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Tax Refund = Savings

February 25th, 2011 at 12:20 pm

Our federal tax refund, $1,990, was deposited into our account today. We do owe our state $124 by April 30th (yes we get a delay here). We will save the $124 and pay the state just before the due date. The remainder of the refund, $1,866, will be saved for the truck purchase.

New Truck Savings Balance: $4,556

We are getting closer each time money comes in!

If you are getting a tax refund, what are you doing with yours?

6 Responses to “Tax Refund = Savings”

  1. Jerry Says:

    We are still waiting to see what our return will lead to, but it will be interesting to find out. That is great that you have a goal to put your return into a truck... we are using ours for paying off some debt and also some school expenses. If there is anything left we will probably save it and maybe take a small trip as a family, but there's no insurance that will happen. Enjoy the progress toward your goals!
    Jerry

  2. PNW Mom Says:

    We are getting aprox $2000 back from Federal thanks to dd1 being in college and the American Opportunity Credit.....normally it would go to savings but it is going to a new savings account for our 25th anniversary cruise next year.

  3. ceejay74 Says:

    We're going to owe, I just don't know how much yet. AS owes over $1600 on federal, haven't done her state yet, and NT and I may about break even--unless our tax preparer reckons we need to report our UK income. Then we may owe and also need to revise 2 years of returns (and probably pay penalties on those).

    Sigh...I actually calcuated recently that we would have our lawyer money fully funded by the end of March, but our tax bills will probably take us almost back to the beginning again! At least we're lucky we have that money set aside, and we don't need it for the lawyer for a while, so I'm not devastated, just a little disappointed.

    One of the mistakes I made? Not factoring in our mortgage rate decrease, which is making my and NT's itemized deduction much less!

  4. MonkeyMama Says:

    $2k to IRA.

    (Funny - all the $2k refunds).

    We usually play the $0 refund game, but I am not going to change all my withholdings for all these one-time medical deductions. (I barely withhold anything, as is). Anyway, though it would probably make the most sense to replenish the medical account, I have that covered and got a decent IRA deduction this year, so chose the IRA this time.

  5. fruitbowlk Says:

    I am adding mine to my Emergency fund.

  6. Looking Forward Says:

    A bit to mom and MIL for $$ given to us in the past when we were just starting out. A bit to EF and the rest to debt.

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