We're broke.
Between getting used to life as a single-income family, paying my hefty deductible for Baby C's pregnancy and budgeting so G can go to preschool and ballet classes next fall, money is tight these days. I feel like I know where every single penny of DH's salary goes.
Since my dad is also my tax preparer (a job he also does professionally), DH & I are at the bottom of his "tax to-do" list. Most years, we are lucky if we file our paperwork by April 1st. This year, I know I won't be filing until the week of the 11th, just days before the deadline (which is Monday, April 18th this year instead of the traditional April 15th deadline).
But that hasn't stopped me from mentally spending our refund already!
Not that our refund is big -- in fact, my dad already warned us that it's our smallest refund in years because of my decision to quit working. But when you're living on the financial edge, even a small amount helps.
1) Hospital bill-- Our top priority is paying the hospital bill for Baby C's
delivery. Thankfully, we've already paid (out of pocket, yuck) my OB for all my pre- and post-natal care, but it still leaves us with a gap of several hundred dollars before we meet our out-of-pocket maximum for the year. 2) Carpet cleaning-- If there's any money left from our tax refund after we pay the hospital, it will go to a team of professional carpet cleaners. Over the past two and a half years, G has done a number on our carpet, particularly in our family room. It's spotted with juice stains that, no matter how soon or how hard we scrub, just won't go away. It's disgusting, and a source of embarrassment for me anytime we have people over. We need them cleaned before Baby C arrives, otherwise the poor kid won't have anywhere to do tummy time.
3) Tree trimming-- We have a tree in our backyard that stands at the intersection of three property lines. No one wants to take responsibility for this tree, which tips precariously in the direction of our sunroom. Fortunately, one of my best friend's husband owns a tree-trimming business and can give us a great rate... Unfortunately, the tree's massive size means even his steepest discount will still cost us a few hundred dollars. So there goes the rest of any refund we may receive.
our credit card debt is going totally away. well mostly totally away. One is going all the way gone and the last one is being reduced by 3/5. I'm calling it a win.
*Next year I hope to use our refund --if we get one-- as spending money for our much anticipated european trip. paying off the cc's is a prereq for getting to go on a blow out vacation*
We have ours already spent too....new grass for a yard full of dirt.
I put mine away for my wedding!
we barely did ours,I need to actually see the $$ in our bank acct before I make any plans,scared they may just change their mind and keep it!
We filed as soon as all of our paperwork was here so we've already spent (and saved) our tax refund! Thank you, N, for the large amount we got back this year - woot! :)
We:
- paid off some debt
- saved for vacation
- purchased some things for the house that have been on our list
- had a little fun :)
For the first time since we've been married, this tax season made me smile instead of cry!
I am a tax return spender. The sad thing is it's usually on something I need, a bill I have to catch up on, not anything exciting like shoes or a trip to Europe. Sigh, maybe next year... :)
I'm a spender AND a saver. :) We'll put away half into savings, then use the other half for some kitchen updates (new above-the-range microwave and a nice backsplash). :)
Yeah our tax refund has already come and long ago went. This year we grew up and paid off our minivan, socked some away for savings and paid our rent a month in advance - just for some extra breathing room. Hopefully next year I'll get that new wardrobe that has eluded for the past 5 years! :o)
My best, Lynn
Like you, we're having 2 trees cut down. That's about $1000. We're using the rest to pay down credit cards. Exciting, I know.
OMGosh, I remember when we were young and got money back.
We never do now since we're retired and having nothing to claim.
However I remember dreaming big when that tax money was due.
New carpet, or as you said, clean carpet.
Bills accumulated during the year.
A new table or other piece of furniture that was put off during the year.
Our youngest daughter who has four children had her refund planned and I think she's received it and spent it by now!
Easy come. Easy go.
Enjoy these years with your kiddies.
Best always,
Barb
www.barbwhitti.blogspot.com
Writing: the ups and downs
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well, we got a pretty decent return. we had plans of taking 95% of it and paying off our car loan. and then car #2 (the old crappy one) needed fixing. we shelled out $1000 to get that fixed and it still needs more (thankfully we found a friend to fix it so hopefully it will be A LOT less than expected).
i'm a saver, so some will probably go towards hannah's preschool in the fall.
I think your list sounds like a great plan!! Those hospital bills are always a killer!
Our plans with our tax return - (this was our smallest ever as well, do to my self-employment AKA side hustle doing so well this year) paid the escrow difference - taxes just keep going up it seems, the kids are getting new carpet in their rooms this week, new beds (used, but new to us!!), new mattresses, lots of IKEA deocrations for their rooms, and I think that about spends it all!!! OH wait, I almost forgot - paying State taxes - BLAH, the self-employment got me here too!!!
We will be paying a hefty tab to Uncle Sam.
DH changed dealerships early in the year & the new dealership did not take into account the money he had made at his previous (same owner, so we thought they'd be smart enough to do this) and DH exceeded expectations...
My exciting plan is to pay off some bills and use it to live off for the next year
We got ours back already too. It went straight to savings other than what we gave to our church.
We always try to break even on our taxes and don't want to have too much withheld/get a refund, but we usually do the same boring old thing every year:
1. File early, and take our federal refund as early as they can give it to us
2. Keep the money from late February-April 15th, pretending it's ours, and feeling happy about having it in our account earning interest
3. On April 15th, use that federal refund to pay off the whopping state taxes we underpaid that year, because somehow, no matter how much we withhold, the state of Ohio wants MORE
Wow, that is probably the most boring answer ever.