What are you doing with your tax refund?

suven Posted: Jan 27, 2005 04:14 PM

What are you doing with your tax refund?

I work in NY, but live in NJ, so I will be getting money back on that.

DH had said he wanted to split the money, and we each decide what to do with our half. (He'll get a big deduction for what he paid in tuition, as well as the interest he started paying on his student loans)

We'll be able to use our closing costs and mortgage interest as deductions.

So, I told him that I'm not splitting it in half because I'm going to get at least a couple thousand back from NY and I want that to myself to put toward redoing our bathroom. (So, I guess it's not just for ME, I just want COMPLETE CONTROL over it)

He has student loans, so he wants to put some toward that. I've had a much higher tax deduction from my check ALL YEAR, whereas he had the money in his hands every week to spend. But, then again, he does have those tuition deductions.

But, financially, the smartest decision is probably to save the money and put it toward a house, right?

What's the federal advantage to being married? Are the taxes higher or lower?

What are y'all doing with your refunds?

KarenB Posted: Jan 27, 2005 04:19 PM

Re: What are you doing with your tax refund?

We are putting ours in a fund for a new car. We just bought a house but our 2nd car will need to be replaced and we want to have a nice down payment for that.

I agree w/you, you should save it for a house.

jen110704 Posted: Jan 27, 2005 04:29 PM

Re: What are you doing with your tax refund?

We're either going to pay off some credit card debt or put it towards saving for a house.

Jordan Posted: Jan 27, 2005 04:37 PM

Re: What are you doing with your tax refund?

Refund??

I wish.....I don't anticipate getting one this year.....and I owed last year too.

nylisa Posted: Jan 27, 2005 04:39 PM

Re: What are you doing with your tax refund?

We will be putting into our savings account to start saving more money again and use some of it for our weekend trips.

shamrock12472 Posted: Jan 27, 2005 04:44 PM

Re: What are you doing with your tax refund?

What's the federal advantage to being married? Are the taxes higher or lower?

What are y'all doing with your refunds?

We haven't talked about it yet so I don't know but to answer your question on the Federal advantage - what you are referring to is the marriage penalty. It is basically when their are 2 incomes it takes a lot more in costs such as medical expenses and other allowable deductions to hit the respective 2% and 7.5% floor. Then you throw in AMT tax and you get royally scr$wed!