What did/will you do with your return?

[ducky19]

Owed $699 this year - more than I'd like, but I still didn't give the government a loan! We got a state refund of $144, so that offsets it a little. I usually try to keep it within $300 either way, some tradeline sales and checking account bonuses tipped me over the edge this year. Will make a few adjustments and get it closer to my ideal window for 2018!

[dougules]

We are going to dump it into index funds the same as any other money we get.  Honestly I love seeing the spreadsheet tick up. 

If you're getting a refund it means you lost out on getting the returns off of that money.  You're better off to make it to where you're paying in at tax time.  It can be a hard target to hit when your passive income starts going up, though.  (It's a hard-knock life, right?)

[cheddarpie]

What did I do with my tax return? I filed it with the IRS like you're supposed to. Maybe you mean to ask what we're doing with our tax refund?

Aaah.  Thank you.  That's what I was waiting for.

Just want to emphasize this again. RETURN is the document you file with the IRS; REFUND is the money you get back if you overpaid. I won't be getting one this year. :)

[One Noisy Cat]

Buy some blue chip stocks with the combined $810 from state and feds. A lower amount than last year but I have already adjusted the withholding to pay the gubbermint less.

[FreshPrincess]

Paid off the car.  'Twas a good day.

[haypug16]

Not sure what we'll get this year. Last year was our first year filing as married plus with my Daughters Tuition we ended up with a big refund. Shame on us! Hopefully this year we did better but I did make a lot more this year so who knows. I'm sure I'll be making some adjustments by the end of April payroll.

I'll be dreaming about a nice vacation somewhere warm and sunny but in reality my half of whatever we get will go towards killing student loan debt so that I can get to Debt free sooner and then FIRE sooner which sounds better than a tropical vacation (at least enough so that I'm willing to forgo a big vacation until I'm debt free)

[dhc]

What did I do with my tax return? I filed it with the IRS like you're supposed to. Maybe you mean to ask what we're doing with our tax refund?

Aaah.  Thank you.  That's what I was waiting for.

Just want to emphasize this again. RETURN is the document you file with the IRS; REFUND is the money you get back if you overpaid. I won't be getting one this year. :)

Seriously. For a forum that's all about financial awesomeness, there sure is a lot of financial illiteracy on display in this thread.

More seriously, all of you getting large refunds are doing it wrong. I understand wanting to be close, so a small one is reasonable, but getting thousands of dollars back that you loaned the government at no interest instead of putting them to work for you means you're failing at this finances thing.

Our return isn't filed yet, since we owe just under the amount at which we'd start paying penalties (for once, it worked out perfectly!), and I see no reason to part with my perfectly good money until I actually have to.

[MrUpwardlyMobile]

What did I do with my tax return? I filed it with the IRS like you're supposed to. Maybe you mean to ask what we're doing with our tax refund?

Aaah.  Thank you.  That's what I was waiting for.

Just want to emphasize this again. RETURN is the document you file with the IRS; REFUND is the money you get back if you overpaid. I won't be getting one this year. :)

Seriously. For a forum that's all about financial awesomeness, there sure is a lot of financial illiteracy on display in this thread.

More seriously, all of you getting large refunds are doing it wrong. I understand wanting to be close, so a small one is reasonable, but getting thousands of dollars back that you loaned the government at no interest instead of putting them to work for you means you're failing at this finances thing.

Our return isn't filed yet, since we owe just under the amount at which we'd start paying penalties (for once, it worked out perfectly!), and I see no reason to part with my perfectly good money until I actually have to.

Many people have variable incomes that can’t really be predicted correctly and that results in over or under withholding.  It’s not illiteracy, it’s simply difficult to predict. 

[bryan995]

Refund!? 

We owe ~$9500 this year, which I am actually thrilled about!

Going to open a few new CC's, eat the 1.87% CC fee and earn anywhere from 10-15% back in sign-up-bonus points/miles.  Eyeing the SPG personal (spend $3000 get 25,000 points) or the CIC (spend $3000 earn $500).  Thanks to the fed we will be vacationing quite a few times this year, for almost free !

