November 27, 2014, 12:54:00 AM

Author Topic: The tax monster is coming soon. What are you planning on doing with your refund?  (Read 21399 times)

dstppy

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Where's the obligatory "humph, not everyone lives in the US post" ;D

Unfortunately, two or three years back, I joined the 'what's a refund?' crowd. 

I wish I were as rich as my taxes say I am!  :D
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RMC33

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We also do our best to limit a refund and not being overtaxed and allowing the govt to earn interest on our own money (too much) and this is coming from a staunch liberal!
However with many business deductions and mortgage interest lowering our taxable income it just happens!

So I think an EF 70-200 2.8 IS ll should be a great way to pump some more money into the economy through B&H.

I was in the same situation. I get a huge deduction on my prototyping business since we produce very little waste (on an order of .5% of the material we buy gets turned into waste and 98% of our billing is paperless now) and from a few R&D tax credits that we benefit from. These all came up this year and I was not expecting them.

KyleSTL

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... I think an EF 70-200 2.8 IS ll should be a great way to pump some more money into the economy through B&H.
It's our civic duty.  Yeah ... that's the angle I'll take in my request for discretionary spending.
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extremeinstability

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Wild guess between now and April I sell either my Zeiss 21 or Canon 100-400L to help pay my taxes.  One of these years I'll learn to pay the quarterly estimates(like it matters).  God I love 15% self employment tax, sigh.  But yeah yay for all the deductions being self employed.  If I was getting money a Samyang TS 24 might be in order when it is out.  Gas money instead would probably serve more use however.

Faxon

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In this wonderful country, I use my Federal Tax Refund (my money repaid without interest) to pay most of my Second Installment on my Property Taxes due April 10. No toys for ME.

cayenne

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Wild guess between now and April I sell either my Zeiss 21 or Canon 100-400L to help pay my taxes.  One of these years I'll learn to pay the quarterly estimates(like it matters).  God I love 15% self employment tax, sigh.  But yeah yay for all the deductions being self employed.  If I was getting money a Samyang TS 24 might be in order when it is out.  Gas money instead would probably serve more use however.
If you don't have one, you need to look into filing for a subchapter "S" corp. Using that, you don't have to pay the 15% SE taxes (SS and medicare) on all of your billable funds coming in.<P>
With S corp...you pay yourself a 'reasonable' salary (talk with CPA, IRS is vague on this, but not hard to figure out)....and you only pay SE taxes on that salary portion, the rest falls through at EOY on personal income and you just pay state and fed taxes on that.

For example, you bill out $100K. You pay yourself a reasonable salary of like $25K or so.
You pay SE taxes only on that $25K...at EOY the remaining $75K comes in through your personal taxes minus all your deductions, etc.

This is one great way to save a bit more of your tax money for yourself. Just get with a CPA and figure out what a 'reasonable' salary is. You needn't be greedy...it all works out.

HTH,

cayenne

extremeinstability

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Thanks for the heads up Cayenne.  I'll have to look into that this year.  I've always filed myself online but planned to go to a tax account this year and will bring that up.

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cayenne

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Thanks for the heads up Cayenne.  I'll have to look into that this year.  I've always filed myself online but planned to go to a tax account this year and will bring that up.
It is a bit of extra paperwork, but worth it in the long run.

Much better at saving money that just the usual LLC they try to often push you into....

C

7enderbender

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So who is going to buy something fun with their tax refund?

Personally geting close to $4000 back and putting it towards a 7DmkII or 1Dx depending on the stats on the latter.


And what makes you think that everyone is getting a refund? I don't think I'll be making any major "investments" in anything fun any time soon. Especially since taxes just went up (despite what some people are trying to tell us).
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sandymandy

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humph, not everyone lives in the US :(

ewg963

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So who is going to buy something fun with their tax refund?

Personally geting close to $4000 back and putting it towards a 7DmkII or 1Dx depending on the stats on the latter.


And what makes you think that everyone is getting a refund? I don't think I'll be making any major "investments" in anything fun any time soon. Especially since taxes just went up (despite what some people are trying to tell us).
Ditto that more taxes equals less money in your pocket I feel the weight.  :(
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jasonsim

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Well...I'm probably due a hefty return once all the exemptions and credits kick in...but, honestly, don't know of something I must have.  Especially since I got a new 300mm f/2.8L II just before Christmas along with a 2x III, Gitzo 4 series tripod, Explorer tripod, and bunches of RRS stuff.  Still looking to sell my 500mm f/4L IS.  Maybe I'll set up a "baby sitters" fund so that I can make better use of the equipment I already have ;-). 

BTW, I think my paycheck was reduced by more than the 2% payroll tax increase.  I'll have to wait until next check, but perhaps the payroll department was withholding amounts commiserate with falling off the fiscal cliff.  Now that there was a fiscal cliff deal, perhaps the payroll dept. will catch up; wishful thinking I know.
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RMC33

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So who is going to buy something fun with their tax refund?

Personally geting close to $4000 back and putting it towards a 7DmkII or 1Dx depending on the stats on the latter.


And what makes you think that everyone is getting a refund? I don't think I'll be making any major "investments" in anything fun any time soon. Especially since taxes just went up (despite what some people are trying to tell us).
Ditto that more taxes equals less money in your pocket I feel the weight.  :(

Yes my tax rate increased but so did the amount of deductions I can take for my consultancy and business. Learning good tax preparation over the years has given me the benefit of either paying very little ($100-200) or being owed due to a deduction/credit that I can take advantage of that I learn about. Sorry you are not getting refunds I had nothing but good intentions for this thread.

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bvukich

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I'll be getting my return, and my annual bonus (hopefully not jelly of the month club) in quick secession; since I'm not sure the order I'll be purchasing in, I'll give the whole plan...

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artsmalley

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I think I will get rid of my single 430EX Flash that I have been bouncing around and get three of the new 600EX-RT Flash units. Definitely want to learn more about off camera flash this year. The flash units and some other items like a decent diffuser, umbrella, and soft box are my most probable items...assuming the tax refund is large enough of course :o

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