Do you use your tax refund to cruise.

[ldubs]

Wow I was just trying to post something topical for the date yesterday and I like to thank all of you for your money advice. Just for the record We don't ''depend '' on a refund just use it.I have in the past posted on ''how do you afford so many cruises threads'' and told people my method house paid off (small house smaller bills) car paid off and 0 creditcard bills or debt at all .So to those that think I should not be cruising truly Thank you for your input.

 

Dolittle, your question was OK and I am sorry that things got out of hand. I did not like some of the responses and was concerned that my post was viewed the same as those. Again, I did not intend to criticize in my post. Thing is, like a lot of other choices, this one is yours to make. Fact is, even though I try hard, I find it impossible to calculate my income tax bill with a high degree of accuracy. Because I'm paying taxes on income outside of regular paychecks (which I do not receive), this is something I have to do. If I was within $500 one way or another, I would consider it a bulls-eye! I have never been that close.

 

House paid for, cars paid for, no credit card debt -- that is fantastic. Tough to do when you are young and starting out. When and if you finally get there, it is a wonderful feeling.

[momofmeg]

Wow I was just trying to post something topical for the date yesterday and I like to thank all of you for your money advice. Just for the record We don't ''depend '' on a refund just use it.I have in the past posted on ''how do you afford so many cruises threads'' and told people my method house paid off (small house smaller bills) car paid off and 0 creditcard bills or debt at all .So to those that think I should not be cruising truly Thank you for your input.

 

We claim both dependents on jobs so we do the best to get as little refund as possible. If there comes a point where we have to pay every year I guess we will just do that. Lol! with our house getting paid off and hubby close to retirement I am sure we will at some point unless he gets a job that pays much less. BTW- I know you usually cruise several times a year so that would surely be a hefty refund lol! I did not think that.

 

However, when we get our taxes back we do usually apply that money toward something and that is the way I took your post. Often it is a cruise. This year we are helping our daughter with her medical bills. She will pay us back in time-but lol! that does slower the vacation budget!

[momofmeg]

Sadly, my tax refunds are getting scarcer and scarcer. We did get a small one this year and unfortunately, it will be sitting in the bank collecting a paltry amount of interest before we use it to make the first of probably 10 tuition payments to Auburn University!

 

That is what happens when most of us biggest tax shelter, our home, gets paid down. I'm okay with that as our goal is to have it paid off when hubby retires. We are too old to buy a bigger house for a tax shelter now.

[momofmeg]

We claim both dependents on jobs so we do the best to get as little refund as possible. If there comes a point where we have to pay every year I guess we will just do that. Lol! with our house getting paid off and hubby close to retirement I am sure we will at some point unless he gets a job that pays much less. BTW- I know you usually cruise several times a year so that would surely be a hefty refund lol! I did not think that.

 

However, when we get our taxes back we do usually apply that money toward something and that is the way I took your post. Often it is a cruise. This year we are helping our daughter with her medical bills. She will pay us back in time-but lol! that does slower the vacation budget!

 

Actually I said that wrong. We claim NO dependents on jobs. Duh me and I am the one that took a tax course to help us do what was best.

[buggins0402]

Actually I said that wrong. We claim NO dependents on jobs. Duh me and I am the one that took a tax course to help us do what was best.

 

you might have had it right the first time - no dependents claimed on your w-4 means more w/h - larger refund. If I read your original statement correctly...

[momofmeg]

you might have had it right the first time - no dependents claimed on your w-4 means more w/h - larger refund. If I read your original statement correctly...

 

Lol! You are right. That is what we do. I used to do our taxes. I don't no more-too old now and my brain is not quick enough.

[Hawaiidan]

Those of you who claim you got a refund actualy just got back your own money, except money you loaned free the govt for a year.

 

A better plan: file for quarterly tax payments and get off withholding entirely you can do this if your retired an ahave a retirement income

 

Now as to the future... Set up a specific checking account an every month eposit X dollars, Refunds, sales from things... what ever income source.

 

Then get an airline card like United or Marriott Hotel, and set that credit card to be "auto Pay" in full each month. Husband an wife each get a card separate from each other and each will have 35,000 miles or 2 nights free at a A Marriott + 60,000 HOTEL POINTS good for another 3 to 4 hotel nights.

