Home > Taxes


January 26th, 2022 at 07:43 pm

I submitted our taxes today. We are getting back a little over $10k which is super high but most of it is from having a kid in 2021 and qualifying for the child tax credits and 3rd stimulus. 


We are putting $3k into my Roth IRA, $3k for vacation, and I'm saving $4k so I can continue to "pay myself" a monthly salary. I don't want to use it and then have a deficit later in the year without my income. So I will continue to pull and use only $500 a month from my saved buffer towards specific savings or expenses. This is working well so far and making the transition to a one income household much easier. If husband has overtime (always does) or I bring in any extra income then I don't have to pull from the buffer. I have enough saved to keep receiving my previous salary for this entire year and therefore not put any strain on our normal budget. 


I still have the original $2k I saved for maternity leave back in September. I have pulled from it a couple times and then was able to refill it with extra income. So perhaps keeping a $6k buffer seems a bit superfluous but it makes me feel more comfortable about not having a job to rely on, and we could always pull from it in a pinch. Just increasing our emergency fund I guess.

5 Responses to “Taxes”

  1. GoodLiving Says:

    That's a great refund and I think you're doing smart things with the refund. Happy time with your baby.

  2. Househopeful Says:

    10k is a big refund! It sounds like you have a good plan!

  3. LivingAlmostLarge Says:

    $10k is a huge refund. How does your budget work and run? That would be my caveat with cash just burning up right now. I would stick everything in Roth IRA and then withdraw in an emergency. But I don't know enough about your situation to assess properly.

  4. Amber Says:

    I like how you’ve decided to allocate the funds

  5. rob62521 Says:

    A great plan...a nice padded buffer is a blessing!

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