Apr 6th, 2008
Ask the Readers: Do You Prefer to Owe or Be Owed?
We’re talking taxes here, of course. When I was a part time worker and full time student, I looked forward to April 15, since I got a refund on some (but not all) of my paid taxes.
Things have changed in some ways, but not others. I haven’t received a refund in years; this year I need to make payments to the state and the feds of close to $600. While more money out of my pocket never thrills me, I also realize that if I get a big refund, it’s like I lent that money to the government interest free. If I end up paying, it’s like the government lent the money to me interest free–as long as I don’t wind up paying a penalty.
So, on logical if not emotional reasons, I prefer when I owe on April 15 (and for those of us in Hawai’i, April 20) rather than being owed on those same dates.
How about you?
I prefer getting money…but I prefer most not getting much money. That way it’s enough to cover anything I owe, but I didn’t lend them that free money either. It’s just simpler and sometimes peace of mind is the best.
Mrs. M,
Peace of mind is certainly worth a few bucks (or more than just a few), for sure. Still waiting to hear if others chime in on this…
I’m the same way. I prefer to get a handful of dollars back, but not so many that it’s a massive free loan to the government.
I would prefer to owe money. I always have enough put by for emergencies so I would be able to pay it, it wouls also mean that I could be getting the interest on the money rather than the IRS getting it.
I also prefer to owe money. I actually wish I owed more than I did… like the most I can owe without penalty. But I’ll do what I can.
[...] While more money out of my pocket never thrills me, I also realize that if I get a big refund …http://www.uncommon-cents.net/2008/04/06/ask-the-readers-do-you-prefer-to-owe-or-be-owed/Pinwiz.netBy the time I got done, I found that I was getting an over 600 refund from the feds but [...]