Then you earn free flights or Hotel rooms for every dollar you spent....

 

This new account and credit cards are to be used only for travel and entertainment. You save for a few years to get it going. Having it separate means you know exactly your budget. Second, your travel or entertainment will not impact your day to day finances. Third as I said, your travel an entertainment will earn you free travel.... better than interest. SO get organized like this... Pay for your cruise with the card and all related entertainment, and a bonus get free flights to get to the cruise an hotels t stay before or after...also a free benefit.

 

I have been using this system now for 15 years.... have 5 figures in the travel account and over 400,000 miles and a weeks worth of stays in the "bank" so to speak..........

 

Consider that !!

[JABrown104]

WHY YES! That is the plan!!

We are putting down a deposit, but we will use tax money to pay off the rest. Of course if for some reason we couldnt use tax money for it, then we would just save some money each month for the trip!

[PTMary]

Those of you who claim you got a refund actualy just got back your own money, except money you loaned free the govt for a year.

 

A better plan: file for quarterly tax payments and get off withholding entirely you can do this if your retired an ahave a retirement income

 

Now as to the future... Set up a specific checking account an every month eposit X dollars, Refunds, sales from things... what ever income source.

 

Then get an airline card like United or Marriott Hotel, and set that credit card to be "auto Pay" in full each month. Husband an wife each get a card separate from each other and each will have 35,000 miles or 2 nights free at a A Marriott + 60,000 HOTEL POINTS good for another 3 to 4 hotel nights.

Then you earn free flights or Hotel rooms for every dollar you spent....

 

This new account and credit cards are to be used only for travel and entertainment. You save for a few years to get it going. Having it separate means you know exactly your budget. Second, your travel or entertainment will not impact your day to day finances. Third as I said, your travel an entertainment will earn you free travel.... better than interest. SO get organized like this... Pay for your cruise with the card and all related entertainment, and a bonus get free flights to get to the cruise an hotels t stay before or after...also a free benefit.

 

I have been using this system now for 15 years.... have 5 figures in the travel account and over 400,000 miles and a weeks worth of stays in the "bank" so to speak..........

 

Consider that !!

 

Since this has become a contest of who has the better plan, here is mine, which is even better than yours :D:

 

Just overpay and have the refund deposited automatically into your vacation fund, with zero effort needed - no special account to be set up, no extra deposits to be made, no money to be moved around. And instead of a frequent flyer or hotel specific card, just op for the rewards points option on your normal credit cards (my husband and I get up to three points per dollar spent depending on what is purchased). When it's time to cruise, do a one time cash out of the points and use it for whatever you want without being forced to stay in a particular hotel chain, or fly a particular airline. And whenever extra funds become available, manually do those deposits into the account as well.

 

As many people will say when gifts for crews is discussed - Cash Is King! I much prefer to have the convenience of using cash anywhere and for anything over dedicated hotel points or airline miles.

 

We also maintain five figures in our vacation account. And the government even helps make the deposits into that account for us when our refund is issued!

Edited April 17, 2014 by PTMary

[ducklite]

Those of you who claim you got a refund actualy just got back your own money, except money you loaned free the govt for a year.

 

 

 

A better plan: file for quarterly tax payments and get off withholding entirely you can do this if your retired an ahave a retirement income

 

 

 

Now as to the future... Set up a specific checking account an every month eposit X dollars, Refunds, sales from things... what ever income source.

 

 

 

Then get an airline card like United or Marriott Hotel, and set that credit card to be "auto Pay" in full each month. Husband an wife each get a card separate from each other and each will have 35,000 miles or 2 nights free at a A Marriott + 60,000 HOTEL POINTS good for another 3 to 4 hotel nights.

 

Then you earn free flights or Hotel rooms for every dollar you spent....

 

 

 

This new account and credit cards are to be used only for travel and entertainment. You save for a few years to get it going. Having it separate means you know exactly your budget. Second, your travel or entertainment will not impact your day to day finances. Third as I said, your travel an entertainment will earn you free travel.... better than interest. SO get organized like this... Pay for your cruise with the card and all related entertainment, and a bonus get free flights to get to the cruise an hotels t stay before or after...also a free benefit.

