I'm doing it wrong. Got $10,600 back on my tax return

[Red Squirrel]

Wow that's awesome! If you have any major renovation projects to do, now's the time. Or just put it into an investment of sorts. I got $3,700 this year. Think I'm going to use it to get central air conditioning. It will at least cover a large chunk of the cost. We don't get a work bonus anymore, so tax return is now my bonus. Going to look into buying more RRSPs this year so I can get a even better return. If I was really smart I'd take this return and buy all RRSPs with it... But it's nice to be able to use the money NOW!

 

[Vdubchaos]

to get a lower interest rate. the break even point is like 4 or 5 years, which we plan on being in this house for at least that long.

and no way in hell would i ever live by your rules lol.

You disable yourself from refinancing OR moving (as it make "paying for points" worthless/waste).

Also, remember that interest is STILL a write off (although there have been talks about that changing hehe).

So the more interest you pay, the more you can write off. READ: your tax return would've been higher each year

In general (although it does vary) you want to keep your up front costs down as much as possible.

 

[purbeast0]

You disable yourself from refinancing OR moving (as it make "paying for points" worthless/waste).

Also, remember that interest is STILL a write off (although there have been talks about that changing hehe).

So the more interest you pay, the more you can write off. READ: your tax return would've been higher each year

In general (although it does vary) you want to keep your up front costs down as much as possible.

not sure what the hell you are telling me any of this for. did i mention that i didn't know any of this information or something?

 

[Red Squirrel]

You disable yourself from refinancing OR moving (as it make "paying for points" worthless/waste).

Also, remember that interest is STILL a write off (although there have been talks about that changing hehe).

So the more interest you pay, the more you can write off. READ: your tax return would've been higher each year

In general (although it does vary) you want to keep your up front costs down as much as possible.

Mortgage interest can be claimed on taxes? How does that work?

 

[Vdubchaos]

Do you try to be wrong in every post you make?

Points are a calculated risk/reward that are heavily dependent on the amount financed, LTV ration, and how long you plan to be in the property. If you have a plump down payment that gets you out of PMI, plan to be in there a while and a larger loan (Say $300k+) then points can easily pay for themselves.

Thanks for the lesson there teach....I already know.

No one really knows how long they will stay at their property....it's simply a guess. It's good to be cautious. Also paying off your principle early would most likely be more useful with the money one would use for points.

And as far as "interest free loan to the gubment"...I don't think the whopping $15 in interest (assuming typical .25 % a credit union savings account currently yields) he lost on that $10k is going to cost him any sleep.

Assuming the Government returns it....or doesn't make a mistake.

SInce they are WELL known for NOT balancing their budgets properly and simply printing money....time will come.....

I like to go buy "don't borrow money you ever expect to see again"

 

[EagleKeeper]

You disable yourself from refinancing OR moving (as it make "paying for points" worthless/waste).

Also, remember that interest is STILL a write off (although there have been talks about that changing hehe).

So the more interest you pay, the more you can write off. READ : your tax return would've been higher each year

In general (although it does vary) you want to keep your up front costs down as much as possible.

so if you pay an extra $1000 interest; you are not saving $1000.

You are saving your tax bracket *$1000

At most $350

Spend an extra $1000 to get a credit of $350
that is $650 in the hole.

Points are deductible in the first year (no refinancing) and forces a lower rate.

 

[ultimatebob]

I ended up owing $4,000 this year because both my wife and I lowered our withholdings when we got married. You bastard!

 

[Peter Nixeus]

If you have a sales job or any job that pays commission or commission + Salary, your commission is automatically taxed at the max tax rate because commission compensation is variable. If your total annual income does not hit the max tax rate bracket but at a lower tax precentage bracket, you get back what is overpaid... I received a few $10k+ refunds...

 

[grohl]

Paying about 10 grand

 

[Rhezuss]

LOL! I got 79CAD back this year...

 

[Aikouka]

I owe the Federal government $200 and I'm receiving about $180 from Alabama. So, I about break even.

 

[acheron]

And as far as "interest free loan to the gubment"...I don't think the whopping $15 in interest (assuming typical .25 % a credit union savings account currently yields) he lost on that $10k is going to cost him any sleep.

Time value of money is about more than interest.

Anyway, owed a bunch this year, which is ok, and it beats last year when I owed way too much and had to pay a penalty, which was stupid of me.

 

[HardcoreRobot]

Mortgage interest can be claimed on taxes? How does that work?

in the US, you can claim interest paid on your residence as a deduction. for most homeowners this nets a larger deduction than the standard. the government did this to encourage home ownership. in reality, it just made housing more affordable, which drove up house prices, but i digress.

 

[vi edit]

in the US, you can claim interest paid on your residence as a deduction. for most homeowners this nets a larger deduction than the standard. the government did this to encourage home ownership. in reality, it just made housing more affordable, which drove up house prices, but i digress.

You've got to have a pretty good sized home mortgage to get past the standard deduction. What really pushes it over the edge for me is property taxes. My property taxes are almost $10,000 a year. Combine that with a mortgage deducation and child care and it tips the scales back in my favor most years.

 

[darkxshade]

I know it's overpaid tax but I do rather enjoy getting sizable tax refunds. It's like and 2nd christmas.

 

[cheez]

That's a lot of money for a tax refund. Can I have 10% of that? I need to buy some cables. I'm broke.

 

[Red Squirrel]

Paying about 10 grand

Ouch! That blows. I hope they have a payment plan of sorts, if not, time to re-mortgage.

in the US, you can claim interest paid on your residence as a deduction. for most homeowners this nets a larger deduction than the standard. the government did this to encourage home ownership. in reality, it just made housing more affordable, which drove up house prices, but i digress.

Hmm interesting, I thought maybe I was missing out on something. I guess my tax person would have told me about it though. She's usually good for making sure I'm not missing anything I can claim.

I know it's overpaid tax but I do rather enjoy getting sizable tax refunds. It's like and 2nd christmas.

That's how I see it. Rather get a return than have to pay. I do everything I can to maximize my return. Without being an accountant and being very good at math there's not really any easy way of knowing how to break even, so it's better to overshoot than to undershoot.

 

[Red Squirrel]

double post - delete