Tax Time

It’s Tax Time America! No, this isn’t an add for a tax return service. Actually it’s a few helpful hints on how to best file your taxes and use your tax return.

I will admit that my dad still does my taxes for me. I am completely satisfied with him buying the software, badgering me for my paperwork, and letting me know the end result.

I had heard that you could write off the interest you’ve paid toward student loans in the past year. It was about less than $2,000 in my name, but that amount reduced my total income. I wasn’t able to claim more since the Parent Plus loans I’m paying on are in my dad’s name.

Also, when filing your taxes, always take the free option. It may cost a chunk of your payout to file and receive your check quickly. Really this should be extra in your pocket rather than something on which you are depending.

I’m sure other financial blogs will tell you right around now that having a large tax deduction is actually a bad thing since you didn’t get to use that money all year long. Maybe I’ll consider changing from a 0 to a 1, but that won’t really change much for me right now.

Instead, I will gladly take back my almost $1,000 dollars and spend it wisely now. I plan to put about half of it towards rebuilding my auto repair savings account. That way I can focus more on my student loans. The rest will be towards my loan pay off. I’m trying to decide if I’ll make an extra payment towards my lowest loan with the highest interest, or if I should add it to my savings account towards that goal. Either way, I won’t be spending my extra money on a new Kate Spade watch like I really want to.

Resist the urge everyone! How will you wisely allocate your tax return funds?