0% Interest Loan from the IRS

[tfinch2]

Originally posted by: necine
For me right now I'd rather have a higher refund. That boost comes right at the time tuition is due for the spring. If I were in your position I'd claim "1" -- myself.

That is the dumbest thing I've ever heard. So basically your saying money in money out, and you have no ability to save?

 

[IHateMyJob2004]

Gerneally a good idea.

Money sitting in your savings account at 0.5% is better then giving it to the IRS for a rate of 0%.

Bad idea .... if you cn not save money. I don't have a budget, but don't waste money on needless crap. I could take more out, but hte way I look at it is that I get a big payment at the end of the year in one lump sum. I take those thousands and invest it in a good stock like BAC. This way, I'm not tempted to blow $200/month or whatever the amount is that I don't need. Then I invest it at the end of the year.

 

[GasX]

if you want an interest free loan from the IRS, set it up so that you owe $10,000 on April 15

 

[dullard]

Originally posted by: Mwilding
if you want an interest free loan from the IRS, set it up so that you owe $10,000 on April 15

If you are going to do that, be certain you have read and understood page 62, line 77 tax penalty. If you owe more than $1000 come tax time, and if that amount is more than 10% of your tax due, you may very well owe a massive penalty. Thus, to truely get a $10,000 free loan, you'd have to have a tax bill of $100,000 or more (Example: a single person with >$350,000 income in a year). I really don't think this applies to many ATOT posters.

There are two exceptions to that rule though, so if you meet either of them, you are set and ignore what I typed above.