I finally finished our taxes this weekend, using Turbo Tax online as I have for the last few years. I saved $20 or so by clicking through our account with Vanguard first.
This year, I added tax info as I received it and did a little at a time, rather than a marathon tax filing session.
We are in the small group of Americans who can’t actually file their return just yet — our Mortgage Credit Certificate was one of the forms that was delayed this year (worth the wait though, because that credit alone was worth $1,032 or so this year to us!).
So, I’m hoping we’ll see our refund sometime in March? No idea. Turbo Tax has our forms in the queue and they’ll be submitted once the IRS will allow it.
The refund was a bit larger than I had hoped for. We try to keep it to around $1,000 or less, because we’d rather have the money rolling in steadily with each paycheck than have a big lump.
For one thing, my blog income was less than last year, and I had too much tax withheld because I didn’t want to have to owe a bunch and pay penalties on that. Bummer about my blog income dying, but I am not interested in running sponsored posts and I doubt you’d want to read them here.
Since the government is getting an interest-free loan on my money and I don’t know when we’ll see it for sure, we increased our exemptions on the W4 form.
We’re having less tax taken out of Shane’s paychecks now, and I’ll run the W4 calculator again in a few months to make sure we’re still on track for a $1k refund give or take.
I’d like to use the refund to fill up Shane’s Health Savings Account. We haven’t opened one yet, since I’m still looking at our options. Most of the ones I’ve seen so far have a minimum that your account balance needs to reach, or they’ll assess a monthly fee. No thanks. The money can stay in savings until we can avoid those fees.
The HSA will reduce our income tax liability for the year. It can also grow if we can invest it in decent options (I’m hoping to find something beyond a CD or money market. Barf!). The money will be there for large medical expenses (right now, Shane and the kids have a deductible of $5k — eep!). And if we don’t use the money, it can roll over year after year. Some people contribute every year, but pay for medical expenses out of other funds. They intend to use the HSA as a medical account during retirement (perhaps early retirement?) and I think that’s a cool idea.
How about you? Taxes filed? If you’re getting a refund, what are your plans for it? Do you have an HSA?