refunds

Are You Withholding the Right Amount of Taxes from Your Paycheck?

Damian Davila — Tue, 03 Apr 2018 08:30:14 +0000

In 2017, the IRS received 152,235,000 tax returns — and of those returns, more than 73 percent were granted a refund. With the average refund last year standing at $2,895, you might think getting a windfall in the spring is a good thing. But rather than giving the government an interest-free loan all year, wouldn't you have preferred to have an extra $241.25 per month in your paycheck?

On the other hand, the 27 percent of taxpayers not receiving a refund may be getting the opposite — a big tax bill. They may not be having enough money withheld from their paychecks for taxes.

This is why it's important to withhold the right amount of taxes out of your paycheck. Let's review how to cover your projected tax liability while minimizing your refund. (See also: Bigger Paycheck or Bigger Tax Refund — Which Should You Pick?)

Meet the IRS Withholding Calculator

With the passing of the Tax Cuts and Jobs Act, many Americans are still trying to figure out the full effects of this legislation on their paychecks. In an effort to help taxpayers make sense of recent changes to the tax law, the IRS updated its Withholding Calculator on February 28, 2018.

While the IRS recommends that all taxpayers take a second look at how much in taxes they're taking out of their paychecks, the agency highly encourages the following groups to check their withholdings for 2018:

Two-income families.
People with two or more jobs at the same time or who only work for part of the year.
People with children who claim credits such as the Child Tax Credit.
People who itemized deductions in 2017.
People with high incomes and more complex tax returns.

How to use the IRS Withholding Calculator

Here's your game plan to achieve a "Goldilocks" withholding rate on your paycheck this year.

1. Gather your latest pay stub(s) and latest tax return

If you don't receive a pay stub in the mail, contact your human resources office to get a copy or learn how you can download one online from your company portal. Depending on your unique financial situation, you may also want to find your 2016 return (or your 2017, if you've completed it) to more accurately estimate your 2018 income, budget, expenses, and list of tax credits.

2. Provide general information and list potential tax credits

In the first two sections of the IRS Withholding Calculator, indicate your filing status, whether or not anybody can claim you as a dependent, how many jobs you and your spouse (if applicable) have, how many dependents you will claim on your return, and whether or not you or your spouse will be 65 or older on January 1, 2019.

Additionally, you will need to list any applicable tax credits, such as the Child Tax Credit and Earned Income Tax Credit. This is why it's helpful to have past returns handy to help you estimate those credits. (See also: 8 Tax Return Mistakes Even Smart People Make)

3. Detail your wage income and withholding

Next, enter your gross wages, salaries, tips, and any bonuses you expect to receive in 2018. Using your most recent pay stubs, enter the total federal income tax withheld to date in 2018 and the federal income tax withheld from your last salary payment. Indicate how frequently you receive your paychecks, and, if applicable, when you started this job in 2018, and when you expect this job to end in 2018.

If you receive any other taxable income, make sure to include it as well. The IRS Withholding Calculator is only as accurate as the information you enter, so leaving that income out may result in a higher tax liability.

4. List deductions

Here is one of the biggest changes implemented by the Tax Cuts and Jobs Act. If your standard deduction ($12,000 for individuals, $18,000 for heads of household, and $24,000 for married filing jointly) is more than your total itemized deductions, your standard deduction will be used to calculate your withholding. Otherwise, your total itemized deduction amount will be used. So, this is why it still pays to keep track of all of those deductions throughout the year.

Use your latest return to estimate your 2018 itemized deductions, including medical and dental expenses, paid taxes (up to $5,000 for single filers and $10,000 for married filers for applicable state and local income taxes, property taxes, or sales taxes), gifts to charity, and other itemized deductions. Remember that beginning in 2018, job and certain miscellaneous expenses are no longer deductible. (See also: 12 Things You Should Know About the New Tax Law)

5. Adjust your W4

Once you have entered all the data, the IRS Withholding Calculator will provide you with clear instructions on how to update your W4 with your employer. Depending on your situation, some action items may include changing your filing status, adjusting your number of allowances, and withholding an extra amount every paycheck.

Following the instructions from the calculator, you'll cover your tax liability just right.

Revisit the IRS Withholding Calculator as necessary

Don't set it and forget it. If your job (Promotion? Salary bump? Side gig?) or life situation (Married? Baby?) changes, revisit the IRS Withholding Calculator. The calculator will help you make sure you have the right amount of tax withheld from your paycheck at work.

The IRS recommends submitting your updated W4 to your employer as soon as possible. Withholding takes place throughout the year, so it's better to take this step right away.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Reasons You Should File Your Taxes as Soon as Possible

Mikey Rox — Tue, 28 Feb 2017 10:00:21 +0000

What do we want? A tax refund! When do we want it? Now!

Here are eight reasons you should pick up the pace on your tax preparation and file well before this year's deadline.

1. You'll Get Your Refund Faster

Simple logic, folks: The sooner you file your returns, the faster you'll receive a refund (if you're owed one). The IRS says it issues nine out of 10 refunds within 21 days (sometimes less) with e-file and direct deposit. Use that money to get a head start on spring and summer home improvements, pay off debt sooner than later, or bulk up your emergency savings account.

2. Filing Online Is Easy

If your taxes aren't complicated — and they shouldn't be if you don't have multiple sources of income — filing online should be a walk in the park. Using TurboTax online, for example, is almost effortless, and it will help you submit an accurate return while also saving you money. Best of all, you can do it on your own time and in the comfort of your own home.

3. You'll Have Extra Time to Pay the Taxes You May Owe

Filing early doesn't mean you have to pay the taxes you may owe immediately. In fact, it'll give you a decent window to figure out how to cover that cost, especially if you don't readily have it available. If you submit your tax return in February, for example, you still have until the April deadline to come up with payment.

4. Your Accountant Can Spend More Quality Time on Your Return

I'm an entrepreneur, and I own a business that requires a decent amount of accounting at tax time. Admittedly, this is not something I want to handle on my own, which is why I have a CPA. I usually schedule my annual meeting with him mid- to late-February — before he's bombarded with his other clients' returns — so he can give mine the TLC it needs. If you have a lot of components to your own taxes, this is definitely a strategy to consider. You don't want to lose out on refund money because your accountant was in a hurry.

5. You Can Spend More Quality Time on Your Return

Even if you're handling your taxes on your own, it's still wise to give yourself ample time to prepare. A lot of information goes onto a return, and you need to ensure that everything is correct. Tax mistakes can be costly, but they can also be avoided if you plan ahead instead of trying to beat the clock at the last minute. Triple-check your numbers and personal information for accuracy. (See also: 5 Common Tax Mistakes We Need to Stop Making)

6. You'll Reduce the Chance of Identity Theft

Identity theft is a major concern with regards to your finances, and even your tax return is at risk. Scammers can file fraudulent returns in unsuspecting taxpayers' names, but the chances of that happening are reduced the earlier you file. (See also: Beware These 6 Phony IRS Calls and Emails)

7. It'll Make Your Home-Buying Process Easier

I've bought several homes over the years, and it's very stressful. For one, the mortgage company needs every last piece of your financial information that they can get their hands on — and then some. Your homebuying process will go much smoother this time of year if you've already filed your taxes.

