Tag: taxes

A Cold Tax Season is Here

February 06, 2018

Hey Everyone,

Looks like some groundhog saw his shadow so we are getting another 6 weeks of winter. Living in Reno, NV we either get Winter or Summer, there is no in between, not really.  So I guess we are just going to be colder a little longer than usual. Others out there might have a different take on that with a foot (or two….eeek!!) of snow pelting down on them.

Also, while it is cold it is also tax season. I know many people who absolutely dread doing their taxes and wait until the very last day, Tuesday, April 17. In exactly 70 days.  Please, do not procrastinate. I beg you. If you owe something, better to get it over with and pay than to accrue interest. The government doesn’t mess around with people owing money.

Yesterday, instead of going for my scheduled 3 miles run Husband and I buckled down and submitted our 2017 taxes. It took us about a total of an hour doing it together. Over the last 5 tax seasons, we’ve gotten into a pretty good rhythm of how we do everything. During the year itself if there are any medical bills, major expenses (car for the 2017 year for us), etc. we immediately put it in the tax years file in our cabinet. Then when we’ve received our very last document needed to file (for 2016 and 2017 there were more documents needed than usual due to job changes, vehicle changes, and benefits added) we knock it out of the park in less than an hour.

Everyone has different experiences with filing. The first year Husband and I were together I was very impatient, nervous, sleep deprived (having a newborn, and also working swing shift with a full school schedule) so I just started working on it without him. Ended up royally messing everything up so Husband came to my rescue like the knight he is, and fixed everything. Since then I’ll read him the numbers while he puts them into the computer. I learned my lesson.

Now, some people may think of the money being returned by the IRS as a bonus and a reason to go on a spending spree. Probably not a good idea. The idea of having the freedom to buy what you wish not having to dream about it is such a temptation. I understand.

Instead of doing that once Husband and I find out how much of a return we are getting we break it down into a budget. Making sure that we take into account what our living budget is going to look like during the next year. Putting things in the order of importance for our survival. It wouldn’t be very good if we used our entire return to book an all expense paid vacation to Walt Disney World so than when we return we are in the same situation we were when we left.

The management of the money is going to be broken down a little differently this year than last year because of Husband losing his GI Bill in a couple of months so we need to plan for that, while we wouldn’t normally because he would be working a steady job.

First: Replenish our emergency fund

Second: Put aside 2-3 months of rent

Third: Pay off the rest of Monster’s surgery bill.

Fourth: Pay off a low balanced credit card

Fifth: $50 for Dinner

These are our priorities this year. I know that this will look different for everyone but to give you an idea. While I did say that it isn’t recommended that you go crazy and spend it all on a brand new, unnecessary television, or the latest iPhone you could. It’s your money. Be responsible.

That being said every year husband and I budget out the last $50 to go on a date. It’s something simple that works for both of us so that we can do something “fun” together.

See you on the other side

 

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