Official 2010 Only Dumbasses Get Tax Returns Thread

[Yoshi]

Tax season is nearing, and morons all across America will be giddy to find out how much of their own damn money they get back from the federal government.

Why are they morons? Because they just got done floating the most inefficiently run organization on the planet an interest free loan for an average of six months (that's one half of one year, for those that are mathematically, as well as economically, impaired). Think of it as a gigantic EB preorder without getting the free but useless in-game item.

Tax refunds aren't like annual bonuses that many employers pay. That is truly additional money and cause for celebration. Tax refunds are a result of these people's money doing less for them. It is, in most cases, the worst possible scenario for that money from a present value standpoint.

If people increased their W4 form deductions and kept more of their money throughout the year, they could invest it or at least put it in a savings account. That 2% interest beats the 0% Uncle Sam gives every time. When the tax bill comes, they can then pay the full amount and still have any interest they earned in their account, where it will continue to compound. Wise investing can obviously return even more.

So why is giving the government an interest free loan only the worst case scenario in most and not all cases? Well, people could make bad investments. A return of -5% does not beat the 0% the friendly feds offer. Similarly, if those extra few dollars received in each pay check go straight to Burger King and the moron-in-question's gut, then that's not helping to pay the tax bill, to increase net worth, or to decrease the value on the bathroom scale.

So if self control or investment ineptitude are issues, then the goal should be to hit $0. Don't owe anything and don't receive a return. The most common method to reach this balance seems to be to have the state return (which is harder to avoid) match the federal bill. This method is not optimal, because people's money is still not working for them very much, but at least it's not completely suboptimal like getting a big return.

Remember kids, when you spend all year bitching about the government but let them borrow money from every paycheck, you're part of the problem. Don't be that moron.

[Finch]

If i want to read about bad investments, i'll look up your posts in the haul thread.

SO WHAT ARE YOU GUYS GETTIN'? I'M BUYING A PLAYSTATION 3!~!


just kidding! only an IDIOT would waste money on one of THOSE.

[BioMechanic]

The biggest problem with this, as far as the public is concerned, is that it makes far too much sense.

[Mman]

Yoshi is just jealous that I'm getting a tax return of $4,000 this year.

[YellerDog]

Here I am, trying to fund NASA's cocaine supply, and you're going to come in here and give me shit about it? No.


No sir.

[Swagger Jack]

I owe money :-(

[kingoffighters]

If you are really smart, you wouldn't have to pay any income tax to fund all those programs you hate so much.

[Joust Williams]

I'm afraid to do that because I don't want to come under and then owe when next year rolls around. I know there are calculators for it, but I just don't completely trust them.

So it's just a nice extra paycheck that I ignore until it comes. Sure, it's psychological, but whatever

[Swagger Jack]

If you are really smart, you wouldn't have to pay any income tax to fund all those programs you hate so much.

[Mr-K]

I'm using mine to fund moving to DC. It's well timed.