8. You'll Have Time to Help Advise Your Working Dependent Kids

Your working children can also make mistakes on their own returns, filing as independents when they're clearly still dependents. Have a discussion with your kids about this designation — especially important to remember if they're away at college and filing on their own — so you don't miss out on deductions that you deserve.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The 7 Most Common Tax Questions for Beginners, Answered

Carrie Kirby — Fri, 17 Feb 2017 10:00:18 +0000

It's tax season: That joyous time when you look back on what you earned last year and figure out whether you gave enough of it to Uncle Sam. Think of it as Christmas for the government.

If you're new to filing a tax return, the process can seem daunting. The forms have cryptic names. Making a mistake can have serious consequences, whether it's inadvertently paying too much, or paying too little and getting audited. A quick lesson in the basics of filing a tax return might help.

Before we begin, a reminder: I'm not an accountant. If you have a question about your individual tax situation that you can't answer by consulting the Internal Revenue Service, ask a professional. (See also: 6 Great Places to Get Free Tax Advice)

1. Do I Have to File a Tax Return?

You may be surprised to learn that not all adults are required to fill out a federal tax form every year. According to the Internal Revenue Service, you could be off the hook if you earned less than $10,000, or if certain other criteria were met. However, you may still want to file, because you could qualify for a tax credit that puts money back in your pocket. (More on that below.)

2. Do I Need to Hire an Accountant to File?

No. If your tax situation is simple — for instance, if all your income comes from your full-time job and your earnings are modest — your filing process should be straightforward. Of course, hiring an accountant could save you time. The IRS estimates that the "short form," 1040A, takes about 10 hours to file.

If you want to do your own taxes but are worried you'll make a mistake, using a tax prep website can be a good compromise. TurboTax, H&R Block, and TaxAct all offer free versions for simple returns. If your taxes are a bit more complicated — for instance, if you want to search for possible deductions — you can get both state and federal taxes filed through these sites for between $40 and $100. (See also: 8 Ways to File Your Taxes for Free)

3. Where Do I Find Tax Forms?

If you file online, you don't need to locate forms — any of the websites mentioned above will ask you questions and then submit your return online. But if you want to take pencil to paper, you can print out tax forms from the IRS website or pick them up, along with instruction booklets, at a public library or post office.

4. What Money Do I Have to Pay Taxes On?

You have to pay taxes on almost any money you make, whether it's from working, selling something, or even finding buried treasure. That said, there are plenty of exceptions, such as most gifts, compensation for injuries, proceeds from selling your home (within limits), and investment gains inside certain retirement accounts (you'll pay taxes on the gains inside your IRA eventually, but not now).

Getting paid in cash, making money doing something illegal, or working without documentation do not exempt you from paying taxes on the money you make.

5. Will I Get a Refund?

Most employers take money out of your check week after week, all year. Because no one knows exactly how much you're going to owe the IRS until the year ends, this withholding is merely an estimate. Once you work out your taxes, it may happen that the money taken out of your check every week turned out to be too much. If that happens, the IRS will refund the difference.

On the other hand, if it turns out that the money withheld was less than your tax liability, you will have to send the IRS a check.

Just because you got a refund last year doesn't mean you'll get one this year. Things change; for instance, if you made more money this year, you might have moved to a higher tax bracket, causing you to owe more.

Moreover, getting a huge tax refund isn't necessarily a great thing. While receiving a fat check is always fun, what this really means is that you gave the government an interest-free loan all year. If you get a large refund this year, you should look into having the amount taken out of each paycheck reduced so that it doesn't happen again next year.

6. What's the Difference Between a Deduction, an Exemption, and a Credit?

All three are ways the tax code allows you to reduce the tax you owe.

For the average taxpayer, an exemption and a deduction are practically the same thing: They both reduce the amount of your income that counts toward your taxable total. The most well-known exemption is for your children: For 2016, everyone gets to subtract $4,050 from their income for a dependent child living in the home.

We get tax deductions for charitable donations we make, mortgage interest, and for some work-related expenses, among many other things. For example, if you earned $50,000 this year, donated $2,000, and spent $1,000 looking for work, your taxable income would be $47,000 (minus any other exemptions and deductions you have).

Tax credits are subtracted directly from your tax bill, not your income. For instance, if your tax bill for the year is $5,000, but you can claim a $4,000 tax credit, you only have to pay $1,000.

One of the most important tax credits to know about is the earned income tax credit, a benefit for working people with low-to-moderate income. Qualifying families can receive between $3,373 and $6,269, depending on their number of qualifying children (or $506 for no qualifying children). The best part is, if your credit is more than you owe on taxes, you'll get the balance back as a "refund."

For instance, say you and your spouse owed $5,000 in taxes in 2016, but you qualified for the maximum credit of $6,269. The IRS would send you a refund check for $1,269 — plus any taxes that had been withheld from your paychecks. This is why it may be a very good idea to file a tax return even if you didn't earn enough for it to be required.

7. What If I File Late?

If you're not going to be able to submit your tax return and any tax owed by the deadline (in 2017, it's April 18), you should at least file for an extension by that date. If you were expecting a refund, being late on submitting your forms isn't a big deal. But if you end up owing a payment, the IRS will charge late fees every month — so don't delay.

Of course, it's never too late to pay money you owe to the IRS. If you failed to file or to pay what you owed in past years, you can file a "back tax return" now. If less than three years have gone by, you can even claim refunds for past years.

This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Get Your Money Sooner by Starting 2016 Tax Prep Now

Damian Davila — Wed, 30 Nov 2016 11:00:07 +0000

Good news, U.S. taxpayers!

In 2017, Tax Day is pushed back to Tuesday April 18th, because April 15th falls on a Saturday and the Emancipation Day holiday (anniversary of the signing of the Compensated Emancipation Act by President Abraham Lincoln) is pushed to Monday April 17th. Residents of Maine and Massachusetts get an extra day to file federal taxes because Patriots Day falls on April 18th, 2017.

However, getting a head start on your return is a better strategy than waiting until April 18th or 19th, depending on your state of residence. From increasing the take-home from your remaining paychecks for the year to making the most out of a bonus check in the first few weeks of 2017, let's review five reasons why it pays off to prep for the 2016 tax season now.

1. Avoid Withholding More Than You Need To

Nearly eight out of 10 U.S. tax filers get tax refunds. This isn't good for two reasons. First, those individuals have to get throughout the year with fewer dollars. The average refund for the 2016 tax season was $2,777, or roughly $230 per month. Wouldn't an extra $230 per month for a full year provide more breathing room in your budget and help you pay down high-interest debt faster? Second, the IRS pays you no interest on the refund from your current year. Now, that's a double whammy.

