Well, yesterday wasn’t my favorite day of the week. Felt about two feet tall due to a certain unexpected incident that wasn’t entirely my fault but I felt responsible. Then while at school a friend at work was informed that they had lost someone they were close to and that was hard to see her have to continue through the day and hold it together. Let’s just say I’m glad it was Friday and not the beginning of the week. It wasn’t much of a “fun” day and it wasn’t a pretty place in my head in the morning particularly. Add to that they rainy and cold weather and by the time I got home, I just wanted to get my mind elsewhere. So, I watched a few episodes of a tv show I thoroughly enjoy and then set about getting things together to do my 2010 taxes.
I have a couple of folders I keep school receipts, medical bills, loan info, and mileage in. I got all of my totals for various items put together and then got into Turbo Tax Deluxe to get going. Love how simple they make doing your taxes. I actually enjoy it. The step by step questions that are put in plain English as opposed to ridiculous calculating jargon is so much more helpful. Plus they check for errors several times through the process and heaven knows I’d be bound to make one as math and I are natural enemies some of the time. 🙂
I’ve never owed for my taxes for as long as I’ve been working (high school, college, present). I’ve gotten a refund most years. Interestingly enough, Dave Ramsey is of the belief that you want as little of a refund as possible because if you get a higher refund it means you are paying more during the year for federal and state taxes than you should be. I can understand that, but at the same time, seeing a refund amount at this time of the year can be quite exciting as it will allow myself and others the opportunity to invest that money well, put it back into the economy, etc. A couple years ago that refund helped pay for my car and a lovely cruise to the Bahamas for a friend’s bachelorette party.
This year I’m getting a nice $1047 refund ($715 federal and $322 state) and according to Turbo Tax, my chances of getting audited are extremely low (not surprising at all – I’m not some crazy person who hasn’t paid in years nor do I make insane amounts of money). When I was setting up my goals for this year, one of the financial goals I set (which I did not share in one of the posts below since I wasn’t 100% sure how it was going to work out) had to do with how I was going to use that money. Knowing how much I’ll be getting now, I can allocate that money. Here’s how I’m envisioning this working out…
1. $585 to pay off one of my loans completely. I thought I had one loan that was down to just $300 or so, but when I checked last night, I couldn’t find that info. This is the loan with the smallest amount left, so I’ll just get rid of it. HOORAY!
2. $200 to savings/emergency fund
3. $200 to checking. Let me explain. I’m a little OCD. I can set an amount on my checking account where it will alert me if I fall below that at any given time. In the last couple of months I have had things come up with my car among other various situations that have caused me to dip below that and I’m just not a fan of doing that. I like to be aware of where things are at and know that if a situation arises and I can’t transfer money from my savings account, I can take care of whatever that emergency situation is without worrying about whether I have enough money in checking. Yeah, it’s kind of like I’m setting up two emergency funds, but I’m just trying to be careful and mindful knowing that life happens. Adding that $200 to checking will put my mind at ease I guess.
4. $62 left… Who knows? Maybe I’ll visit one of my happy places – Shoe Carnival or get Just Dance 2 or get tickets to see Keith Urban in June or … The possibilities are endless. Yeah it’s just $62, but let’s go in with a plan.
And there you have it… Unfortunately, with all the lame duck sessions our congress had in December, they passed tax legislation late that allowed some deductions to continue (such as the teacher expenses!) LATE. That means that even though I filed my taxes already, they won’t start processing some refunds that have certain deductions until February 14. Based on that info, I should be getting my refund in my accounts around February 25. It’ll be like a really exciting pay day. I get paid for work that day as well. 🙂
Do you have yours done?