Over the past 3 years we have been adjusting our withholding due to retiring. We didn't know what our taxes would be like with partial years worked and the rest retired so for us it took having one full year of both of us retired to accurately adjust our withholding. That should happen now for this year. We can use the money better in our checks, but at the same time I want enough leeway so that we don't have to pay, being as we have no itemized deductions, but take the standard deduction instead. It is a peace of mind for me who does the taxes each year. E

Our govt bought in some new tax cuts/benefits a few months ago when the new budget came out that are retroactive so I understand about not knowing about refunds. We don't get our tax forms until Feb mostly because the law says that  they have until the end of Feb. to sent them out. Plus you have upto the end of feb to put money in a rrsp for tax deduction.

Ariana,

You should be able to get a good value on a truck - so many people are getting rid of theirs, due to high fuel prices. Happy vehicle shopping!

Taxes...H does ours. Once we had to pay out rather than cash a refund check . He freaked. It is not that we can't afford it, either, just that he hates the thought of possibly owing the go'vt and would rather get something back.

 Rolo,

Some people don't pay in as much as they get back in refunds due to EIC, Child Tax or the like. Others like ourselves don't know what our actual deductions are until the end of the year and it makes a difference on the bottom line when added in with the EIC or Child tax.

 It can be argued that one can take advanced EIC but I would worry about not estimating properly and end up owing.

 Brandy, we are the same as you. DH and I both self employed. I also hope that I have paid in enough.  DH income is very predictable but I never know with mine.If we have a refund, I tend to apply it to the next year. It just means making smaller payment through out the year. Babs

This year, my husband started off as an employee who carried some of his own work expenses. We have a couple thousand to deduct there while he also paid taxes. I haven't paid unemployment taxes on the work he does now as we estimated that what was paid in already covered it in addition to having high expenses we can deduct to lower liability. Then we get the standards and Child tax or EIC.

I am waiting to see what changes are made by the company to determine how to handle taxes in 2008.

rolo:

 Wow.  If you would have adjusted your withholding you would have had an extra $500 monthly.  That's a lot of $$$$$ to let the government use for free.

We usually break even, a few dollars give or take.   

I refuse to adjust my withholding! I've done that in the past and gotten stuck paying the government $500. No way.

This is the first time since the kids were in diapers that we were actually poor enough for the Earned Income Credit. That more than doubled the refund.

The rest comes from 18% Charitible contributions and side business deductions.

My refund came in today!  Here's how I think the breakdown of funds will go:

• $1025 to savings (this gives me an even $2K, which makes me so excited and proud; the first $1K has been there for 8 months now and I've not touched it, so the fact that there is more cushion is just so... peaceful.)
• $500 for the most needed crown (I'll save up for the other 2; the dentist agrees that they can wait)
• $200 to pay off DD's medical bills
• $200 on a GPS unit for my car (I am directionally challenged and starting in March I'll be exploring a lot of unfamiliar territory for my job.  Plus, if/when DH and I move this will help a lot.)
• $200 on the cats' yearly trip to the vet including all shots.  (Probably less than this, but I can't remember.)
• $50 for dinner at our favorite German restaurant when DH gets home next month

first of all, if you dont see it on check you dont miss it.  its just like something you never had.  and you have to have a lot of willpower to put that away yourself, especially when something breaks.  i had my taxes taken out 'married filing singly'  .  it was a lot more taxes taken out, but when tax time came i was getting my money in one lump sum [not little bits in paycheck] and i was stress free knowing i wouldnt be owing them at end of year.  then when you see your refund,  [i have no kids at home so no help there]  i would put most of it in savings and keep just a little out to treat myself.  people would say, why are you letting government use your money.  actually i was using them to keep my money from me so i wouldnt spend it.  works great.

karen kay:

people would say, why are you letting government use your money.  actually i was using them to keep my money from me so i wouldnt spend it. 

LOL LOL