Health & Fitness
Blog: W-2s, 1098Ts and 1040s, Oh My!
Your W-2's are arriving soon. What will you do with your tax refund this year?
Without a doubt, December is a commotion-filled and expensive month in my household.
It seems that every year I deck the halls with new decorations, get the kitties some new fangled catnip toy -- because, yes, they are asking me for more -- and buy toys for my children, who will value their all-new-and-improved-must-have-item for about five minutes. If I am lucky, 10.
Christmas is over and the kids are restless and bouncing off the walls as I try to get my holiday decorations back into their appropriate boxes. Then, before you know it, January is more than half gone and the fun little adventures I had with my kids over winter break are a distant memory.
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The dust has settled and I can breathe a small sigh of relief as my house is slowly resurrected to pre-winter break status. Until, that is, I hear the tinny muffler of my mail carrier coming around the bend. That can only mean one thing, the credit card statement is here.
As I brace for the reality slap of December's spending spree waiting in my mailbox, I find a double whammy. A credit card bill AND a W-2! Seriously? Et tu, Uncle Sam?
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As the mercury level of my newfound stress elevates, I am anxious to see what new tax laws will impact my pocketbook this year. I am already hearing the feds did not renew the "Making Work Pay" credit. Will I be eligible for any new tax credits? How will I pay off my credit cards? Will I have a refund? Or will I owe money?
As thoughts of utter desperation swirl in my head, I am thankful to have found a tax estimator tool online that helped me put my mind at ease with some of the tax law changes. What a lifesaver! Now, judging by my estimate, I realize the IRS is a little more forgiving in what they expect taxpayers to pay this year.
There are more tax credits available and there is also a punch list of the 50 most overlooked deductions that I may have missed out on in season's past. My favorite deduction is the education credit that I receive for going back to school as an adult. Another cool thing is I can write off the registration fees I pay to have my kids go to Plainfield School District 202, as long as I kept my receipts in order. Ca-ching!
As I sit here counting my newfound money, I admittedly have visions of grandeur running through my head. How about a taking the family on a fun-filled Disney Alaskan Cruise? Or maybe taking the kids snorkeling during an all-inclusive tropical vacation? Or maybe we buy a convertible to scoot around town in? Or maybe even an iPad and a new LED television? Wouldn't that be fun?
Slowly coming down from my tax refund-induced "high," I realize that I will most likely use my refund to pay down my student loans and various other household expenses. For fun, I am thinking I will take the kids to a movie that ISN'T necessarily a matinee and I just may buy the hugely over-priced popcorn combo to celebrate. After all, a little indulgence is OK, isn't it?
What will you do with your refund this year?