Wednesday, February 6, 2008

Just filed my taxes

So, I just finished filing my 2007 taxes and am happy to report that I am getting a federal refund in the amount of $1323. In Washington state we don't file state taxes. I know buying my house helped a lot and am curious to see what the taxes look like next year when I don't have all the closing costs and things to include. I know the interest deduction will still make a big difference, I'm just not sure yet if I should adjust my withholding. I guess I will see how it goes for 2008 and then decide.

Now, what should I do with my refund? I am thinking that I will put most of it into my savings as I am currenly trying to build that up to $10,000, possibly $12,000 before fully funding my Roth IRA. I am currently contributing to the maximum match on my employer sponsored Simple IRA. But I also think I might take $100 or so of it and have some fun, or buy myself some new clothes. I am in desperate need of some jeans.

Any suggestions?


Escape Brooklyn said...

Congrats on the great refund! I read recently that for every $2,500 you get back as a refund you can add one exemption.

You definitely deserve a treat and spending $100 on something fun like new jeans is well-deserved! Then you can do something sensible (and boring...) with the rest. ;)

Actually, now might be a good time to just plug it all into a Roth IRA since the markets have dropped so much - buy low, right?

Lilo said...

You should certainly spend some $ on yourself. You deserve it! Now if I could only get my taxes done. Do you use any software to do your taxes? Or do you do it manually?

Canadian Saver said...

I'm voting too that you use some of that refund for something justs for you :-)

Clemencia said...

Wow, $1300 worth of refund is definitely something to celebrate! What did you end up doing with the $1300? Putting the majority of it into your savings was the better idea. Did you get bigger refunds in the following years?

++ Clemencia Summers

Parris Moretti said...

WOW, that’s a big refund! Congratulations on that! It’s a good thing you gave your taxes enough time, or you may not have found that much refund. What did you end up doing with the refund? I would have voted to save the majority of it and set aside some of it for you.

Parris Moretti

Harley Mcgowan said...

Congrats on the tax refund! Have you tried spending it on an “all-expenses” paid vacation? Getting tax refunds doesn’t have to be all work. Recharge, relax, go on a nice private getaway! Visit those places you’ve always dreamt of visiting. Spending money on yourself and your well-being is money well-spent.

Harley Mcgowan