[PiobStache]

10k into one of our robo-investing accounts and the rest to pay for your Hawaii vacation.

[Imustacheyouaquestion]

More seriously, all of you getting large refunds are doing it wrong. I understand wanting to be close, so a small one is reasonable, but getting thousands of dollars back that you loaned the government at no interest instead of putting them to work for you means you're failing at this finances thing.

Seems a little harsh. In general, you should plan for a small refund or owing just under the penalty threshold. Variable income, large year-end bonuses (typically withheld automatically at a fixed percentage, regardless of how you've structured the rest of your tax withholdings over the year), dividend income, etc. are all reasons you might end up with a large refund and none of them mean you are "failing at finances."

[zolotiyeruki]

More seriously, all of you getting large refunds are doing it wrong. I understand wanting to be close, so a small one is reasonable, but getting thousands of dollars back that you loaned the government at no interest instead of putting them to work for you means you're failing at this finances thing.

Seems a little harsh. In general, you should plan for a small refund or owing just under the penalty threshold. Variable income, large year-end bonuses (typically withheld automatically at a fixed percentage, regardless of how you've structured the rest of your tax withholdings over the year), dividend income, etc. are all reasons you might end up with a large refund and none of them mean you are "failing at finances."

There's also "we have lots of kids, so even though our withholding was $0, we still get a refund."

[seattlecyclone]

Same thing I do with any other bit of money. It goes in my checking account, to pay any current bills. When the account grows more than a specified threshold, I buy some index funds.

[Mezzie]

We got a big return this year since we put so much away in tax-deferred accounts. We're going to do some home repairs, and then my husband gets to spend the rest on his artsy project. We'll adjust our withholding for next year.

I hope that's frivolous enough for you guys. :)

[kanga1622]

We owe both state and federal but kept it to a reasonable amount. If we ever do get a refund it gets set aside for crazy things like new shoes and school supplies for the kids.

[DreamFIRE]

Due to my brokerage investment dividends, I would owe if I hadn't had my company take an extra withholding than they would otherwise take for both state and federal.  Pretty consistently over my career, I've gotten returns of $100 to $200 - so little as to be inconsequential.  I just throw it in my checking.

[NorthernBlitz]

My return either goes to my fund current year's (1) property taxes or (2) rIRA contributions. I like to have the IRAs for the upcoming calendar and enough in savings for my current year property taxes by March.

[NorthernBlitz]

Return? lol.

Who in their right mind would loan the government their hard earned dollars at 0% interest? Surely not a mustachian.

It's not such a big deal if it's money you are keeping in cash anyway. The government gives you 0% and the banks give you ~ 1%. Sounds like most people's returns are small enough that the 1% on that money (not even 1% of the total return because most of it isn't at a 1 year term) doesn't really matter.

If interest rates were where they were in the 80s, this decision would matter more.

[kenner]

Given the US tax changes, I ended up doubling up on property tax payments and DAF contributions at the end of last year since it won't make sense to do it with the increased standard deduction this year...first time in a while that refund-from-federal isn't about equal to owed-to-state.  Into the investment account it will go, though.

[zeli2033]

Our tax refund went to finishing up 2018 Roth tax contributions. We made some adjustments as a newly married couple so we we will hopefully come in much closer to $0 for this year’s taxes.

[Raenia]

I filed this weekend, so I'll be getting a ~1k refund soon.  Higher than I wanted, but my work was slow to adjust, plus I had a raise mid-year, and a small bonus, and my HSA contribution wasn't deducted at payroll, and a few other things.  On the other hand, I'm getting $4 back from state, and my local was dead on for the first time ever.  I'll probably take my Fiance out for dinner (he was bummed about owing $300, even though he knows intellectually it's better to owe) then the rest will go into our home down-payment savings.

Next year is going to be weird, though, and I have no idea how much we'll owe/get back.  Between my work being slow to update withholding rates after the tax law changes, and getting married mid-year, and DFH selling a bunch of crypto 'investments' early this year, and having to report a foreign bank account... it's not going to be a fun filing.  He wants to hire someone just for one year, since it'll be unusually complex, I still want to try it myself first, but we'll see.