Wow. So far, I am a big fan of Tax Cut. I was able to set it up and enter the 4 W-2s we do have within a half hour. It was so easy, no adding up totals or anything like that. No practice form…just check each box and copy in the number.
The best news is that it currently shows $1200 due in Federal refund (we both opted for conservative withholding since we didn’t know what getting married would bring). And that’s without the last W-2.
Where is this going?
Straight to the car! In fact, since we should be getting the rebate as well as the refund…we may make HUGE progress on the car payoff. Yay!
Depending on how much we end up with, I’ve thought of a few other things (I didn’t expect over $1000). First, it would be nice to try eating out once. We don’t do that much and DC has a lot of fine restaurants. I’m not thinking anything crazy, but Clever Dude was telling me about this great Ethiopian place I’d like to try.
Second, we might put a little of it into the Roth IRA. That’s sort-of stimulating the economy, since it’s investing in companies, right?
At our age, the power of compounding is pretty strong, so I don’t want to neglect it while we pay down the debt monster. As paidtwice said this week, if you save $2000/year through your twenties and stop when you’re 30, the money will compound to more than if you start saving $2000/year when you’re 30. I’m 22. That’s good.
And in other tax news, Hank wants to know what you’re doing with your tax refund. He has some prizes which may interest users of Entrecard, Amazon, and those hoping to do their taxes at the last minute. 😉