Thank goodness for tax deductions
Well tax credits to be more precise. They’re causing me to get a nice hefty refund this year. I have my withholding set to 2 so I don’t get a lot held out of my paycheck but I also don’t get a large refund during tax time. My refund usually comes in anywhere from $300-600 depending on my deductions for the year.
I don’t want to hold any more than I do out because I don’t want to owe any money at all. I usually owe the state around $50 because of interest and dividends. This year I won some money in a lottery but I was able to deduct losses so my state liability came out to around $15. Not bad considering I generally pay 3 times that amount.
I’m trying not to spend the money before I actually get my hands on it but it’s really hard not to imagine what to do with the money. I’m going to throw a nice chunk into my savings then the rest is fair game. I’ll probably renew my passport, buy a pair of sneakers, a pair of dress shoes and maybe get a new camcorder with what’s left. I have a list of things that I want to do and I’m trying to pare it down now. I don’t want to over-budget and not be able to get everything.
I think I’m going to stop planning anything else until I get the money in my hands.