To find out whether or not you have already withheld enough for this tax season, use the IRS Withholding Calculator and find out how to adjust your Form W-4. Chances are that you will be able to take home more money from your last paychecks from 2016 and avoid having to put those holiday purchases on credit.

2. Spread Out Tax Liability

Of course, using the IRS Withholding Calculator may reveal that you're behind your estimated tax liability. In that case, finding out earlier allows you to take several steps to avoid a huge lump-sum payment next year. Here is your game plan:

Adjust your filing status, number of allowances, and number of dependents on Form W-4 according to the instructions from the IRS Withhold Calculator to increase withholding on the next few paychecks;
Input an additional amount, if any, you want withheld from each paycheck on line six of Form W-4; or
Submit an additional estimated tax payment with the fourth voucher from Form 1040-ES due on January 17, 2017.

3. Boost Retirement Account Contributions

In 2016, you can contribute up to $18,000 ($24,000 when age 50 and over) to your 401K and up to $5,500 ($6,500 when age 50 and over) to your IRA. The catch is that all of your contributions to an employer-sponsored retirement account must be turned by your last paycheck. Even though you can technically submit contributions to your employer-sponsored retirement account until December 31, 2016, your last paycheck may fall on, let's say, December 23rd.

If you know that you still have a lot of room before you hit the maximum contribution limit for your 401K, you're in time to increase the contribution percentage from your paycheck for the remainder of the year. Act fast because some employers may make changes effective anywhere from one to four weeks.

In the event that you don't have a retirement account, find out whether or not you're eligible to set one up by December 31, 2016. As long as you set up your 401K or IRA by this date, any contributions to your retirement account that your employer makes through a commission check or bonus next year before Tax Day or the day that you file your return, whichever is earlier, reduce your taxable income for 2016! (See also: 6 Smart Things to Do With Your Bonus)

4. Get Your Refund Faster

The IRS issues tax refunds generally in less than 21 calendar days. By submitting your tax return earlier, you're increasing your chances of getting your return processed faster. By February 5, 2016, the IRS had received 26,670,000 returns and processed 26,133,000 of those returns. That's a 97.98% processing rate — not too bad. Fast forward to April 22, 2016, the number of returns received by the IRS ballooned to 136,528,000 and the processing rate drops by 3%. The early (tax) bird gets the worm (faster).

Completing your federal return early also helps you get your state refund faster. Remember that this year many states increased the required processing time due to new tax fraud prevention procedures. For example, the Hawaii State Department of Taxation increased the processing window from six to eight weeks to approximately 10 to 14 weeks.

To help increase the odds of a faster refund, opt to file your return electronically, whenever possible, and receive your refund via direct deposit. (See also: 8 Tax Return Mistakes Even Smart People Make)

5. Prevent Tax Identity Theft

Last but not least, a key benefit of preparing and submitting your 2016 tax return early is that it prevents tax-related identity theft. Here's a sample. As of February 29, 2016, the IRS had identified 31,578 fraudulent tax returns involving identity theft. Just six days later, the number of identified fraudulent tax returns increased by over 10,500!

When it comes to filing your return, every single day counts. The longer you wait, the higher your chance in becoming the next victim of tax-related identity theft.

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Ways Student Loans Impact Your Taxes

Ashley Eneriz — Thu, 09 Jun 2016 09:30:21 +0000

Tax time can make many feel anxious, especially if they're already burdened by student loan debt. Many people might not even think about their student loans when it comes time to file, and that would be a huge mistake.

Here are three big tax issues — and one huge tax benefit — you should be aware of if you have student loan debt.

You Can Deduct Loan Interest

Yes, you can deduct your student loan interest, reducing your income by up to $2,500. But to qualify for this deduction, you must earn less than $80,000 if single or $160,000 if you are filing jointly.

If you paid more than $600 in interest on your student loan, you should automatically receive a Form 1098-E in the mail. However, if you do not receive this, you can still claim the interest you paid. Just request this form from your lender in January. (See also: 15 Ways to Pay Back Student Loans Faster)

Defaulting on Your Loan Could Cost You Your Tax Refund

If you default on your federal student loan, your tax refund could go straight to your lender. They are legally allowed to take 100% of your tax refund. For most federal loans, you will be considered in default if you have not made a payment in 270 days.

Filing Jointly Can Cost You More in Student Loans

Many couples will file jointly to save money on their taxes and have easier access to tax credits, like the child tax credit and the dependent care credit. However, filing jointly can also make you pay more in student loan repayment throughout the year.

Many individuals pay for their student loans on an income-driven repayment plan, which calculates monthly payments based off earnings. Since your joint income will be significantly higher than your individual incomes, your loan payments are likely to be higher. To make smaller monthly payments on your loans, you should probably file separately.

You want to understand how much money it will cost to file your taxes separately versus how much you'll make in additional monthly student loan payments if you file jointly. MagnifyMoney.com put together a simple example scenario of a married couple without children. In their example, the couple would have saved over $1,100 in federal taxes if they filed jointly, but they would have saved $6,816 on their student loan payments by filing separately.

Student Loan Forgiveness/Cancellation Could Mean More Taxes

Student loan forgiveness programs are a great way to offset some of your student loan debt. However, some student loan forgiveness programs also come with a hefty tax bill in the end.

Student loan forgiveness programs such as the Public Service Loan Forgiveness (PSLF) and other plans for teachers, health professionals, lawyers, or volunteers are all tax-free. If you follow the programs' rules for loan forgiveness, your loan will be forgiven without tax repercussions.

Certain student loan forgiveness programs offered through individual states can be subjected to taxes. Many are not, but it is a good idea to do your research.

If your student loan is cancelled or discharged, it can be considered taxable income. It might be cancelled or discharged for one of the following reasons:

Cancellation for closed school;
Cancellation for False Certification of the loan;
Cancellation for unpaid refund of the loan;
Discharge for death or disability.

Finally, if you sign up for repayment programs that offer loan forgiveness after a certain number of years, any unpaid amount which is forgiven is considered taxable income. This usually happens with the income-based repayment (IBR) plans and the Pay As You Earn (PAYE) repayment plan. (See also: 5 Sobering Facts About Student Loan Debt)

Talk with a financial adviser that specializes in student loan debt for more help.

Do you write off your student loan interest on taxes?

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Tax Mistakes Millennials Make

Qiana Chavaia — Thu, 03 Mar 2016 11:30:07 +0000

Claiming deductions and organizing receipts isn't fun for anyone — least of whom Millennials, who might be filing taxes for the first time or experiencing changes in their finances.

And while making mistakes might at times be unavoidable, it's not a legitimate defense if the tax man comes knocking. Consider these eight common errors Millennials make when preparing and filing taxes.

