Don and I always get our tax return in Feb right around my birthday. This is when we have gotten our Christmas gifts in the past, because we don't have money in Dec, we have money in Feb... lol... But this year we have it in both. So we started making a list. Has anyone else experienced the phenomenon of when you actually have money you are more careful with it? We are running into that right now. We have $2000 in savings. We are all stocked up on clothes; I made a bunch and the after Christmas sales fueled the rest. (- kids need a new pair of shoes each and unders for Alex.) We have a full pantry, and we are doing well on entertainment (via crazy grandparents and a few things via us for Christmas). We don't really NEED anything... so then it comes down to wants.

So what to do with the tax return? Well, at least $1000 more in savings is one. Then go back to the list of wants and needs. We have one TV, and that one has a large green spot on the upper left hand corner. Don says this is a message from our higher power that a new tv is in order. lol... in his defence, ours will die in a matter of months. So he is right... but where I would be content with a small nice tv, Don would like to get a huge "GUY" one. We settled on something in between that I would have never ever bought myself. We are getting a 32inch HD LCD TV. This costs around $1600. Am I nuts? Well it took him two years to talk me into it, and I told him he had to wait until we could put at least half down. So not completely nuts I guess.

What about you guys? Anyone else planning their Tax Return $$ already?

Val

I am! I can't wait ... LOL This year, DH isn't here so I get to decide how to spend it and I'm so much better with money than he is.

Our savings is wiped out, so a good portion of our refund will go there. We also have about $500 worth of debt that will be paid off and then I'm going to redo my bedroom (a new comforter set, nightstands and a dresser). Depending on how much it is, I may get a love seat for my living room too. We moved a year ago and I had to get rid of all of my furniture before the move and so I've been slowly trying to get it all back, piece by piece.

In the past, we have used the money to pay off debt. This year, we have no debt besides the truck, and that payment comes out of the business savings. So, we're going to spend about $500 of it on some things we could use, like new towels, a new infant carseat and a new carseat for Kaya, a day of thrifting. The rest is going into savings.

Having been in a serious hole in the past, we're really wanting to work hard at putting as much as we can into savings and maintaining a simpler lifestyle without filling our house with "wants". We still treat ourselves once in a while, but we can do it as good deals come up. Like, we bought a whole Sirius set up for the truck and house last month becuase they had a great deal at Radio Shack.

We have both feel really good about watching our cushion fluff up more and more.

Edited to add: it would absolutely *kill* me to spend that much on a TV! :eek:

Ours is already spent as well. (next years is spent as well).
This years is being spent to:
purchase a whole house generator
pay off small credit card
and the rest into savings (about $200)

Next years will be spent to:
pay off the washer and dryer (2 year no interest)
pay off the truck (if it isn't already paid off)
pay off tractor (again if not already paid off)
pay of a credit card
the rest in savings (if anything)

We usually only get around $1000 back, so it usually just goes onto our line of credit. Last year we were debt free so it went into savings. But over last summer we bought a house and it was previously a pot grow-op so needed/still needs tons of work. But it's sturdy and cozy and it's ours. But the line of credit has about $5000 on it from painting, replacing light fixtures, plumbing in a toilet downstairs, and various miscellaneous things we needed to do to make it liveable. Oh well. It is an investment when you consider we could already sell it for $20K more than we spent.

Kerri

Ours is soooo spent, and my dh is worse than me! He only claims single during the year, so we get a ton back..... We're talking close to 10K!!!! So, we borrowed almost 6k for the new furnace last year, that's the first payoff. Dh wants to save some and pay for a paved drive and pay off some cc. I want to save most and pay off the cc. I'm saving for our last baby! So, I'd rather have a baby than a driveway! It's 3600.00 for the baby and who knows how much for a driveway. While we don't plan on getting pregnant til next year, It's a lot of money to save....

We are putting ours into savings. Dh will take a little of it and get his first tattoo. I don't need anything. Neither do the boys.

Dh is trying to sell one of our cars. That money will, also, go into savings.

Val, we've had a green spot on our tv for years. Take a magnet and rubs it over the spot. Usually that will help.

it will go into our "moving fund" so that when we move come November, we will be able to get an actual moving company

Whatever else is left should go to bills, which we are caught up in, but would love to get ahead even more.