 

 

 

I have been using this system now for 15 years.... have 5 figures in the travel account and over 400,000 miles and a weeks worth of stays in the "bank" so to speak..........

 

 

 

Consider that !!

 

 

Those of us who do a lot of business travel have no need for additional miles and points. I also don't need a special travel account. When I want to travel, I use my savings. Last year's vacation was so inexpensive due to all the hotels being covered that I used my checking account.

 

The one size fits all approach that some are trying to offer might work for them, but it's laughable to many of us.

[marco]

What I just had to pay in taxes would have bought a nice cruise.:mad:

 

What I had to pay in taxes could have bought the ship!!!!!!!!!!!!!!!!!!!!!!!!!! (Well.....maybe not quite)

[CruisingAlong4Now]

It still means that you have made an interest free loan to the government - even if the refund is $520, you have still been out an average of $260 for the "whole year". The topic here is about using a refund to pay for a cruise - which means it is likely to be a lot more than $520. Additionally, many of those who do not take the trouble to closely figure their estimated tax and wind up having too much withheld as an interest-free loan also wind up paying interest on outstanding credit card debt - meaning that they are being hit twice for their carelessness.

 

Okay - so assume I have over-withheld $1000 for the year. On average, I have "lent" the government $500 for the whole year since they don't have the money for the whole year, just half the year on average. At the paltry 1% paid on savings accounts, I have foregone $5 in interest. I consider this a very small convenience fee for the automatic savings and refund services the government is providing.

 

It's the easiest way to save and it replaces the old Christmas Clubs!

 

Now if interest rates were to rise to 1981 levels of 15%, that's another story.

[Warm Breezes]

Okay - so assume I have over-withheld $1000 for the year. On average, I have "lent" the government $500 for the whole year since they don't have the money for the whole year, just half the year on average. At the paltry 1% paid on savings accounts, I have foregone $5 in interest. I consider this a very small convenience fee for the automatic savings and refund services the government is providing.

 

It's the easiest way to save and it replaces the old Christmas Clubs!

 

Now if interest rates were to rise to 1981 levels of 15%, that's another story.

 

Not only is the interest lost miniscule, you also have to consider the cost of "taking the trouble to closely figure your estimate". Whether it be your time or you pay someone else to do it, it is a cost and I think in many instances that cost would be more than the interest you would earn by having a close estimate. IMHO its just not worth my time. Some years I have had to pay some in. Most years I get some back. The amount is never more than a couple thousand. Interest on that is not enough to waste my time on.

[momofmeg]

Those of you who claim you got a refund actualy just got back your own money, except money you loaned free the govt for a year.

 

A better plan: file for quarterly tax payments and get off withholding entirely you can do this if your retired an ahave a retirement income

 

Now as to the future... Set up a specific checking account an every month eposit X dollars, Refunds, sales from things... what ever income source.

 

Then get an airline card like United or Marriott Hotel, and set that credit card to be "auto Pay" in full each month. Husband an wife each get a card separate from each other and each will have 35,000 miles or 2 nights free at a A Marriott + 60,000 HOTEL POINTS good for another 3 to 4 hotel nights.

Then you earn free flights or Hotel rooms for every dollar you spent....

 

This new account and credit cards are to be used only for travel and entertainment. You save for a few years to get it going. Having it separate means you know exactly your budget. Second, your travel or entertainment will not impact your day to day finances. Third as I said, your travel an entertainment will earn you free travel.... better than interest. SO get organized like this... Pay for your cruise with the card and all related entertainment, and a bonus get free flights to get to the cruise an hotels t stay before or after...also a free benefit.

 

I have been using this system now for 15 years.... have 5 figures in the travel account and over 400,000 miles and a weeks worth of stays in the "bank" so to speak..........

 

Consider that !!

 

We pay our electric/cable/phone, etc. by American Express and then pay that off monthly so we do not pay interest. I know some people buy their groceries on their CC to get skymiles. I don't as I am afraid I will lose track of what I have put on it and over spend and then either have to pay interest on the card or else did into my savings.