1. Not Hiring a Tax Professional (If You Need One)

Not everyone needs a CPA or other tax professional. In fact, if your taxes are straightforward, you can easily file them yourself for free, or use low-cost services such as TurboTax. But not hiring a CPA is one of the biggest mistakes you can make if your taxes are complicated. Accounting professionals are all too familiar with legal loopholes, tax credits, and qualifiable exemptions, and they will work on your behalf to understand your particular situation and get you the maximum return.

A simple rule of thumb: If your taxes seem too challenging to file on your own, they probably are. Seek expert guidance before you make costly mistakes.

2. Spending Tax Refunds

Before most people have received their tax refund, they've already decided how they're going to spend it. Most often it's on a depreciating asset like a car, clothes, or electronics. If tax season is exciting to you for this reason, you definitely should not be spending your refund. I know this not what people want to hear, but you should find more financially constructive uses for this money — such as investing, tackling debt, or making truly necessary purchases. (See also: 8 Smart Things to Do With Your Tax Refund)

3. Allowing High-Interest Debt to Linger

If you're carrying high-interest debt on anything — including car loans, student loans, or a mortgage — you may want to use your annual tax refund to knock it out fast. This just depends on your personal situation. First, see if you qualify for ways to reduce your interest rate and/or monthly payments, such as mortgage refinancing, a student loan forgiveness program or income-sensitive repayment. If you can't, paying the debt off quickly might make sense. Put your refund in a savings account, divide it by 12, and take small monthly withdrawals of this amount to include with your regular payments each month. Use this strategy for any debt you wish to repay early. (See also: 4 Times Student Loan Refinancing Can Save You Big)

4. Not Using Retirement Accounts to Lower Your Tax Bracket

Taxes are by far one of the biggest obstacles normal people face when trying to build wealth. If you don't believe me, here's a simple example. If $1 invested doubled every year for 20 years, it would end up being worth $1,048,576. If the same $1 invested doubled every year for 20 years and was subject to a 28% tax bracket, it would be worth a modest $51,353. Now you see the importance of investing to the max inside of tax-advantaged accounts such as 401Ks and 403Bs in order to reduce your tax bracket.

5. Forgetting to Claim Capital Losses

Whether you invest inside of your retirement accounts, or trade on investing platforms such as E*TRADE, if your capital losses offset your capital gains the difference can be claimed as a tax deduction. Let's say you decided to trade penny stocks — and I'm not saying penny stocks are necessarily a bad investment, but let's say this year you lost $2,000 with no other capital gains from other investments. Your $2,000 loss on risky stocks can be deducted from your other income. In fact, you can deduct up to $3,000 of Capital losses in any tax year. Anything over $3,000 can carryover to the following tax year.

6. Failing to Claim Student Loan or Mortgage Interest Payments

Mortgage and student loan interest payments are generally tax deductible, within certain limits. If you qualify for these deductions, don't forget to claim them. It could otherwise cost you thousands of dollars at tax time.

7. Not Using an FSA for Childcare Costs

If your employer offers an FSA, make sure to take advantage of it. The annual contribution limit to Flexible Spending Accounts (FSA) is $2,550, and money saved inside a FSA is tax-advantaged and can be used for health-related costs and dependent care expenses. Any money saved inside your FSA is taken from your pre-tax income, reducing your annual income by the subsequent amount. However, there are time limits on using FSA funds so, be careful not to lose the money you've saved. In 8 Ways to Spend Your Last-Minute Health Care FSA Funds, I explain how to avoid losing your hard-earned dollars.

8. Not Claiming the Cost of Moving

Millennials move more than any other group. And the majority of them move due to career opportunities. Well, did you know that if you change residences due to work, you can claim the expense of your move as a tax deduction? The IRS states that if you meet certain requirements, the cost of your work-related move may be tax-deductible.

Have you made any of these tax-time mistakes?

This article is from Qiana Chavaia of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Times You Should Demand a Refund

Mikey Rox — Wed, 15 Jul 2015 11:00:17 +0000

When you spend your hard-earned money on a product or service, you expect a certain level of quality — and when that quality falls short of expectations, it's not unreasonable to think you're entitled to a refund. But not every situation qualifies. So when should you stand your ground for your money back, and when should cut your losses? Take a look at these nine times you should demand a refund — ever so politely, of course.

1. Departure Taxes on an Unused Flight

I once booked a European vacation around the holidays that was supposed to stop in London, Dublin, and Paris, but the last leg of the trip was cancelled due to "weather conditions" according to the evil discount airline that shall remain nameless. The airline offered to fly my friends and me to Rome as penance — which was a nice offer in theory, except we couldn't fly on the dates they suggested — so my flight was essentially a loss since the airline wasn't responsible for acts of God, which, in this case, was fog. I was young and dumb and just accepted the decision.

Maybe that wouldn't have happened if I were friendly with Kyle Stewart, travel editor at UPGRD, at the time. He experienced a similar situation, but walked away a little less broke than I did.

"We had found a very cheap flight to and from London, but once we were abroad we had to make a change and book an alternative separate flight home," he says about his one-time travel plans. "Our tickets were non-refundable, but it is unlawful for the carrier to keep revenue they collect for 'taxes' if you do not actually fly the route. The U.K. has a steep departure tax of nearly $250 each on flights leaving the United Kingdom. Because we did not fly those routes but had paid for the taxes, even on a non-refundable ticket we were able to get the departure tax refunded which nearly paid for our alternative transportation home."

2. Anything Unsanitary or Unsavory in Your Food

There are a lot of gross things I can deal with — my friends would love to tell you the story about the time I ate an ancient corn chip off the carpet in high school for a dollar — but as I've evolved out of being an idiot, hair or other yuck in my food isn't one of them. It's hard enough to eat out these days just thinking about the various "things" in my food that I can't see, so you better believe if there's visible, physical evidence of my gag reflex, I'd like my money back, please. And another, fresh meal. I'm willing to give it another go since I understand that accidents happen and I'm usually too hungry to have to start the restaurant search all over again.

3. Items That Break Too Soon

If you've recently purchased an item and it breaks unreasonably soon under normal use — I'd say less than 90 days, for most things — take it back to the store for a replacement or a refund. I tend not to buy the same junk twice in a row, so typically I'd just like my money back so I can avoid this problem a second time. This is a situation where store associates and managers like to give you a hard time — "How do I know how it broke?" — but don't let them beat you. Stay strong and stage a sit-in to get what you're owed if you have to.

4. Groceries That Are Spoiled, Rotten, or Stale

I think this is a situation where Americans as a collective lose tons of money, but one that is considered perfectly valid refund territory. I would be willing to bet than more times than not when the average supermarket shopper realizes they have a spoiled, rotten, or stale item when they're already home, they just throw it out. What's a few bucks, they think. Plus, they'd have to get back in the car, go back to the store, speak to the manager, blahblahblah. All worth it in my book. Food isn't cheap, and this is America; we shouldn't expect anything less than the highest quality food for which we're paying.