Meeshi... it gets worse... he spent his small part of the inheritance on a "XBox 360" for himself for the holidays. So by the end of this year we will have about $3000 in toys for him (and ds actually, because he got a DS and 6 (count um... 6!!!) games from familly.) We don't watch tv during the week and we don't have cable. I think it a waste... but...

Oh Suz... ours has been there for years too. I will try the magnet, but since I have given in now, I seriously doubt I would be allowed to go back on what I said. lol...

I would have been happy with a $400 21 inch that we could put away when we are not using it... but there is a space in my heart that loves the kid in my dh, and sometimes it is ok for him to spend his slave wage on that kid. Even if it makes me CRINGE to think about it. lol...

Andrea... we claim as many as we can and we still get about $4000 back because dh only makes about $20K per year for all 4 of us. My friends claim 2 and they have 5 people in their family and they get about the same as we do back and they make twice as much. They live VERY comfortably and still get to dump money on debt once a year or pay off something they have wanted or buy something with cash. I think of it as a forced savings for them. And I also think it is a great idea. :D I have told Don that as soon as we are living more comfortably I think that would be a great way to save it... that way if we ever don't have the self control to put it in the bank ourselves, good ol' uncle Sam will have done it for us... and if we DO have the self control to put cash away, we can amend the W2 form.

If you read my post to Bobby Jo's testiment to pay off her debt this year, we have only been doing well for 5 months total. So we are a little money happy right now, and I feel like if I know that and I take care to plan and not ever impulse buy we will actually pull out of this with all of our goals intact. Savings, a few fun new toys, and also a peice of mind that we are doing this work for something that feels good to us. Like a nice house to live in etc. I feel like we are so close to the end of our time with a tight belt that we celebrate quite a bit. And I love to see my dh so happy and confident in what he has done. He worked so hard for so long to become a cop... we all did.

We have also sold a car this year... for $900 which is going directly to the one large cc we have still to pay off from when Don was in college. Taking a big chunk out of that is my largest goal this year with the excess that we will get pay check to pay check.

Now that these lists have been made and we have settled the "where is the money going" questions, dh and I are starting spring decluttering. Look forward to many a post on that process. It will be a long one. lol!!!

Val

We barely get any back, we claim more and just about break even. I'd rather have my money throughout the year to save, gain interest...or to pay off bills and not pay interest on those. LOL.

But we do get back a small amount, and use to get back from $500 to 2000. Those days we'd always take a small amount for a treat, and the rest went to bills. I would have loved to have spent it all, but if we had, say, a credit card balance or things like that, we always needed to pay that before spending more than $50 each on a treat, or taking $100 for a day trip to the snow for us all.

Dh would love a $1600 tv. LOL. Maybe once all our bills, all credit cards, etc. are paid off 100% and we have a good savings cushion. Maybe. LOL. He'd be in heaven...boys and toys, I swear! :vent: :lol:

Oye! I would have a heart attack if we spent that much on a tv! LOL Then again, our only TV is on the way out the door before we move, currently it's hiding in our room. We watch so very little tv that spending that much would be crazy for us. I especially couldn't do it if I owed on a cc... that's just me. The feeling of freedom from being debt-free would be so much better than a tv imo.

Ours is spent. To make a long story short, we're selling our car and we'll be a single-car family for the next year or so. A little of the return will replenish our savings account from paying off the amount of the car that we owed after selling it. That takes care of one debt. I have school loans to repay and our (nearly paid-off) van payment and all of the return will go towards those. We're expecting an additional $1500 from something else and that's going to pay for a ticket for step-dd to visit in April and the rest will also go towards my student loan/savings. The kids and I are moving in May/June and DH in Sept/Oct (leaving military). We're hoping to purchase our first home/property in the next few months so all of our money is spent already. We've also been selling off things that are just sitting around here useless and taking all of that money and hoarding it in savings or towards debts.

dh started a business this year so i'm curious to see what happens to our taxes. hmmm....we have some credit card debt. i would LOVE to see us replace the nasty carpet in our home with some wood floors. *snap* oh...sorry i was dreaming ;)

no return for us. We owe. But, we aren't too upset about it. Our goal every year is to break even as we don't want the government earning interest on our money. But, we sold a bunch of dh's options to pay off the rest of my student loan before I had the boy, so we jumped up a tax bracket. Hence, we owe.

But, when I read your post the first thing that came to mind was:

If you read my post to Bobby Jo's testiment to pay off her debt this year, we have only been doing well for 5 months total.

