Are You Expecting A Fat Tax Refund This Year? Then Don’t File!

by Charles on February 23, 2012 · 5 comments

in Tax

It’s almost end of February and I still haven’t filed my taxes. Although I’m expecting a fat check from the IRS this year, I’m waiting as long as I can to file. Any normal person would file as soon as it is possible if they’re expecting a big fat check. Who wouldn’t want money when it’s just waiting for them? It’s like a chubby kid refusing candy from his parents. It just doesn’t happen. Before you call me crazy, there is a rhyme and a reason for my decision.

consolidated form 1099

Average American
You see, the truth of the matter is that I am normal. I am just like everyone else and I desire to have money. That’s why I don’t want to file just yet. The average American man, according to Frugal Dad’s infograhic,  is overweight, makes $36,000, and in $14,750 in debt. That’s right, the average American man is in debt, which means he spends more money than he makes. Imagine what he would do if he suddenly had $4,000 waiting for him. What do you think he would do with it? I can only imagine he would spend most of it on things he really doesn’t need. I don’t want to be that guy.

By keeping the money away from me, it prevents me from splurging on the things I don’t really need. It forces me to remain responsible by not spending that money. The fact is that it’s not the smartest financial option because you’re not collecting any interest on that money, but it’s better than spending it all. Don’t get me wrong though. I have already prepared my taxes online using TaxAct. All I have to do is click submit and be done with it.

Are You Financially Responsible?
However, more people are become more and more financial responsible with their money, perhaps due to increasing number of personal finance blogs such as MoneyGreenLife. People are becoming more educated in personal finance and realizing that being in debt sucks and increasing savings rocks! The average refund in 2011 was more than $3,000 and it won’t be much different this year. More people have personally declared that this year, they are planning to pay down their debt with their refund, while only a few percentage are planning to splurge on a big purchase such as a new TV or iPad or something like that.

If you’re planning on using your refund to pay down your debts, then go right ahead and file ASAP. Otherwise, until you have proven to yourself that you have shown financially responsible qualities, hold off filing until later so you don’t end up spending it all tomorrow.

What do you plan to do with your refund this year? When are you planning to file?

photo: 1099 Form from TDAmeritrade, Charles

shanendoah@the dog ate my wallet February 23, 2012 at 3:20 PM

We’re getting over $3,000 back this year, which, considering we expected to have to pay taxes, is kind of a nice bonus. We’ve decided that we each get to add $250 to our allowance funds, and that the rest will go into savings to bump up our house fund or pay for other long term savings goals.
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Daisy February 23, 2012 at 8:00 PM

That’s an interesting approach. I don’t know if I’ll get any moolah back this year – we’ll see. I sort of doubt it since I didn’t pay much in taxes anyway because I can still claim tuition tax credits.
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UltimateSmartMoney February 23, 2012 at 10:37 PM

Interesting point of view… I haven’t filed because I don’t want to spend hours trying to get the numbers accurate even though I will get a decent money back. I should file soon.
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Super Frugalette February 24, 2012 at 1:29 AM

We owe…but not for lack of planning, on account of an unexpected bonus. I do our tax planning every year and work to have us break even. If we did get a bonus…it would find a happy home in our savings account.
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Christopher February 24, 2012 at 11:19 PM

This is part of the reason I started my blog. If i am posting in the public forum for everyone to see I is harder to lie. I had been lying to myself and expecting these big returns like you. When i should have been saving or putting the money to use in some investment vehicles.

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