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Saturday, January 5, 2019

Tax Rumors



I am curious. Does anyone know if this rumor is true? Will this years tax refunds be delayed due to the government shutdown? I see that story bouncing around Facebook and I'm not sure what's really up. Also, I'm too lazy to dig too deep into it. Research can send me down the rabbit hole.

True or not, I was never a fan of big tax refunds. I know a lot of people use the tax system as a sort of savings plan. They overpay their taxes so they can get a big chunk of money later. Here's the thing, it's your money and you've just given the government a zero interest loan.

You'd be much better off to zero out at the end of the year. Actually, if you save the money necessary, you come out ahead if you owe them money. At least you've had the opportunity to get a little interest on your money. That takes a certain amount of discipline to actually do it. If you have something like a workplace savings deduction plan it's easier to do.

I used to joke that I don't want the government owing me money. What if they went out of business? Then I'd never see my money. These days it looks less like a joke and more like a contingency plan.

-Sixbears

12 comments:

  1. Most people don't have that much self-control.

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  2. Although it doesn't earn interest I do have an account strictly for taxes. Don't like getting caught by surprise. - Momlady

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    1. Good plan. Of course, everyone's financial situation is different.

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  3. I read a MSM story the IRS couldn't prosses returns during the shutdown. I am more concerned what will happen feb 1st when snap runs out for 42 million .

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    1. Let us hope it gets settled before then. 42 million people missing meals is not a good thing.

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  4. It seems odd to me that our Congresscritters would consider the IRS non-essential enough to not allow them to continue to take our money/process returns. After all, SOMEBODY has to pay their (Congress's) salaries. Oh wait, they probably have some funds set aside somewhere for that already.

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    1. The IRS has no problem collecting taxes. It's paying them back that they cut out. The politicians made sure their paychecks were fully funded. That's one thing they all seem to agree on.

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  5. People who depend on earned income credits are freaking out. Any delay really affects their life.

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    Replies
    1. Our fearless leader is pretty good at making the little people suffer. Well, at least the rich got their big tax breaks.

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    2. Earned income credits are theft. It is income redistribution.

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