Friday, February 14, 2014

Taxes Back





We got our refund back today! Woo hoo! BUT, we owe the Fed $565 and received $1,075 from state. So, we are only netting $510 back. However, this is excluding the cost of H&R Block to prepare our taxes for us. This cost us $430! I will NEVER go back to them. The only reason we used them was because we sold some stocks with some sizable gains and I was unsure of how to file those. I watched the tax guy's every move and I will prepare our taxes from now on. So, in total, we are only going to get $80 back. I will stick that in savings for a rainy day, I guess. I always strive to break even each year on taxes. I don't like getting a lot back because that means the government is your bank holding your money with no interest earned. And, I don't like owing for obvious reasons.

Now, on to more exciting things. The loan we paid off posted to our account and we are now 52% done with this debt! Also, it turns out we have more money than I thought I did. So, we will not be overdrawing or reaching an uncomfortable position. This month, we have cleared about $150 in monthly payments off of our student loans. That is sure going to be nice to pay towards our current balance on the 21st. That debt snowball is really rolling now and we should see some major progress.

When the weather was gross, I calculated how much money we have saved in interest by paying off some our loans 9 years early. In total, we have saved $6,670.61. Talk about a nice vacation when these things are done. We have talked about going on a cruise through the Mediterranean as a celebration to us for our hard work. The figure we have saved in interest will pay for it on its own. It is pretty exciting stuff.

I hope that provides all of our readers with some encouragement to pay off these loans and no longer be a slave to your debt! 

4 comments:

  1. Oh ouch. Yeah, I wouldnt prepare with them ever again. When we first moved to the US, we used them, and boy, those fees are ridiculously high. That's awful they ate most of your return. Are you changing your W4s so you dont owe state taxes next year? At least you can deduct the state taxes payment next year...

    But that's very interesting. I wonder how much I've saved by paying my debt early vs not... any easy to figure those numbers out?

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    1. That's a good idea about changing our W4s. I will look into that.

      You can Google student loan interest calculators and it will help you tremendously. However, you need to deduct the interest paid already to each of the loans from the point you paid them off. It is certainly motivating to see how much money you have saved!

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  2. H&R Block why why!!! sorry! I would have done for free, stocks and all LOL

    HS

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    1. HS - I wish you lived nearby, and if so, I would have come to you! Never again will we use H&R. I think we will become a TurboTax family in the future!

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