[FrugalTrader]

For those of you with tax returns, what are your plans? Splurge? Invest? Pay down debt?

 

[Rickson9]

For those of you with tax returns, what are your plans? Splurge? Invest? Pay down debt?

My wife and I currently have no plans for our tax return. We have a cash fund for potential RE and stock purchases and it will probably be lumped in there.

 

[mfd]

Mine is going in as a lump sum payment on our mortgage.

 

[Hazelnut]

I put $2700 on my line of credit (that felt really good!) and paid my trailer park fee for the year ($1640) & blew the rest ($200 whoopee!) I really want to pay off my debt soon!

 

[lister]

TFSA (emergency fund) this year and likely next year. After that it's being plunked down on the mortgage.

 

[Cammac46]

TFSA + cash left over for other things (build a shed)...I just have to get it done! With a refund in the works I know I should have it done by now...

 

[Patricia]

TFSA for most of it and take about $500 to splurge on some clothing and entertainment.

 

[onomatopoeia]

threw mine on our mortgage.

My wife hasn't decided yet, but chances are she will put it in her bank account as she usually does. She loves having cash reserves in the bank, and I see no reason to not to.

Not my preference, but she feels safer with more money in the bank, I feel safer with less debt.

 

[Ben]

Just parked it in the savings account for now. Building up the funds, and then planning to go back to skimming off the top toward the mortgage/RRSP.

 

[kayo]

Most of them will probably go towards the TFSA, I'm considering setting aside a portion of it and put it into RRSP as well.

 

[Alexandra]

I'm going to beef up my emergency fund...suddenly $5000 doesn't seem like enough .

 

[ccooperberg]

I'm also adding to my emergency fund with the money I get back. I had been planning to put it to the mortgage, but now just want to have it in easily accessible savi,gs.

 

[michika]

I spend 2/3 on debt, and the last 1/3 went into my emergency fund, and I ended up needing it for just what it was intended for.

 

[Jon Chevreau]

Terminology ambiguity here with the thread title. To me, the tax RETURN is the paperwork we file to the CRA, or its electronic equivalent. Hopefully it results in a tax REFUND, which is I think what we're really talking about here?

www.wealthyboomer.ca

 

[archanfel]

Just a side note (and probably playing devil's advocates here), a salaried worker really shouldn't get any tax refund at the end of the year. Tax refunds are usually generated by purchasing RRSP. Therefore, it's best to purchase the RRSP at the beginning of the year (or through monthly purchase if you don't have enough money) and then file a T1213 to reduce your tax deduction. That way, you maximize the tax shelter and do not let the government gain 6 months of interests.

 

[Jon Chevreau]

What a frugal and responsible bunch! We'll probably pump it back into my wife's RRSP (I did mine already). However, this year only we're also considering splurging $10,000 on some summer renovation project in the back yard in order to get the $1,350 Home Renovation Tax Credit (15% of $9,000; the first $1,000 doesn't generate the credit).

 

[Hampton N/S]

Line of credit

 

[Mockingbird]

Ideally, shouldn't we be getting any refund? Or pay a bit at the end of year? Personally, I hate to see our government holding onto my money for the whole year.

Just out of curiosity, how many of you utilized (or thinking of utilizing) Form T1213 to reduce tax deduction at the source, thus minimizing overpayment of taxes?


EDIT: Archanfel, sorry I've repeated your comments. I just saw your post. :O(

 

[Kalynn12]

Mine went into my TFSA also.

 

[whitegoodman]

Mine went into tfsa 80% and the rest to line of credit .......

wg