Personal Finance

Birthdays and Taxes

Surprisingly delicious vegan, soy free, gluten free cupcakes made for my son’s birthday party!

Who has received their tax refund already? We just got our state tax refund back. I know that if you get a refund, you are doing something wrong. However, I can’t figure out how to get it so we are not paying federal taxes. No matter what adjustments we make, we always seem to get a bill from the Feds! So, to make sure we don’t put ourselves in a tough situation, we overpay our state taxes to give us some breathing room.

This year, we got about $1,700 back from state taxes. How did we spend it? $700 went to pay for Federal taxes. (Boo!) We then put $500 into savings for whatever we decide we are doing. (Yay!) The last $500 was budgeted for my son’s birthday party. We only do parties on even years until the age of 10. After that, we may do ages 13 and 16 if the kids really want one. I want to say we were way under budget, but I have been too lazy to add everything up especially since our credit card balance is at zero and we still have money to eat and live off of for the rest of the month.

How are taxes looking for you?

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11 thoughts on “Birthdays and Taxes

  1. I am interested in your choices about birthday parties only on even years! Did you decide that when your kids were really young or did you start to implement that later on? (I think I’m stuck – my kid has been having birthday parties every year, and she’s turning 7 this spring.) We have historically done relatively low-key things (going to the park and inviting friends along and having cake) but one year we rented out a place, which was super pricey, but my daughter felt like a queen! This year, I’m not sure what we will do. I wish we had a good-sized (and safe) yard to just have a bunch of kids over to play, but our place just isn’t set up very well for that kind of thing. What did you do for your son’s party?

    Liked by 1 person

    1. We started when my daughter was 4. She had parties at 1, 3 and 4. Plus, we were at a preschool with several affluent parent who went all out every year. (One family rented out an entire Children’s museum. It was the best party I have ever been to!) We soon realized that this could get way out of hand. So to skip her 5th year, we told her even years only and it worked. I only wish we had come up with something else because we end up doing both kids birthdays in the same year.

      For my son, we went to a local kids gymnastics center. We invited his whole class, but only figured 1/2 of them would show. Plus we had a coupon for get 3 kids free. I feel like the food was the larger expense with both regular and gluten free everything. I have no idea what I’ll do for my daughters 10th birthday this year. It seems like the older they get, the more expensive it is!

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  2. I’ve been planning to write a post about spending your income tax wisely. I’ve put it off until I decide to actually file. I never expect a federal refund, so I want to see if I’ll get lucky this year and have a personal story to tell. That’s a nice state refund you received. I’ll be happy if I get a few hundred dollars back.

    Liked by 1 person

  3. I did get my refund — I filed as soon as my W-2 came through from my employer. It was about $1100, and it ALL went toward paying off credit card debt. I got rid of my last higher-interest credit card so now I’m just down to the last one! Yay! Then I contacted human resources and adjusted my withholding allowances from 2 to 3, so hopefully I won’t get a refund next year. Better to have the money now & put it to good use. But I’ll miss that holiday feeling of “woo-hoo, free money!”

    Liked by 1 person

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