Thursday, January 13, 2011

Tax Time: Are You Happy, Sad, or Indifferent?

For some its the inevitable, for others its like a second Christmas and for others they are hoping to break even; tax time is among us and I have to say I am kinda looking forward to it.

As a person who doesn't understand a lot about tax codes or tax brackets, it refreshing to be able to go to a person nearby who does. I can ask many questions without feeling "not smart" and can get answers that I can comprehend. For me that is my husband.

Regarding my family, my husband got a new job offer in July of last year and as a result a new/increased salary; putting us in a higher tax bracket. Since we've had our only daughter as an only children for 4 years and claimed just 6 allowances, we been getting maybe $1,000 or so back. However, we have bought a house, have been paying my student loans, and even had another baby; so the tax calculator is now saying $2,100!!

I am happy because I was just hoping to break even, but a little extra doesn't hurt. Its nice not to give the government an "interest free loan" and we still get to have some money back. Plus my husband get a bonus from his job that will be paid out the end of February (which is 10% of his salary); so we'll probably get those 2 checks around the same time.

As for what we'll do with it; I like to follow the G.S.T. Method (a term I created BTW):

G is for GIVE: We GIVE to GOD first. Period. He's the reason we have it and its his money anyway. This includs tithes and an offering to someone.

S is for SAVE: We pay ourselves second. Put away some in our savings account.

T is for TREAT: I want my husband to be able to enjoy the fruits of his labor. If he wants something he should be able to have it; besides he never buys himself anything. He is a selfless person.

This tax season are you happy/sad/indifferent?

If getting a refund, what will you do with it?


Jenny said...

That is great about the taxes and especially about the bonus!

I'm a fan of flat tax and think it would make much more sense and save so much time and money for the government and everyone else.

We haven't done our taxes yet, but we usually do get something back. My husband has his own company, so it really varies. Luckily, we have an accountant to figure it all out for us! LOL!

Jacqueline said...

We probably save. Pay off and close my Credit Cards. and finally get a few pairs of shoes and clothes I feel pretty in. :) Thats the goal. Probably end up paying off debts and saving and I will have to wait a little longer for a new outfit. :)

lynn said...

Tax time has been good to us the last couple years because we are low income. We will be giving some of it and putting the rest in our Roth IRA and then pretending we never saw it.

Treats are nice too, we are trying to save up to go on a nice second honeymoon in a couple years, but tax refunds we just started getting the last few years and have decided for us it's best for us to just put that money somewhere smart and pretend we didn't get it!

lynn said...

Jenny, I'm with you on some sort of flat tax. I think we could make taxes way less complicated and come up with a more fair system than what America has right now. Property tax, sales tax, and federal and state taxes with all kinds of loop holes, deductions, and credits. It shouldn't be this complicated!