Income Tax Return A.K.A. a pot of GOLD.

I’m quite happy, since last year I had been hoping to make less than average yearly income and buy more, tones actually! Whoa, hold your horses not that much, I mean buying things that are deductible come tax time, like I made a 400$ donation to the SPCA, about 5000$ for braces and had dental surgery for another 800 $, uh paid school myself, live on my own (Boyfriend sleeps over a lot but for solidarity reasons he doesn’t live with me ALL of the time) and with well thought out plan of spend smartly and remember what is deductible  I manage to get 3000 (Give or take, I’m not going to tell the exact amount for personal reasons, a slow integration in to PF is much prefer.) I also paid about 400 to my school loan.  But overall I’m Getting a pretty huge amount back! I just have no IDEA what to do with it.

So this year I kept a folder marked TAX’s and went in super early to get them done, made under 14 000$ ( plus I had a School loan of 4000$) So 18 000$ all in all  was in my possession (And gone so quickly 😦 ) Now here comes my problem that I want all of you PF bloggers to pitch in your advice, What should I do with it ? I have consumer debt and a very small school loan, nothing that I have to pay back yet and I have a huge car insurance bill of 500 $ and braces of about 1800$ left to pay. Besides randoms that is it. 

Now should I divide it up and pay of some parts of my debt or should I invest it, as is I’m surviving all happy with the little debt I have. I make my payments on time and everything is okay in that spectrum. what I was thinking about is investing it because this time next year it might become useful in buying a car or my house from my dad for some miracle of a price. 

So should I:

A) Save half and use other half to pay of certain debts

B) use all to pay back all debts now. 

c) Invest or save all of it. 

Also investing wise/ saving wise what do you suggest ? I’m looking for something that is about a years time. 

Let me know what you all think !

Peace

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5 thoughts on “Income Tax Return A.K.A. a pot of GOLD.

  1. Just came across your blog while doing some research… And that’s amazing! I’m afraid to do my taxes this year (it’s so late now, I’d best suck it up and get on it) but I wish I could get a return like that! Last year, I got nothing back because my scholarships and grants were somehow taxed, and I ended up with no return at all and a big bill from H&R Block.

    Anyways, I’ve always read that you pay off your debts first. If I had an extra $3K laying around, I’d get rid of the things that are costing me money each month. Credit card bills, student loan payments… Those things are constantly taking money out of your accounts right now. Keeping more of your income now is always better than investing for gains in the future. (I think!)

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