What happens when you owe the Government money at tax time? Depending on how much it is, hopefully you have it in savings.
Unfortunately, my wife and I are in that situation. We owe a little less than $1,000 to Uncle Sam. Good news, kind of, is we will probably get a state refund to help subsidize the Federal payment. Bad news is we have to give Uncle Sam some money. Great news is, we have that money in savings and will be able to pay it on time. I hate to use some of my Emergency money to pay taxes, but it is a BLESSING we have it!
What this means for Mrs. Financial Health moment and I is we have to start saving for our Emergency fund again. It will not completely wipe us out, but we will probably go under our $1,000 goal. We have our finances in order for the most part. We will probably have to pull in the reigns a little bit on the spending train. It will just require us to pull the "tent stakes" in. We will be cutting back on our entertainment fund, restaurant fund, and probably some other envelopes just to be safe we can get back to the $1,000 quickly.
So, if you have a tax story you want to share, please leave a comment. If you are going to get a refund and it will give you your EM Fund or will pay off some debt also leave me a comment!
Feeling better than I deserve,
Your Financial Health Moment!
I work for H&R Block as a receptionist during tax season, this is my 4th year doing it. The benefit of working there is they do my tax return for free :) Aron has been deployed this entire calendar year and while on deployment, his income is entirely tax free! Which has been a blessing throughout the year, to earn a little extra in his paychecks, but that also means our refund will be less. However, I still worked last tax season, so we have some refund from that (but I only worked Jan & Feb cause I had Chloe in Mar, so it's less than usual)... plus we have 2 child tax credits, so we get a refund from that too!!!
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