As a self-employed freelance writer, I don’t get a big tax return—it’s usually $200 or $300 max. But my partner who works in sales typically gets a couple thousand dollars at tax time. This year we did our taxes early and have already received the first half of our tax return. We’ve gotten $1,300 and are waiting for another $1,300 to hit our bank account. Here’s what we plan to do with the money.
Replace Our Basement Flooring
A couple months ago, we had our hot water heater replaced. Sadly, something went wrong during installation and our basement got flooded with water. The carpet in our basement was completely ruined, so we had to rip it out.
We’ve had to make lots of home repairs this year, so we didn’t have enough money in our house-related sinking fund to replace the floors right away. Now that our tax return is here, we’re planning to use part of it to get new foam flooring tiles.
After comparing all of our options, we decided interlocking foam tiles were the best choice because they’re cheap and durable. If we have another accidental flood in the basement, they won’t get ruined, unlike laminate or carpet. Plus, it will only cost $1,000 to cover the whole basement floor, which is affordable as far as flooring goes.
So what are we going to do with the remaining $1,600?
Honeymoon Spending Money
My fiancé and I planned a low-key wedding that was supposed to happen this past fall. But sadly, the pandemic got in the way. With COVID-19 still spreading, our families didn’t feel comfortable traveling from Massachusetts to Michigan where we live.
The pandemic is far from over even now, so we decided not to plan another in-person wedding. Instead, we’re eloping at the end of next month and inviting our families to join in on the festivities over video chat.
Since our Zoom wedding is going to cost us next to nothing, we’re planning to take a trip for our honeymoon. My parents generously gave us some of their Marriott points, so our hotel will be free. We’re visiting Minneapolis, so we’ll be able to drive rather than pay for airfare. Our tax return is also coming at the perfect time and will give us extra pocket money to treat ourselves on the trip.
However, we’re not big spenders, so I anticipate we’ll have about $1,000 left over. The remainder of our tax return will get deposited into one of our sinking funds after the trip.
Garden season is coming up, and this year we’re planning to invest in an irrigation system to make growing veggies easier. So we’ll probably put the rest of our tax return into our garden sinking fund and use it for any supplies we need this season.
Wrapping Up
How are you planning to spend your tax return this year? Are you saving it for a rainy day, using it to fund a home repair, or treating yourself to a vacation? Let me know what you’re doing with your refund in the comments section below!
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.
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