Tax Season, Shmax Season

This year I was so excited to file my taxes as I have been paying into RRSPs at Job#1 for the first year and I was also able to claim about $1000 in tuition from the courses that my company pays for. Much to my surprise…the government has decided I OWE THEM $500 this year because Job#2 was not taking a high enough percentage of taxes out of my pay in proportion to my total income. Needless to say I am having that fixed shortly and am filling out the paperwork to get them to take more out.

Thankfully I am still able to file for my Tuition Credit and am getting $2000 back from that so in total I’m still getting back $1500. I’m torn with what to do with my return. I know I will now not be able to replenish my savings account to what it was as I need summer tires which will run me around $600. Should I split the remainder between debt and savings? Or should I put the remainder back in my savings account and just keep plugging away at my debt? I still have a few more weeks to figure it out but I’d like to be prepared by the time the money hits my account! 

 

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6 thoughts on “Tax Season, Shmax Season

  1. I am getting a very small refund from our Fed govt, put I have to pay into the State. After I pay into the state and pay the accountant, I am putting the rest into my emergency fund and a small amount into another savings account for once/year expenses (pet vaccines, tags and taxes on my car, etc.). I am putting the rest, about $75, toward debt. I think you can split it how you see fit. It is called “personal finance” after all and as long as you are still decreasing your overall debt each month then I think it’s fine 🙂

  2. $1000 on debt and $500 in savings for emergencies would be my recommendation. How does that sound?

    Thanks for stopping by my blog. I like the look of yours. I hope you don’t mind but I’m going to implement the progress bars like you have at the right. I saw the same thing on ShoeaHolic no more and was asking her how she did it. Very nice visual and reminder of progress and goals!

  3. I think that a good combination would be to put half into your savings account and then half into paying for your debt. Then you will feel good for taking a nice big lump sum off your debt, but still be replenishing your savings account a bit.

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