Getting a tax refund? What’s YOUR plan?

Refund

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Whether we like it or not, it’s tax time. You might be like me – the person who has everything prepped and ready as soon as the year ends, or you’re scrambling on April 14th to cram them in before midnight. More than likely, you fall somewhere in between. šŸ™‚ Or you might be self-employed and dealing with taxes in smaller increments throughout the year! Regardless, it’s prime money time for Uncle Sam.

Many PF bloggers and financial gurus go on and on about how you should not be getting a refund. Getting a refund is often touted as “giving Uncle Sam an interest free loan” for the year. I blatantly disagree with that statement. I like to say that the IRS is holding onto my money so I don’t do anything stupid with it. I’m one of those people who claims ZERO across all mediums, so I usually get some small refund. I would get more if I only worked one job, but since I’m a tipped employee in one of my side gigs, some of that cash goes back to the IRS.

Since I knew I was getting a refund, I immediately started making plans of what I would do with the money once I got it. Typically, the plan is the same for me from year to year: pay down a small debt and save for my “no credit card” vacation. For 2016, that was exactly the plan. I held a very official šŸ˜‰ Twitter poll to see what some of my fellow bloggers might be doing with their refunds and I got a few great answers! Some ideas that I received on how people will be spending their tax refunds included:

  • Going directly into savings.
    • This is honestly what I probably should do, as my emergency savings could always be beefed up.
  • Paying off debt only.
    • I could also do this and eliminate my final small bills.
  • Saving for a house/remodeling fund.
    • I have no major house expenses (other than rent), so this wouldn’t be my best choice.
  • Vacation savings.
    • This person shares my ideas! šŸ™‚
  • Donating a portion of the refund.
    • This idea never crossed my mind. I totally would have never thought about this at all. It would be a nice way to get my yearly giving started.

Honestly, I think the options of what to do with your refund (if you get one) are limitless. Use it as a lump sum or sprinkle out in smaller amounts for whatever you choose to do. Save it, spend it, gift it, use it for whatever makes YOU happy. Don’t worry about whatever everyone else says to do with it, but use it on something that you value.

In the comments, tell me what you’re going to do with your refund – if you’re getting one!

Still need to do your taxes? I highly recommendĀ TaxSlayer.com!Ā I really enjoy their program. It’s very easy to use, retains information from year to year, and they offer complementary services aside from taxes only.

Be back later this week with more goodies!

 

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