On March 6, 2014, CNN Money reported that the average tax refund was calculating at over $3,000. In just thirty days time, the Internal Revenue Service distributed approximately $147 billion in tax refunds for 59 million tax returns that were filed in February 2014. The IRS estimates that they have received approximately 40% of the total expected filed taxes for the 2013 calendar year. So far, the average tax refund is calculating to be $3,034. I am one of the Americans that filed early and as a result I have already received my income tax, and my own refund certainly appeared to be higher than normal, but not abundantly so. Read on for a look at what a higher tax refund meant for my family.
Why Our Refund Was Higher
My husband and I made more money in 2013 than we had in previous years and as a result we also paid more taxes. I always set aside more money than I need to out of each paycheck for my tax balance so that I can be sure to get a refund at the beginning of each year. No one wants to owe money to the IRS, myself included, and I find this to be an easier way to ensure that my family is in the clear each tax day.
Bigger Refund Doesn’t Equate Bigger Splurges
Some people spend all their refund money on frivolous expenses. This is definitely not the case for my family. While we spent some money adding to the quality of life to our home, such as new dishes since our old ones were ready to be retired, and a new vacuum cleaner. We made sure to save the rest for a rainy day. Since the refund was direct deposited to our bank account, we didn’t have to worry about taking a check to the bank.
The Bottom Line
Although my family received a higher than usual tax refund, it was for good reason. It appears many other families are also receiving higher refunds. For my family, it is important that we use our money smartly and while we did spend some of our refund, it was for a good purpose. The rest will wait for a time when we truly need it.
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