November 22, 2020

How Do You Cancel Your Tax Return

How Do You Cancel Your Tax Return nicole is in Lancaster Pennsylvania Winchester if I said that right Nicole what's up how are you better than I deserve.

How can I help okay so my husband and I are going to be getting a pretty significant tax return or something maybe ten grand or so and we have a couple different.

Decisions to make and I wanted to get your opinion on this so we just. Paid off all of our debts except for our mortgage which is about eighty eight thousand dollars way to go thank you but now my husband. Also has a business partner and they have some rental properties in an LLC which have a significant. Amount of debt as well and we have the opportunity to possibly the one is an 11 unit which there's like five hundred and forty four thousand dollars,.

On that one and there is a personal townhome which has about 75 thousand on sat.1 and we have the opportunity to possibly so get out of. The business and get out of the 11 unit and just take on the townhome, as our personal rental property then mm-hmm so that's one situation right now do you need money to do that well we wouldn't have money to cash flow that no, so that would become our debt you know I'm saying you. Need to use the ten thousand dollars in question no question with the ten thousand then is if we would do that would we put ten thousand towards starting, to pay off that or I also need a vehicle I have a 2001 Chevy Suburban right now.

It's probably worth about three thousand it's rusting really bad and there's some unknown engine issues, those really deserve our showroom to them my husband makes about 86,000 before taxes okay and you're a stay-at-home, mom I'm a stay-at-home mom we have three kids you have an emergency fund yet we have our, one thousand dollar emergency fund we do not have the shortest month 1 gotcha ok alright well it's pretty simple we're going to walk up the baby steps and before I, buy cars couches or vacations I have I'm debt free except the home.

And I have an emergency fund so if you need an emergency fund before you buy a car and 10 grand yeah so that 10 grand. Is going to be you're raising your $1,000 up towards your three to.

Six months of expenses it's going to take that whole 10 grand easy and that money's just, gone there and then you start saving aggressively for your car you might have it might even not start. Your baby step 4 15% of your income going into retirement for a short period of time and until you save up 5 or 10. Grand and buy a car ok if you want to do that I. Might do that as far as the other rental property goes you pay it off with your house and baby step 6 okay so just lump that into that yeah. Dump dump that over to baby step 6 and clean it up as you're cleaning up your other real estate. Real estate goes in maybe step 6 and I all real feel, yeah unless it's a tiny tiny little own or something revealed fifteen thousand or something and then end up being sixty okay the last question is why in.

The world are you getting a tax return of ten, thousand of dollars Roz if that means you're withholding $800 a month too much right yes well my husband was self-employed and he just at the end of last year in September started a new job. So that means that that means that either their job is over withholding by a, bazillion or he paid out too much into his quarterly returns one of the two I think.

Both is happening and he already is looking into adjusting what he's getting back because. Yes we are getting a lot he's getting way too much taken out yeah yeah you need probably in this case you probably just need to have your tax advisor calculate your. Actual tax bill for 2019 and set your withholding up to be that, tax bill okay and you know take the proper note because the number of date of deductions that, you take has nothing to do with reality the IRS can't do math so their deductions chart is completely screwed so you need to figure out we are going to pay $12,000 in taxes, so we need to. Withhold $1,000 a month we get paid twice a month that's $500 a month a paycheck or whatever right just do some simple math look at the total tax bill divide.

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