Tuesday was Tax Day. Did you file your taxes on time? We did! Filing our taxes were a little different this year: we’re married, we bought a house, oh and had a baby! With all these changes, we didn’t feel comfy doing them ourselves this year. So we enlisted the help of a CPA recommended by a friend. With the advantages of technology, we never even had to meet with her! We gathered all the paperwork, then scanned and e-mailed it to her. After a couple emails back and forth about details, we were done! She told us how much we’d get back and now we’re just waiting for the tax fairy to leave the money in our bank account… 🙂
So, with a number in mind, we started thinking about how we would spend the refund. Savings? Pay off debt? Splurge and spend it on the house? Here’s a cool info-graphic from Mint.com (I’m contemplating using this site to track our finances) that helps map out how you could spend your tax refund:
Well, we were lucky to get back enough to do a little of everything. Here’s the breakdown.
2011 Tax Return Allocation:
A small price for a confusing task!
My ambitiousness has left me with a substantial amount of student loans (Undergrad+Grad School, fully paid for by ME adds up!). I’ve been slowly chipping away at it and my goal is to have them all paid off by my 30th birthday. Since that is now only 3 1/2 years away, I better get working on that! So, we’ve dedicated a good chunk of the refund to payoff one of my loans. Yay!
We’re really good about not putting anything on our credit cards that we can’t pay off the next month. But there is a little lingering debt from a before we were married. So, with this, our cc debt will be almost gone!
Avery has a Gerber Life College Fund that we contribute to monthly. In addition to that, we’ve decided to put away the refund money we get each year for claiming him as a dependent. After a few years of this building up, we’ll invest it.
So, with the little leftover, we’ve decided to splurge on something we have on our Honey-Do List. Not necessarily something we need, but we’d love to have…a deck! Perfect for use this summer… grilling, enjoying the weather. This empty backyard will soon become our outdoor living room. We have plans and permits to work on before we can build it…more coming soon…!
How are you spending your tax refund? Do you do your taxes yourself or have help? I think we’ll try it ourselves next year since we have a nice guideline from this year. Have you used Mint.com? Should we give it a try?