Monday, March 15, 2010

How Do You Spend Your Tax Refund?

I finally filed our taxes tonight. You would think working at H&R Block that I would have done them sooner. But no, I procrastinate. Having four children and the Making Work Pay Credit give us a pretty good chunk of a return. If it weren't for the kids we wouldn't get anything back. We don't have a lot taken out of the paycheck. Better to have the money in hand each pay period than to loan it to Uncle Sam and get it back at the end of the year. Because of the kids our tax liability is low to zero every year which we love.

After I filed I sat down with a notebook and my return and budgeted our refund. Now I'm not going to tell you how much we got back total but I will give you some idea of what we are going to do with it.

Each person who worked this year will receive up to $400 back on their return. If you didn't work or worked very little you will receive up to $400 too. So I decided that since the President wants us to spend some money in this poor economy we should split the amount we will receive and use it as blow money. I have lost 27.5 lbs so far and think that a new spring wardrobe on the government is exactly what I deserve. Well of course Mikie doesn't., so we compromised. I can spend $100 on clothes, he gets $100 for whatever he wants. Hopefully clothes, cause he's lost 2 pants sizes too. But nonetheless the rest will purchase new living room furniture and I can move the money I was saving for it to something else.

The next thing we agreed on was to take the amount we received from the additional child tax credit and split it between the four kids mutual funds for college. It won't be a huge amount but it will help in this year’s contributions.
We received a month's worth of Parent's Day Out fees in the daycare credits so that will be budgeted for PDO. Which will free up some money in the monthly budget.
Then we had about half of the refund left. I was thinking I would use it for school, my teaching license runs out next year and I've only taught 4.8 years of the 5 years that I needed to teach on this license. That's what 4 kids in 4.3 years gets ya.

Anyhow, after talking with Mikie we decided it would go into the used car fund. So I'm keeping my eyes open for a newer Suburban. As for school, Mikie will graduate in May and we still have money saved from his degree. I can also use military spouse options. Now I just have to decide on what classes I want to take.

So I know that most people use their refund for vacation, to pay off bills, or buy a car. But what will you do with your tax refund? Leave me a comment and let me know!