 

What other people do I really do not care. Yes, we build up a nice bit of skymiles but it really is not that important to me. I have what I need and normally get to take a nice trip at lest every other year.

[jamessemaj]

It still means that you have made an interest free loan to the government - even if the refund is $520, you have still been out an average of $260 for the "whole year". The topic here is about using a refund to pay for a cruise - which means it is likely to be a lot more than $520. Additionally, many of those who do not take the trouble to closely figure their estimated tax and wind up having too much withheld as an interest-free loan also wind up paying interest on outstanding credit card debt - meaning that they are being hit twice for their carelessness.

 

The tiny interest foregone as a result of overwithholding is not in the same league with carrying a credit card balance. Carrying over a balance on a credit card and paying interest on it is major league financial disaster, time for serious financial counseling. I am guilty of overwithholding and don't see it as a big problem, but never ever have I carried a balance over on a credit card and even the thought of it horrifies me. Anybody in that financial state would do well to use any refund to help get their finances in order rather than apply it to a cruise.

Edited April 17, 2014 by jamessemaj

[olemissreb]

That is what happens when most of us biggest tax shelter, our home, gets paid down. I'm okay with that as our goal is to have it paid off when hubby retires. We are too old to buy a bigger house for a tax shelter now.

 

Ours will actually be paid off next year, but I think we may be able to write off some of our sons tuition - not sure yet and have to look into that a little closer. If not, well at least we can use the money from our mortgage payment to help with the college bill. :)

[navybankerteacher]

The tiny interest foregone as a result of overwithholding is not in the same league with carrying a credit card balance. Carrying over a balance on a credit card and paying interest on it is major league financial disaster, time for serious financial counseling. I am guilty of overwithholding and don't see it as a big problem, but never ever have I carried a balance over on a credit card and even the thought of it horrifies me. Anybody in that financial state would do well to use any refund to help get their finances in order rather than apply it to a cruise.

 

Of course the interest forfeited by overpaying federal taxes is minuscule, but a substantial number of the 80% of taxpayers who get refunds must be among the 40% of Americans who carry credit card debt. This is an interesting anomaly.

[6rugrats]

Never; usually I have to pay anyway.

[momofmeg]

Ours will actually be paid off next year, but I think we may be able to write off some of our sons tuition - not sure yet and have to look into that a little closer. If not, well at least we can use the money from our mortgage payment to help with the college bill. :)

 

Good for you!

[fortinweb]

That is what happens when most of us biggest tax shelter, our home, gets paid down. I'm okay with that as our goal is to have it paid off when hubby retires. We are too old to buy a bigger house for a tax shelter now.

 

Ours will be paid off in just over three years. No more monthly house payments. That will mean we instantly get a nearly $20K annual increase to our available spending money! Woohoo! With that extra spending money, I can overlook a loss of a relatively minor tax shelter, which has been getting smaller and smaller as more of the principal on the mortgage is paid off.

Edited April 17, 2014 by fortinweb

[esimon]

sounds like a great idea but I don't get a tax refund LOL

[momofmeg]

Ours will be paid off in just over three years. No more monthly house payments. That will mean we instantly get a nearly $20K annual increase to our available spending money! Woohoo! With that extra spending money, I can overlook a loss of a relatively minor tax shelter, which has been getting smaller and smaller as more of the principal on the mortgage is paid off.

 

I know lol! I suspect at some point we will being paying taxes instead of getting a refund

[no1racefan1]

I'm going to ignore all of the debate happening in this thread right now and answer the OP with--sure, why not?

 

We usually get a refund--it's less and less each year (I'm sure in a few more years we'll be paying) and we always use it for a 'special' purchase. This year, we put it in our cruise fund for spending money. Last year, I used it to help pay for braces on my teeth.

[navybankerteacher]

I know lol! I suspect at some point we will being paying taxes instead of getting a refund

 

Really?

[ducklite]

I know lol! I suspect at some point we will being paying taxes instead of getting a refund

 

 

It's one of the reasons we are in no rush to pay off our home. We are making more on our investments than what we are paying in interest, and other than donations and business use of the home credits, the mortgage interest is our only deduction. I suspect that after we retire we will end up paying every year.

Edited April 18, 2014 by ducklite