What We Did With Our Tax Returns

Let me begin by saying how important it is to have a good accountant who knows her shit. It truly makes a different.  I thought, since I only have a regular 9-5:45 job, my taxes should be cookie cutter simple. Twice in a roll, my return was a measly $1000 give or take a few dollars. My husband on the other hand was getting 2x as much as me. I thought, it wouldn't hurt to give his accountant a try. Last year, we filed jointly for the first time and our return blew me away. I mean, there are several factors to be considered and I can't really compare apples to apples when we file jointly versus married but filing separately. But I do believe his accountant is more knowledgeable than mine and thus able to get us a bigger return. Mine  was someone younger than me just starting out. **No offense to all the accountant just starting out, we need you. 

This year, our return was a little higher than last year, mostly due to the birth of our daughter, I made less because I took a 2 month maternity leave and I'd increased my 401k contributions. 

Last year, with our returns, we're able to pay off a small student loan my husband had. We sold my car and used proceeds with the left over tax return to buy a newer car. It feel so good to own a car outright. 

This year, we used the money and pay off our credit cards immediately. We had higher than normal credit card balances this month because we just celebrated my daughter's first birthday. We moved and needed some furniture for our new place. And, my husband took his car in for a 105k mile tune up... that was over $1000. If you take care of your car, your car will take care of you, I guess.

We still have some money left over for my husband to pay off his car, this move would make us debt free, with the exception of my mortgages. But he rather that we use this money to add to our savings. At first, I wanted his car loan paid off, this would save us $200 per month. But then, if we don't redirect that $200 else where immediately, we're bound to find ways to spend it. We thought it would be easier to keep our finances the same and keep the money to boost our savings. 

We didn't do anything "exciting" but paying off our debt is pretty exhilarating. Having a little bit of cushion in the bank really helps us sleep better at night.