5. Goods That Aren't as Advertised

False advertising is against the law for a reason: You can't trick people into thinking they're getting one thing and then sell them something else. This goes for anything: from kids' toys to electronics to power tools. If the item said it was going to perform a certain way and it fell short of that promise, you deserve a refund.

6. Services That Aren't Performed as Promised

It's not just tangible goods that can fall short of expectations; services, like hair and nail salons, auto body shops, and dog grooming facilities can too. I take services that aren't performed as promised seriously because it's an active-engagement situation, and as an entrepreneur myself I recognize the importance of providing the very best service possible — and when that's not possible, apologizing and doing whatever I can to make amends. Good customer service is key, and I expect you to recognize that without putting up a fight if I'm being perfectly reasonable.

7. Erroneous Charges on Your Bill

Mark my words here: This happens ALL the time. From your cell phone bill to your Internet bill to your doctor's bill, there are sometimes strange charges that shouldn't be there. Most of the time they're mistakes, but I'm also not naïve enough to think that the provider isn't sometimes trying to get one over on you, thinking you won't read the bill closely enough or that the fee they're overcharging is so low you won't waste your time fighting it. Read your bills closely and make sure every charge is accounted for.

8. One-Time Late Fees if You're a Loyal Customer

Just hours before I started writing this post, I called J. Crew to dispute a late fee on my bill. I didn't receive the bill in time as it arrived at my other home, so I missed the payment due date. Because I'm a very loyal customer to J. Crew, and I always pay my bill in full each cycle, I called to kindly request that the late fees be waived for this circumstance. The customer service agent was perfectly willing to do it, and it saved me $50.

9. Hotel Rooms That Aren't Sufficiently Clean

I stayed in a Red Roof Inn once that had not one but two bugs in it (not the bed variety, thank God); a hair on the towel; and no cold water in the sink, only boiling hot. I sent a message through the customer service portal on the hotel's website asking for a refund but my claim was dismissed. I stayed at the same hotel a week later and coincidentally they gave me the exact same room with the exact same issues, just no bugs this time. Again I requested a refund. I got a credit for a free night's stay – which is sort of moot, because why would I go back there after they failed me twice? – but it's better than nothing from a company that obviously doesn't put much stock in customer service.

Are there other times we should demand a refund? Tell me one of your personal experiences in the comments below.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Top Three Tax Facts to Know for 2016

Damian Davila — Thu, 25 Jun 2015 13:00:12 +0000

2015 is a rough year for taxpayers.

This is the first year the IRS administers the premium tax credits and individual mandates under the Affordable Care Act.
The number of IRS employees assigned to phones dropped by 26%, and those employees answer fewer than 40% of calls.
Lucky callers that get to talk to somebody at the IRS only do so after waiting up to 70% longer than five years ago, and can only get answers to the most basic tax questions.
Nina Olson, taxpayer advocate at the IRS, summarized this tax season as a "devastating erosion of taxpayer service" and a "sad state of affairs."

Once this year's tax season is in the books, it's time to get ready for the one next year. To help you determine what's in store, here are three tax facts to know for 2016.

1. More Time to File

About one third of Americans wait until the last minute to file their federal taxes.

Those procrastinating tax filers (not you, of course!) will be happy to find that most of them are going to get four extra days to file federal taxes in 2015. There are three reasons for this extension.

2016 is a leap year, so February 29th provides a much needed extra day.
The 154th anniversary of Emancipation Day, when former President Lincoln signed the Compensated Emancipation Act, falls on April 15th in 2016. Made an official public holiday under Section 7503 of the Tax Code in 2005, Emancipation Day pushes the tax deadline to the next business day.
Since Tax Day and Emancipation Day will be observed on Friday April 15, 2016, the next business day will be Monday April 18, 2016.

Wohoo! Most taxpayers will have until Monday April 18, 2016 to file federal taxes (four extra days).

You may be wondering why I keep saying that "most taxpayers" get four extra days. The reason is that some taxpayers will get five extra days.

Residents of Maine and Massachusetts will celebrate Patriot's Day (a state holiday commemorating the anniversary of the Battles of Lexington and Concord, the first battles of the American Revolutionary War) on Monday April 18, 2016. The aforementioned Section 7503 of the Tax Code includes in its definition of "legal holiday" any statewide legal holiday in the state where such office is located.

So, residents of Maine and Massachusetts have until the closing hours of the postal office on Tuesday April 19, 2016 (five extra days!) to drop their federal tax forms in the mail.

Need even more time than that? Then make sure to file an extension by the deadline.

2. Over 100,000 Compromised Tax Records

Even when you cross the t's and dot the i's in your federal tax forms, something may still go wrong.

In May 2015, the IRS announced that "...criminals used taxpayer-specific data acquired from non-IRS sources to gain unauthorized access to information on approximately 100,000 tax accounts." Identity thieves got away with Social Security numbers, dates of birth, and street addresses through the IRS Get Transcript online service, which is currently unavailable.

Those 100,000 taxpayers affected by the data breach will receive a letter from the IRS officially notifying them of the event and providing recommendations for next steps, such as credit monitoring.

However, there's more to this breach.

An estimated additional 100,000 taxpayers will also receive IRS letters in the event that the criminals tried, but were unsuccessful, to gain access to taxpayer data through the Get Transcript application.
About 13,000 suspect returns were filed for tax year 2014 and their refunds were already sent out.

If you were a victim of identify theft, you may have already received (or will receive) an IRS letter in the near future. This would surely throw a monkey wrench into your 2016 tax filing.

3. Late State Tax Refunds

This 2015 the state tax man cometh late.

In response to the increasing number of tax fraud cases around the country, more than one state Department of Taxation is delaying refunds. For example, the Hawaii State Department of Taxation initially told taxpayers it would take six to eight weeks to process submitted tax forms.

By April 2015, new procedures to prevent tax fraud increased the wait period to approximately 10 to 14 weeks.
The Hawaii Department of Taxation updated the processing time to up to 16 weeks on May 6, 2015. Further delays are expected since refunds issued after July 20, 2015 will start receiving interest.
Hawaii taxpayers that file their state taxes online usually get a faster refund. This won't be the case for 2015.

But Hawaii taxpayers aren't the only ones on this boat.

The state Department of Taxation of Colorado has noticed a spike in fraudulent forms, so they had to suspend refunds for 10 days. As a result, many refunds may be still be delayed.
The State of Alabama Department of Revenue saw a rise in the filings of fraudulent state income tax returns using online software services, so they had to implement a Taxpayer ID Confirmation Quiz. Some Alabamians are required to take this quiz and, if the fail to complete it, they won't have their refund processed.
The Louisiana Department of Revenue didn't start issuing state income refunds until the last week of February due to an increase in tax fraud.

Waiting on your refund, if any, may put a hold on your finances, particularly when you're counting on that refund to make a down payment, pay a big bill, or reduce debt. This is why you need to figure out the appropriate withholding rate (not too big, not too small) so that you don't end up owing the taxman a big check. (See also: 8 Tax Return Mistakes Even Smart People Make)

More days to file federal taxes, letters from the IRS warning some taxpayers about identity theft and tax fraud, and delayed state tax refunds are sure to make 2016 an interesting year.