I know it's fun to get a few toys. Really, I know, but if you have credit card or vehicle debt, I'd really focus on the above. Maybe put half on debt and half on fun. Or all on debt and safe for the fun with the $$ you'll save in interest payments.

Nothing feels as liberating as being debt free.

We should get money back; we did last year and DH told me he didn't change the withholding. But we also didn't do the 125b plan last year, so we'll have a bit more taxable income.

We always do different things with the money; save some, splurge some, pay a bill if we have one. This year we are going to Hawaii on the 10th of February. Airfare is paid for, we're staying in our timeshare, and I've been saving for the trip, so the tax refund will help decide how many extras we do.

oh yea..i forgot...we also HAD A CHILD!! LOL

Maybe put half on debt and half on fun.

Hell yeah. We wouldn't think of anything else. We are putting money away in savings, we already have $900 this month to put on the CC that is the highest intrest from the sale of the car, and we have also completely caught up on everything else, not to mention putting nearly $1000 on two cc's already... nothing is more important than getting out of the things we need to take care of, but there are some things that are AS important: like living a little. ;) We are doing both.

Dh is a hard core "spend it" guy... I am just the opposite. We temper each other. It has been SO long since we have had money to spare that we are very good at doing things like cutting down food expences, buying everything we need used, selling things online and locally when we need extra cash, working within what we have and not putting extra on credit. Stuff like that. We have done it for years... now this is mixed with being able to get what we want. I think its awsome. I am not out buying an Ipod when a box of cd's for $20 to burn on the computer would work, or getting a new computer when this one works fine but it's really old. We only have one car, and we don't have any extras around the house (except cable internet) and are not planning on getting things like that until we have paid things down. But we bought used bargin basement furniture like 6 years ago... it is now trashed. We just bought our first duvet cover for a down comforter we have had for two years for a bed that is still on the floor. I want to be proud of my home and feel good with the work we have accomplished... and it is just as important as getting out of debt. I know it will happen... it is a major priority in our lives... but right now... we want to live a little too.

We are also taking the first vacation in 3 years this spring. Just me and dh. we have a $400 limit for that. It is the off season, and I think we can make a kick ass vacation if we go to a place with a kitchen and hot tub next to the beach. It has been SO long since we took even a day off (dh didn't even have Christmas off, nor Christmas eve, or New Years) and I think some things like this are worth it.

Sorry to sound a bit defensive... I am actually not. I feel really good about the choices I have made. If it was dh's world he would have a new car, a new tv, and nothing in the bank the second he gets this job. We blend well... he lets me play a little and I keep him on the ground.

oh yea..i forgot...we also HAD A CHILD!! LOL

You should get some back if he didn't change his claim form... even if you did start a buisness... but it will cost quite a bit more to get your taxes done now... and I suggest you get them done instead of doing them yourself. Doing buisness taxes is a PITA!

Val

Sorry to sound a bit defensive... I am actually not. I feel really good about the choices I have made. If it was dh's world he would have a new car, a new tv, and nothing in the bank the second he gets this job. We blend well... he lets me play a little and I keep him on the ground.

you didn't sound defensive at all. You sound like you know what you are doing and are doing exactly what you need to do - be good with part and have fun with part. Rock on.

You should get some back if he didn't change his claim form... even if you did start a buisness... but it will cost quite a bit more to get your taxes done now... and I suggest you get them done instead of doing them yourself. Doing buisness taxes is a PITA!

Val

oh..we'll probably get a ton back.

and we have a great tax attorney (we trade out work now!!!) i would never do it myself b/c we never think of all the little things. so worth it imo!

I am so confused about how much we'll get back, but probably we'll get a little back. I'm not counting on anything, though. A lot changed in 2005 for us financially so I just never know what to expect!

We've been doing well for about five months too, LOL, Val. So funny we're in the same space. For us the way we've been doing well is we have gobs of cash from the sale of our house. So yeah, we've gone a little crazy with it. Not too much though. I've been able to invest in a new hobby, knitting, and dh bought some "toys" - a superhuge, nice telescope for starwatching with Katie, a $300 guitar (really good deal though, a Seagull S6 solid cedar top made in Canada), an uber-nice SLR digicam for me and a couple of lenses for it, and I splurged and spent $100 on books for Jake...that's his favorite thing. And I just went crazy and got what I really wanted to for the kids for Christmas...so even though I'd bought and stashed a LilyDoll for Katie in June, and bargain-hunted the clothes for it at TJ Maxx, she asked for a specific baby doll that was $25, so I got that for her with an accessory set. Wow. Big spender. ;) But seriously I feel like I've just finally been able to do things like that: got us all set up with nice winter gear, ice skates and snowshoes, warm woolies, yarn that I knit into hats and mittens and scarves and sweaters, warm coats and extra snow pants, warm socks, flannel sheets. What a spendthrift I am! :D

