owe in cards? What is the interest rate? Are you comfortably paying your bills each month? Do you have any emergency savings? If you have a few months of emergency savings, and you can comfortably pay your bills each month (if you can't you should absolutely be increasing your exemptions to get less taken in taxes and get no refund), then I would suggest either paying off your CCs (especially if they aren't at 0%). Once those are paid, if you have leftover, I would look at adding to your Roth. With a salary of $36k, and supporting 3 people, I don't think investment property is the right move.

 

2) Donating to goodwill (strictly speaking of the tax benefit here) is only beneficial if you itemize deductions. Since it seems that you are already getting everything back you are paying throughout the year, there would be no additional benefit for tax purposes. However, if you have the stuff laying around and aren't using it, donating to others is a good charitable thing to do.

 

 

This is really general advice, and comes without knowing your entire situation. You should consult a tax professional or financial adviser if you need detailed, specific advice.

Link to comment
Share on other sites

Figure the most credit savy people, know the most about taxes. And probably 30 days jumping the gun, but it's on the tip of my mind.

 

 

And I fall in the category that technically doesn't pay taxes, since I make about 36K, but am able to claim my fiance(who didn't work this year due to school) and her son.

 

 

 

Why are you able to claim your fiance? Will you be married before 12/31?

Link to comment
Share on other sites

Because that article is talking about 2008, I went to the IRS website and ran through a quick tool they had to determine if you can claim someone. It seems as long as they are unmarried, a US citizen, have a SSN, make under $3700, live with you, cannot/aren't be claimed by anyone else and receive at least half of their support from you, then you can claim them (just making assumptions from the questions the tool asked, didn't read through all the code).

Link to comment
Share on other sites

We are in the same income bracket and you can anticipate a refund close to what you quoted, you actually get credit for contributing to IRA's.

I would suggest using the money to pay down cc debt & contribute to your IRA ( again this is a tax break for HOH). Investment property is not my forte, have nothing to add there other than good luck!!

No it is a waste of time and possibly an internal red flag for you to try and itemize and write off.

Link to comment
Share on other sites

I think the best investment you can and should make is for a good accountant. Even if you do a consultation (which should be less that $75) I think it would benefit you. With that said based on the info I do not think you would get itemized deductions, most likely standard. If I was in your shoes, I would contact a CPA and get a consultation.

Link to comment
Share on other sites

Just curious.............In what state do you reside ? Also, who pays for her school expenses.......tuition, books, etc. ?

 

TN...Grants/Financial Aid

 

 

Edit:(I just realized there's more credits I can get for her being in school, American Opportunity Credit)

Edited by XxRaVeNxX
Link to comment
Share on other sites

Are you the father of her son ? Is she already divorced and if not, is there any "father" currently in the picture ?

 

I want to say combination of both(Scholarships/Loans)

 

I am not the father. She was never married. The 'father' is currently in jail for non payment of child support.

Link to comment
Share on other sites

You need to know THE AMOUNT of loans that she received in any given year that she used to pay for any of her expenses..........not the scholarships, just the loans, for the moment..........Can you find out this information ? (Important )

 

 

Just asked her, I was mistaken...this year was paid by grants...The only loan she had was from 2008, for about 3600...

Link to comment
Share on other sites

Because that article is talking about 2008, I went to the IRS website and ran through a quick tool they had to determine if you can claim someone. It seems as long as they are unmarried, a US citizen, have a SSN, make under $3700, live with you, cannot/aren't be claimed by anyone else and receive at least half of their support from you, then you can claim them (just making assumptions from the questions the tool asked, didn't read through all the code).

 

 

interesting, I didn't know that. It may come in handy if my GF ever loses her job!!

Link to comment
Share on other sites

It might be a big relief to you to pay off your student loans that you are concerned about.

 

Thanks for the reply, that's the topic of another thread entirely...but I'll be ok...

 

Translation: "I don't want to pay those loans."

 

Translation: "I'm a troll, and have nothing of substance to add to the topic at hand"

Link to comment
Share on other sites

It might be a big relief to you to pay off your student loans that you are concerned about.

 

Thanks for the reply, that's the topic of another thread entirely...but I'll be ok...

 

Translation: "I don't want to pay those loans."

 

Translation: "I'm a troll, and have nothing of substance to add to the topic at hand"

 

Careful who you are calling a troll, buster. I've been answering questions and helping people here for quite some time, and the allegation doesn't fit at all.

 

So far what I see from you is that you ignore everyone's advice and do whatever you want, anyway. Why are you even here?

Link to comment
Share on other sites

The last post in this topic was posted 3453 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      184,169
    • Most Online
      2,046

    Newest Member
    Kiwi94
    Joined
×
×
  • Create New...

Important Information

Guidelines