What is your forecast for 2016's tax season? Please share in the comments below or tweet us at @Wisebread.

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Tax Return Mistakes Even Smart People Make

Damian Davila — Tue, 07 Apr 2015 16:54:00 +0000

It can happen to the best of us.

Former Treasury Secretary Timothy Geithner failed to pay nearly $35,000 in Social Security and Medicare payroll taxes from 2001 through 2004.
Five-time Grammy winner Lauryn Hill served prison time for owing roughly $2.3 million in taxes.
Hollywood star Christina Ricci owed unpaid taxes close to $200,000 back in 2008.

Whether intentional or unintentional, tax return mistakes have big consequences. Here are eight of the most common that you have to pay special attention to.

1. Waiting Too Long

More than 90% of IRS refunds are issued in less than 21 days, but the 2015 tax season may feature longer refund wait times. This year the IRS is hit with a triple whammy: a smaller budget, greater costs, and increased tax complexity. Remember that 2015 is the first year the IRS will administer the premium tax credits and individual mandates under the Affordable Care Act.

Waiting until the last minute to file your taxes increases your chances of waiting longer than necessary for a refund. According to the IRS, one third of Americans wait until the last minute to file taxes. The longer that you wait, the longer that your tax refund (if you're expecting one!) is going to take. So, stop procrastinating and get it over with already.

2. Filing on Paper

IRS Commissioner John Koskinen has already gone on the record that the level of taxpayer service people can expect is not going to be very good this year. The Commissioner has a special warning for those filing their tax returns the old fashioned way: People filing paper tax returns could wait an extra week or longer for their refund than those who file electronically. Paper returns are handled by an actual person, and this year the IRS simply has less staff available.

Besides, people doing their taxes on paper are about 20 times more likely to make an error than e-filers. Errors in addition or subtraction are very common on paper forms and can delay processing times. Other common places for math errors are the worksheets included in some forms. The IRS asks filers to pay special attention when figuring out their Earned Income Tax Credit, Child and Dependent Care Credit, and standard deduction.

The fastest way to get your refund is to file electronically. If your tax declaration has no issues, your refund gets processed automatically.

3. Making Math and Data Entry Mistakes

Even when using a tax software program, you can still make math mistakes. While the software can add, subtract, and transfer amounts across forms, you still need to input the right amounts.

The most common of data entry errors is the transposition mistake. This happens when two digits in a larger number are reversed. For example, your W2 form may say $54,000, but you incorrectly put $45,000 into the software. Avoid this problem by double checking any time that you input an amount.

Pay particular attention when entering your bank's routing and account numbers for tax refunds by direct deposit. In the event that you enter an account or routing number that belongs to someone else, and the designated financial institution accepts the deposit, you must work directly with that financial institution to recover your funds. The IRS assumes no responsibility for this type of error.

4. Using Wrong Names

Just like numbers, names matter on tax forms. Your name, your spouse's, and your dependents' need to match the tax identification number the Social Security Administration has on file. Any mismatch could cause delays in processing time.

If you legally change your name because of marriage, divorce, court order, or any other reason, you need to apply for a new Social Security card in order to use your new name on a tax form. Getting an updated SSN card is free and can be completed via email or at your local Social Security office.

5. Forgetting Signatures

An unsigned tax return is not valid. Be aware that both spouses must sign a joint tax return. When filing your paper return, make sure to gather all necessary signatures before mailing it out. Don't forget to include the date next to the signatures.

Any tax software requires you to sign using a personal identification number. The tax software should explain the e-signature process to you, or you can get your electronic filing PIN on your own. Either way, you'll need the Adjusted Gross Income from your original (not any amended) last year's federal tax return.

6. Failing to Ask for an Extension for Payment by April 15th

Uncle Sam is one guy that you don't want to owe money to. From wage garnishments to liens on your properties, the IRS has a scary arsenal of debt collection tactics. The first step in solving your tax payment problems is to file on time and request a filing extension with IRS Form 4868 by midnight on April 15th.

This way you only pay a monthly penalty of half of 1% of any tax that you owe, instead of 5%. If you can show reasonable cause for not paying on time, attach a statement to your return explaining the reason. In some cases, the IRS may waive the late penalty payment. Also, even if you can't pay in full at the time of filing, try to pay as much as possible to minimize fees.

No matter what your circumstances are, make sure to file federal taxes by the April 15th deadline. Then, work out how to pay the remaining balance to the IRS. (See also: Can't Pay Your Taxes? Here's What to Do)

7. Paying for Tax Preparation

Certain taxpayer groups are eligible for free tax return preparation.

Volunteer Income Tax Assistance: People making $53,000 or less per year, persons with disabilities, seniors, and limited English-speaking taxpayers can get free basic income tax return preparation from IRS-certified individuals. Call 1-800-906-9887 for more information.
Tax Counseling for the Elderly: Individuals age 60 or older can receive free tax help and assistance.
IRS Free File: Any taxpayer with an adjusted gross income of $60,000 or less can file federal taxes for free. Some state returns are available and some are free.
On-campus tax prep: During tax season, many colleges and universities offer free tax prep services for qualifying students.

However, if you're a small business owner or self-employed, you should consider hiring a professional. If you use Schedule C, you're almost three times more likely than a corporation to receive an audit. Any "creative accounting" that can't be proved gets slapped with a 25% inaccuracy penalty from the IRS on top of any applicable taxes and interest. Better safe than sorry. (See also: 4 Times You Should Splurge and Hire a Pro)

8. Not Filing Taxes When Living Abroad

The IRS is very clear in that any U.S. citizen or green card holder is subject to U.S. federal income tax whether he or she is in the U.S. or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

The rules for state income taxes for U.S. citizens and green card holders abroad vary from state to state. Wyoming, Washington, Texas, South Dakota, Nevada, Florida, and Alaska don't collect state income taxes, so former residents of those states don't have to worry.

Make sure to file the applicable tax returns every year. You're lucky that you may be allowed an automatic two-month extension to file your return and pay any federal income tax that is due. U.S. expats in England, France, and Germany can get help directly at the IRS permanent offices in those countries. All other U.S. expats should review the International Taxpayers section of the IRS website.

Have you ever made any of these — or any other — tax filing mistakes?

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Effectively Complain to the Manager

Lauren Treadwell — Tue, 20 Nov 2012 11:00:34 +0000

One of the basic tenets of business is that it’s cheaper to retain an existing customer than to acquire a new one. Many companies view customer complaints as a way to gauge what works and what changes they need to make to keep customers happy. Good managers take this to heart and strive to provide the most favorable solution to a customer’s problem. However, an ineffective complaint can actually hurt your chances of getting the issue resolved. How you approach the situation can make all the difference, so using the right methods can greatly increase your chance of satisfaction. (See also: How to Get What You Want on Customer Service Calls)

Remain Polite and Calm

Although you are likely annoyed or even angry about the situation, it’s very important to keep your emotions in check when you speak to the manager. People often lose their ability to empathize when they feel like they’re being verbally attacked, and the manager can easily go into a less-than-helpful, defensive state if you come off as overly upset or aggressive.