Anyway, having spent so much on both wants and needs in the past few months, I'm very happy to squirrel away almost all of our tax return. We also got several hundred bucks each from extended family - that's what bought the guitar, Matt's money from my mom and his dad - so we have that to splurge with too. I have never really had money like this so it's a new feeling. Usually there's no question of what to do with the tax return. It's simply spent catching up on bills!

(Matt said to me yesterday, as we were reminiscing about our past, that some months he had no idea how I did it - meaning paid the bills and kept our accounts fairly current. I told him I didn't either, that it was a juggling act that I had no idea how I pulled off every month...we never had as much coming in as going out, and managing it all cost me a lot in energy and emotional health, so much I never realized it fully.)

I think most of our tax return is going to end up getting spent on bettering our new little cabin...it needs a lot and once we pay cash for it and the twelve acres, we'll quickly be cash-poor again! Probably it will go toward a generator or new solar panels, some paint, insulation, that kind of thing!

Lauren, I totally hear you on the juggling thing. We were there and it sucked. It makes such a difference now, to be able to get a utility bill one day and sent out a payment the next, knowing it's covered. It takes so much stress out of my life. My guts used to churn when we'd have to pay late, or even wait for a disconnect notice.

J is self employed, and even after a good year, once you take out all of the business costs, we get a good deal back. Having our taxes done for us costs about $200, but our accountant covers all of those things that I would have no idea on. That $200 is well spent, IMO.

Lauren and Meeshi... I remember when we were all in that boat together. Constantly putting off this bill be cause this one was later. Ugh, how much I HATED that. Now that everything is current, and every big thing is getting paid (except my school loan... that is in forbearance until Oct and we are concentrating on the higher intrest bills first so I will not pay on it until then) we feel such a nice space to breathe. It took SO much out of me to have it go month to month, hand to mouth, or I should say "hand to debtors".

I'm very happy for all three of us! It's awesome to see good fortune come into our lives, all at a similar time. :) And yeah, it is a great feeling to get a bill and pay it without worrying about whether there is the cash in the bank for it!

Meeshi, a good point: if you're self-employed you really have to have someone do your taxes, IMO (unless like Allison/arasmama, you're just totally incredible at it!). I am a real DIYer but the taxes I just have to have someone look over and do for me. This past year I didn't work very much in my business as a massage therapist, so it's fairly straightforward, but since we sold a house, I'm having the accountant do it. If you have any significant income and expenses from a business, it makes sense to make sure that it's being done right by paying the accountant. Definitely.

We are putting every penny on debt. I feel a very strong pressing need that our family must get out of debt as soon as possible. I think times are going to get very rough financially for all but the very upper crust of society.

If I were in your situation.....here is what I'd do. If you don't already have at least 4 months before tax total income in savings, I'd put the money into savings. If you do, then I'd put the money towards retirement funds. (that is assuming you don't have any debt you can put it on first)

I'm still waiting on a couple financial forms and then we'll file our taxes. We probably won't file until mid to late Feb.

Michelle

I am self employed and I do not get money back - I usually owe about $12K. I have been doing my taxes and everyone else's (since I used to run a taxation business) for 20 years (OMG am I that old?). So I know I am maximizing my tax breaks through aggressive investing within RSP shelters, etc (Canadian, eh!) I may contemplate bringing my earnings up a notch and, if I do, I will have to take on an employee. At that point I will incorporate and then my tax situation will be a whole lot rosier!!

My entire refund will go into my savings account, which is the "downpayment on land" fund. Once I sell my truck and add that $ too, we will almost have enogh to buy something! I figure by Feb. '07, we'll be ready :D

D's refund will go towards his debt some, and the rest goes toward his daughters' tuition.

I sort of have a plan, it depends on how much we get back :) First thing, I need new shocks on my van, that will set us back a few hundred LOL. Then I'd like to make a large chunk of an extra car payment to dh's car. Then I need about 200 to start Bryce on his sound therapy. Then I'd like a 5 bike hitch style bike rack. Anything left over will go to savings and maybe just maybe a new sofa...