Comments for If You're Getting A Refund, File Whenever You Feel Like It

If You're Getting A Refund, File Whenever You Feel Like It

2007-04-16T23:22:05Z

Kiplinger's says that if you're getting a refund this year, you don't need to stress about filing on-time.

That's because the fine for missing the deadline is a percentage of tax owed. Zero divided by anything is zero.

So laugh it up, refundees. Play some more Legend of Zelda or reorganize your shoelace collection.

You should still file, eventually, but if it's a choice between running all the red lights to make it to the post office on time and filing late, choose the latter. — BEN POPKEN

Taxes -- Buy More Time [Kiplinger's]

Comment from synergy on 2007-04-21

2007-04-22T02:55:56Z

I agree with previous comments. File the first week of February and put your return, if any, into your savings account. Better you keep the interest than the government. But even better, as one person said earlier, make as good of an estimate as possible of how much of your paycheck is taken that'll add up by Dec 31 to the right amount of taxes owed for the year and you'll be maximizing that money all year long. My husband and I do this and come pretty close to the exact amount every year.

Comment from Trackback on 2007-04-17

2007-04-17T16:51:50Z

As I noted yesterday, it’s easy to file a tax extension. However, you still have to figure your taxes and pay the amount due if you want to avoid interest and late fees. But what if you’re expecting a refund?

Comment from ScramDiggyBooBoo on 2007-04-17

2007-04-17T15:10:31Z

@tadowguy: The reason i filed late was because I had just brought my wife to the US and i had to get her social security number to file. I guess i could have filed an extension though.

Comment from Gizmodo on 2007-04-17

2007-04-17T06:58:01Z

@arelys521: you should have your job automatically deposit a % of your earnings to a separate online savings account (e.g. HSBC) where you can earn over 5% interest instead of giving it to the govt for free for the year. then use all that money you saved to go on an even better vacation (or put it in 401k/IRA)

i filed a federal extension last week (was out of town for 4 months and didn't have all of my 1098/1099/W2/etc. in order) even though i'm due refunds from federal and state. just wanted to be on the safe side i guess. a lot of people forget to file state extensions b/c only a some of them extend the federal extension automatically - that's where people get hit with penalties.

Comment from purkinje on 2007-04-17

2007-04-17T06:25:00Z

Also, you've got until tomorrow to file an automatic extension with the IRS. Bear in mind that it's just a filing extension -- if you owe money, your payment still needs to be mailed in on time.

Comment from arelys521 on 2007-04-16

2007-04-17T02:40:08Z

I guess I don't understand why everyone thinks it's so awful to give a "free loan" to the government. I mean, I would have just frittered it away if I'd gotten that money in my paycheck. This way I can put a big chunk in my savings account (ha, yeah right, I'm going on a vacation), and our debt-riddled government got a little mini-booster from me. Doesn't seem so bad...

Comment from GiselleBeardchen on 2007-04-16

2007-04-17T01:40:27Z

"So laugh it up, refundees. Play some more Legend of Zelda or reorganize your shoelace collection."

---and write yourself a moron certificate for letting the government hold and make money off of your money!

Comment from Starfury on 2007-04-16

2007-04-17T00:38:07Z

I get a refund on my Federal each year so I file early, by mid February. I don't see the point in putting it off until the day before they're due. I did have to pay the state a few hundred dollars, THAT wasn't mailed until the end of March.

Comment from pestie on 2007-04-16

2007-04-17T00:11:34Z

I didn't file my taxes for about 5 straight years at one point. I finally decided it was time to do so, filed 5 years at once, and since I was getting a refund for each of those years, I didn't pay anything in fines, interest or penalties. I just filed and that was that. And I didn't become any sort of audit magnet or anything either.

Comment from revmatty on 2007-04-16

2007-04-16T23:57:40Z

It's not really the fault of the government if you overpay. Blame your employer (and also yourself) for not withholding the proper amount. Sure, it's a bit more complex than that if you itemize etc etc. But the government doesn't decide how much to withhold from you paycheck. Your employer does. And you have the option to ask your employer to increase or decrease your withholding.

Comment from silenuswise on 2007-04-16

2007-04-16T23:52:39Z

ElizabethD and raccettura already beat me to it: any refund you get was essentially a free loan made by you to the Feds and your state government. Very generous of you, refundees. Now excuse me while I "laugh it up" adding up my capital gains from the money I saved by not overpaying taxes throughout the year.

Comment from tadowguy on 2007-04-16

2007-04-16T23:52:31Z

@ScramDiggyBooBoo: Some of the rules are pretty simple. File on time is rule number 1.

Comment from BMR on 2007-04-16

2007-04-16T23:52:17Z

really, why would you want the government to have your hard earned money for one second longer? they've already screwed you by overtaxing you!

Comment from tadowguy on 2007-04-16

2007-04-16T23:51:56Z

Did people really not know this?

Comment from digitalgimpus on 2007-04-16

2007-04-16T23:34:30Z

Actually not 100% true.

Your fine is:

int_rate * refund

You're losing potential interest earned on that refund (the Gov collects it). So you're still being fined. Just indirectly.

Comment from DaveInTheCorn on 2007-04-16

2007-04-16T23:30:12Z

However, don't forget, you have three years from April 17 to file for your refund. Also, if you haven't filed past returns where you might be due a refund, you have three years to file those...

Comment from DeleteThisAccount on 2007-04-16

2007-04-16T22:59:55Z

I've come to the conclusion that history has stopped progressing. Every year there are the same stupid stories of people rushing to file their taxes as the last minute and post offices staying open until midnight, just as there's a rush of people buying plywood during hurricane season in Florida.

Comment from ElizabethD on 2007-04-16

2007-04-16T22:57:37Z

Of course, that means instead of *you* earning interest on your tax refund, Uncle Sam will be doing so instead.

Comment from homerjay on 2007-04-16

2007-04-16T22:57:31Z

If you know you're getting a refund, doesn't it stand to reason that you've already completed your taxes in order to find that out?

Comment from ScramDiggyBooBoo on 2007-04-16

2007-04-16T22:47:54Z

I dont know about all the rules and what not, but i was charge something like 15 bucks for filing 2 days late last year!!