Don’t Point Fingers

People react better and are more willing to help you if they do not think you are blaming them directly for the problem. If a service rep, salesperson, or restaurant server is the problem, using a phrase such as “I’m sure the person in question does not represent your policies” tells the manager that you’re not attacking him or the company as a whole. This also keeps management from becoming defensive and less willing to resolve the matter in your favor.

Blunt Your Criticism

No one wants to hear everything they do is wrong, and this is especially true for mangers who are trying to solve a customer’s problem. Stating what you enjoyed about the meal, product, or service and then offering your criticism softens the blow and tells the manager that he may be able to keep you as a customer. Use the company’s desire to retain you as a customer as leverage. Say how often you visit or use the service and tell the manager that you would like to return. Failing to point out the good points about the establishment or service will make the manager think you won’t be returning anyway, and it may make him less inclined to honor your request.

Propose a Solution

The most effective complaints offer a specific solution. Telling the manager exactly how you want the issue to be resolved gives him a direct course of action and increases the likelihood of a positive result. It also takes away the need for the manager to guess at what you want, which can quickly turn into dickering for “fair” compensation instead of fully resolving the issue. If you desire a refund of a purchase or payment for a service, read your service contract or check the store policies online or on the back of the receipt to determine the refund policy and ensure that you are not out of the refund or return time frame. If you are, you may only be able receive store credit or an exchange, no matter how well you craft your complaint.

Be Reasonable

While your request should make you feel adequately compensated, demanding a free meal because your drink order was wrong will make you seem unreasonable and can make the manager less willing to help you. If a product or service you ordered was damaged or incorrect, give the manager adequate time to repair, replace, or redo it.

Staying polite and reasonable gives you the best chance of initiating an effective complaint. Not only will you be more likely to receive the outcome you desire, you’ll also be able to return to the store or restaurant or keep using the service with confidence.

This article is from Lauren Treadwell of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get a Refund When Something Is Non-Refundable

Paul Michael — Mon, 29 Aug 2011 10:36:08 +0000

That little phrase — non-refundable (or non-returnable) — is as unsettling to frugal shoppers as garlic is to vampires. Surely in this day and age, where the customer is always right and stores are willing to do anything to get your business, the very idea of non-refundable must be out of date, right?

Well, yes it is. Kind of. There are usually ways around every problem, if you're willing to put in a little bit of extra effort and turn on the charm. Or, if charm doesn't work, the threat of further action, including legal ramifications, can work. But usually, a simple explanation of extenuating circumstances can get you what you need. (See also: How to Complain and Get a Good Result)

So, what follows is a list of items that are often non-refundable or non-returnable, and a few ideas on how to get around the “standard” policy.

1. Airline Tickets

These are perhaps the biggest and best-known non-refundable purchases. We're always afraid to commit to buy because we know, even if we purchase the pointless travel insurance, that we're never going to get our money back.

But for those with particular circumstances or some real persistence, it is possible. These are tough times for the airlines though, so these days it's even harder than ever to get any kind of refund or exchange.

First, if you need to cancel your flight due to “acts of God” in the country or state you're flying to, you will most likely get a refund. These reasons are not exactly small potatoes though, and they include severe weather, political turmoil, war, pandemics, or civil unrest. It's no guarantee, of course.

Medical problems are also taken into account when it comes to ticket cancelations. If you are struck down by a sudden illness or cannot fly due to problems that could occur (eye surgery + pressure = danger), then you could qualify for a full refund. You will need supporting medical documentation; you can't just call up with a sick note from your mom.

If there's a death or illness in the family, many airlines will give you a refund for your ticket. Hopefully that's one reason you'll never have to use.

And if you have just lost your job, you may be able to get a refund on that ticket. You'll really have to turn on the charm, though; most airlines have been thrown into financially choppy waters due to the economy, and a similar story on your end may not go very far.

2. Hotel Rooms

Closely related to airline tickets are hotel rooms. Many of the same reasons for canceling a flight also apply to the cancelation of a hotel room.

Once again, you should be able to cancel your reservation and get a full refund if the hotel is bang in the middle of a country that's being hit by war, severe weather, a pandemic, and so on.

Canceling due to illness or a death in the family is also a solid reason. However, you may not have as much luck with your own medical issues. Can't fly? Drive to the hotel. Feeling ill? Stay in your room for the trip. The hotel won't really care.

If it's peak season or there's a conference in town, you'll have a better chance of getting a refund. In those circumstances the hotel will have no problem filling the room. But any other time, you're probably going to eat the bill unless you have a world-class excuse.

Remember, though, if you can't get a refund, a credit for that hotel may be just as good. See if you can wrangle a stay later in the year for free. It also doesn't hurt to ask travel agents if they can help; they often have great relationships with the hotels. And always call the hotel directly; never go through the site you used to book the room. Hotels are filled with people who are in the business of making people happy with their stay. The other sites just want to sell rooms at a discount.

3. Custom-Mixed Paint

When you ask for a specific paint to be mixed, you're committing to the sale. The hardware store will print in big, bold letters NON-RETURNABLE on the top. You're stuck with it. Or are you? You may be stuck with the can of paint, but most stores will be more than happy to tint it again if it's possible. I just found this out when a tint I asked to be made turned out to be slightly too dark. The people at Home Depot showed me a selection of colors that could be made from the tint I already had and turned it that shade for me. Nice!

Now if you're wondering how those “oops” paints get returned, they don't. Those are mistakes made during the tinting process that produce the wrong color, or maybe you ordered a quart and the member of staff mixed a gallon by mistake. That goes on sale because you didn't ask for that size and shouldn't have to pay for it.

4. Concert Tickets

You bought two tickets to see U2 or Coldplay at a huge stadium, but then a week before the gig your boss tells you about a last-minute conference out of state. You're now stuck with two tickets that you won't be using, and almost all concert tickets are non-refundable.

The best way to get a refund is to sell them. It's that simple. Craigslist is the best resource in my opinion. List the tickets at face value, and you'll probably get your money back. If you want to make sure you get something for them, undervalue them a little. If the concert is sold out, don't think it means everyone is scrambling for a ticket. Scalpers and online brokers often buy up hundreds of tickets and resell them at a massive profit, but it doesn't always work out well for them (Charlie Sheen...oh dear).

But don't go down to the box office to get a refund. You'll be laughed at 99% of the time.

5. Sale/Clearance Items

This one's a toughie. The bright red or yellow sticker on the box saying “clearance, no refunds” should make it fairly obvious that you won't get a refund on the item. But a little ingenuity can help. Many of the big stores like Walmart and Target will take back those clearance items in spite of the warning. As long as it's in the original packaging, you'll probably get your money back, or at the very least some store credit.

