More than half of all Americans will get a tax refund this year. According to the IRS, the average refund last year was around $3000. That money can make a significant difference in your financial picture. Unfortunately, we have found, that a new influx of cash can come between you and your spouse. But there is a way to agree on how to use your tax refund.
As a couple, once you know what your refund will be, think twice about what you will do with the money and how it can affect your money relationship.
Here are three tips to help get you and your spouse on the same tax refund page:
1. Do the sensible thing.
The Saver and the Security Seeker in the relationship will be all about paying off the debt, saving the money for retirement, and adding to the emergency fund. The Spenders, Flyers, and Risk-Takers might not be quite as excited about paying a debt, but will think it is a great time to do the home improvements they have been talking about or paying for the vacation that is long past due. It is important that you compromise and make sure each money personality is heard and respected!!!
2. Invest in your relationship.
With these surprise dollars, it is a great time to invest in yourself and your relationships. Join a gym and pay for a year in advance to get the weight loss that you have been talking about. Take a vacation getaway for two or do a marriage workshop! Buy a tank of gas for a friend. Take some time at your next Money Huddle and dream about something fun to do for your family, yourself, or each other.
3. Recalibrate your withholdings.
A tax refund is an interest-free loan to the government. Most couples can use some extra money during the month. Take a look at your overall picture and see if there is a way to recalibrate your holdings for next year. It is always a good idea to contact your CPA or Tax Preparer before you pull the trigger with your payroll department.
Taylor & Megan Kovar
The Money Couple