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TMFHousel (91.88)

The Joy of Overpaying the Tax Man

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August 16, 2011 – Comments (7)

Earlier this year, I found a pleasant surprise: I overpaid my 2007 taxes by several thousand dollars. I was still in the three-year window to file an amended return, did so, and received a refund within weeks.

Another surprise: The IRS paid interest on the overpaid funds during the entire four years. The interest rate works out to around 4% a year -- far higher than what I could have received in a money market fund, and way better than the stock market over that period.

I don't know whether to be happy or sad that overpaying my taxes turned out being one of the best investments I've made in recent years. Maybe I'll do it more often. 

7 Comments – Post Your Own

#1) On August 16, 2011 at 5:52 PM, LANaturist (99.15) wrote:

Just think how much better you would have done if you had purchased GLD or physical gold in 2007.

 

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#2) On August 16, 2011 at 6:11 PM, Predaking (29.75) wrote:

How did you find out in 2011 that you overpaid in 2007?

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#3) On August 16, 2011 at 6:16 PM, TMFHousel (91.88) wrote:

^ I was preparing my 2010 taxes, needed some information from my 2007 return, and spotted a glaring error. 

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#4) On August 16, 2011 at 6:46 PM, awallejr (85.54) wrote:

Don't forget you now have to declare that interest on your taxes heheh.

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#5) On August 17, 2011 at 9:56 AM, PhulishMortal (< 20) wrote:

Why is it that errors glare?  Are they angry because they're wrong?

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#6) On August 17, 2011 at 10:27 AM, outoffocus (22.75) wrote:

Maybe I'll do it more often. 

If you had put that money in precious metals you would have returned over 50% over that same time period. lol

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#7) On August 17, 2011 at 12:01 PM, L0RDZ (82.16) wrote:

Wow... kind of sad..

 

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