6. Bespoke Clothing

Now we go from tough to really, really tough. Bespoke, or tailored, clothing is very difficult to return. And the reason is obvious. The only person it fits perfectly is you.

For a start, think about why you'd want to return it. Is it buyer's remorse? That won't fly with the tailor who sold you the suit of pair of slacks. Tough.

You can always try and claim poverty, but that won't work either. To be honest, your best bet here is to list it on eBay. With its worldwide reach, you'll find plenty of people with your measurements, and you may even get more than you paid for it. And if that fails, donate it and write it off on your taxes.

7. Opened Video Games, DVDs, and CDs

This is another rotten one to negotiate. In the past, no problem at all. But these days, with copying as easy, and as widespread, as ever, stores have to be ultra-vigilant. Personally, I don't blame them. If they gave everyone a refund who came back a week later with an opened game, they'd go out of business.

Now, there is definitely no problem in getting an exchange for the exact same title. If you have a scratched disc and want a replacement, you'll get one. If someone got you a PS3 game and you own an XBOX 360, they should swap it out for a different platform.

But what if you get a CD or game, pop it in, and instantly hate it? What then?

Well, you could simply sell the item. You won't get top dollar for it, but it's better than having something around that you'll never watch, listen to, or play. Another option is to "regift" it. Of course, it should be in perfect condition if you do that; no one wants some scratched-up DVD or CD or a game covered in fingerprints and Cheetos crumbs.

So, that's my list of the top seven items that are non-refundable and have workarounds. Did I miss one? Do you have any additional advice? Leave your sage wisdom in the comments below.

Like this article? Pin it!

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Ask The Readers: Are You Getting Your Tax Refund this Year? (Answer to win $10!)

Linsey Knerl — Tue, 28 Jul 2009 17:51:58 +0000

Winners update!! -- Congrats to the following winning submissions:

No Refund.. Submitted by Misty (comment #32): "We aren't getting a refund this year, we adjusted our tax form so we paid a little bit and got more money to use during the year."
@coloradoeyes: "I plan yearly with accountant 2 get as close 2 $0 refund as possible. I want 2 earn interest on $, not let the govt."

There's been a lot of buzz online about tax refunds lately. Some filers of 2008 returns are finding out that they can't even get their own state refund, due to issues with state budgets. Others have been keen to coming problems for some time, rushing to their employers to demand the maximum deductions and even getting their Earned Income Credit payments coming through their paychecks.

As questions of solvency and preparedness begin to become mainstream in every household, what can tax-payers do to avoid granting the government an interest-free loan on our own money? Do you even care? What can you recommend for the uncertain future? We want to hear about it!

Do you have a tip for making sure your tax money comes back to you at the end of every year? Are you a stickler for making sure you get your tax money up-front, either by claiming huge deductions or even exempt status? Are you likely to hand everything over to your accountant and say, "Here you go. Let me know how it turns out?" Do you have some special advice for the self-employed? Or are you someone who LIKES getting it all back in one lump sum, as part of a informal savings plan? Give us your views and insights into tax refunds now (before the year runs out), and we'll enter you to win one of two $10 gift cards from Amazon!

Those of you who aren’t familiar with the “drill,” read below for full details:

Win a $10 Amazon Gift Certificate

We're doing two giveaways -- one for random comments, and another one for a random tweets.

How to Enter:

Post your answer in the comments below, or
Tweet your answer. Include both "@wisebread" and "#WBAsk" in your tweet so we'll see it and count it.

If you're inspired to write a whole blog post, please link to it in the comments or tweet it.

At the end of the drawing, we'll update this post to include (and link to) all of your helpful responses.

Giveaway Rules:

Contest ends Thursday, July 30th at 11:59am CST. Winners will be announced after July 30th on the original post and via Twitter. Winners will also be contacted via email and Twitter Direct Message.
You can enter both drawings -- once by leaving a comment and once by tweeting.
Only tweets that contain both "@wisebread" and "#WBAsk" will be entered. (Otherwise, we won't see it.)

Good luck!

This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Impulse Shopping: A Controllable Handicap

Nora Dunn — Tue, 01 Jan 2008 00:48:49 +0000

A good friend and former client of mine was always cheerfully depressed in our regular financial review meetings. Inevitably at each consultation she had either made no headway on her debt repayments, or even worse had dug herself a little bit deeper into the red.

Her weakness: impulse shopping. All too often she found herself in a store searching for a black skirt for work, and walking out with a red shirt, blue skirt, three scarves, and two pairs of jeans - but no black skirt. Then off to the next store looking for a coffee table, walking out with bags upon bags of other items she "needed" but didn't actually need.

To her, the need was to walk out of a store with bags in her hands. Even if she didn't find what she wanted, there was some part of her that was satiated from an afternoon spent shopping if she could return home with all sorts of new loot in her possession. You could say her eyes were bigger than her pocketbook.

Guilty Spending

Inevitably, she would feel terrible about her purchases within a week. But by that time she had ripped all the tags off, used or worn the items, and made them part of her life such that even though they were constant reminders of her inability to afford them, she couldn't let go of them.

And in this way my friend passed many debt-ridden years of her life: living amongst rooms upon rooms of "stuff" she didn't need and couldn't afford in order to have the satisfaction of a day spent shopping and buying.

Impulse shoppers: if this is a tune you know well, you are not alone! There is indeed something strangely satisfying about carrying all those beautiful paper bags out of the store, taking your loot home, and finding a place for that perfect ornament, pair of shoes, or kitchen utensil.

But if your pocketbook doesn't agree, there is a solution, which my friend discovered and has been using successfully for years.

Two Day Rule

Feeling satisfied with the day's purchases, my friend will carefully set her shopping bags in a corner of her home and not touch them for two days. This is a hard and fast rule, not to be broken. As much as she needs what is in those bags, she cannot even look in them for two days.

After the two days are up, she allows herself to pull the items out of the bags, but not to take any tags off. She lays them out for a third day to admire her wares and to truly decide if she needs the items she bought.

Return Policies

The other trick to this scheme is that my friend only buys items from stores with a cash refund policy. Reason being, after the three day trial period, she inevitably returns most of the items she bought on impulse. A few prized possessions might make it through this rigorous process, but if they survive the trial period, she is happy to keep them and absorb the financial consequences of doing so.

I am in no way advocating a shopping spree with subsequent returns of the items purchased as a financial plan or solid financial advice!

But I will say that my friend managed to dig herself out of a mile-high pile of retail debt by recognizing her weakness for impulse shopping, and using this disciplined approach for managing it in the best way she could. Just like yo-yo diets, using extremes (like stopping something cold turkey) to manage a problem is rarely a viable long-term solution; creativity and a little discipline can be much more effective, and possibly even fun.

This article is from Nora Dunn of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: