She Strengthens

My Tax Refund Breakdown: Worth It or Not?

As a recent college grad, I’ve come to cherish tax return season. There’s something thrilling about receiving a chunk of change directly into my bank account, giving me the freedom to spend it as I please. This year, I knew I’d need to allocate a significant portion of my refund towards paying off my credit card debt, which had spiraled out of control during my summer of unemployment. But I also hoped to stash some away in savings.

The Refund Details

My total tax refund came out to $3,289, broken down into:

• Federal Return: $2,713
• State Return: $576

Where Did It All Go?

Here’s a breakdown of how I spent my refund, and whether each expense was worth it:

1. Turbotax Fees: $146

I usually opt for Turbotax deluxe, but this year I needed the premiere software to file my Health Savings Account. I also paid to file two sets of state returns, since I live in Connecticut but work in New York. While it seemed convenient at the time, I’m not convinced it was worth the cost. Next year, I’ll likely explore alternative e-file methods.

2. Paying Off Credit Card Debt: $947

I’ve been working hard to pay off my credit card balance in large chunks. It felt amazing to finally zero out my balance, even if it’s since crept back up a bit. This expense was definitely worth it, and I’m determined to avoid falling into credit card debt again.

3. Savings Boost: $800

I aimed to save more, but life got in the way. My emergency fund now stands at $1,000, which gives me peace of mind. This expense was definitely worth it.

4. Broadway Tickets and More: $370

I owed a friend $180 for Jessie Mueller’s last performance of Waitress. Then Sara Bareilles announced her opening night, and we snagged tickets to that show too. My debt to my friend doubled, but the experience was probably/mostly worth it.

5. Weight Watchers Subscription: $100

After gaining 30 pounds over the past three and a half years, I knew I needed a kickstart to get back on track. Weight Watchers is running a promotion, waiving the initial fee and offering a $100 reward if I lose 10 pounds in three months. Fingers crossed it’ll pay for itself!

6. Treat Yo’ Self Spree: ~$240

I’ve been strict with my spending lately, but I decided to indulge in a few treats. I bought new ankle boots and cute yoga clothes, and most of these items were discounted. It was worth it to give myself a break and enjoy some retail therapy.

The Verdict

I spent a total of $2,593, leaving me with $686 as a checking account buffer. While I didn’t save as much as I’d hoped, I learned a valuable lesson: tracking my expenses helps me prioritize what’s truly worth it. Next time, I’ll think twice about using Turbotax, and I might adopt this expense-tracking method to stay on top of my spending.