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Surprise Tax Refund

March 15th, 2008 at 01:27 pm

I posted this on the forums but it belongs here, too. We have owed taxes in each of the past few years. That's fine with us as we don't believe in loaning money to the IRS all year. Due to some large capital gains and some extra side income in 2007, I fully expected to owe again. I was expecting to owe in the neighborhood of $2,000 and had set aside money for that purpose.

We went to the accountant on Thursday and got everything back today. Between state and federal, we are getting a refund of $3,036! I'm not sure how - my accountant isn't in today. I'll call him on Monday to see what happened and adjust so it doesn't happen again next year.

So I'm not glad that we overpaid our taxes by that much, but I can't complain about an unexpected $3,000 windfall.

5 Responses to “Surprise Tax Refund”

  1. LivingAlmostLarge Says:

    Was your income down?

  2. Ima saver Says:

    I know how you feel about a tax free loan, but getting back something is better than owing!

  3. creditcardfree Says:

    Excellent...so know you have over $5,000 to reallocate (the $2K you set aside and the $3K refund)!

  4. disneysteve Says:

    Yes, income was down. I think that's what tipped the scale. My wife left her full-time job in February and didn't work at all until June or July when she went back to work part-time. Our gross (from regular jobs) was down about $14,000. What I thought was going to balance it out was a rather large capital gains distribution from one of our taxable mutual funds and an increase in my side income (medical surveys mainly) but I guess the decreased income outweighed the other stuff.

    And yes, I realized that it really frees up about $5,000 which is great. The Roths will get maxed out early this year. Plus, there is the $1,500 stimulus rebate coming, too.

  5. veronak Says:

    nice surprise

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