The Rise and Fall of the Tax Kicker Refund Check
In December, our family was blessed with a wonderful surprise…The Oregon Tax Kicker check. For those of you who don’t live in Oregon, there’s a law that says if the money the state takes in from taxes is a certain percentage higher than the state budget, the money gets kicked back to the taxpayers. Personally, I think they should just cut our taxes, but that’s a whole different subject.
Anyway, back to the story. In December our tax kicker check arrived, and it was much larger than we anticipated. $641 to be almost exact! My first thought was “pay down the credit card!” Friends told me to make sure we saved a little for something fun. In all my excitement, I forgot to ask my husband what he thought.
It turns out my husband had big plans for that check, too. Our Honda CR-V was in need of a new timing belt. I thought maybe we could put it off, but apparently the timing belt is one of those car parts that destroys the whole car if you let it go too long. So I agreed that we should get it replaced. We had the timing belt replaced in another car several years ago, and I recalled it being about $300, so I figured we’d have half the check left to pay down debt.
Unfortunately, I was wrong. Apparently, though the timing belt itself is not expensive, you have to take apart the whole engine on a CR-V to get the timing belt in. Total cost of the job? $608. So much for that Citibank bill going away any sooner.
In the end, it’s OK. The work needed to be done on the car, and we didn’t have to take the money out of our emergency fund. And I recognize that we’ve come a long way in the last several years.
I’m proud that my first thought was to pay down debt, and that my husband’s first thought was to pay for a necessary car repair. Just a couple of years ago we would have been thinking “Let’s go to Disneyland! $641 is a good start, and we can charge the rest!”
Yes, we’ve grown up a lot. And I’m glad.
If you like this article, please sign up for free weekly email updates.
Author
By Lynnae McCoy, on Jan 15, 2008
I'm Lynnae, wife of one and stay-at-home mom of two. I'm committed to getting out of debt by being frugal with my choices in life.
Freebies
- Credit Sesame: Get free credit score
- Personal Capital: Free money management tool
- Ebates: Get $10 to sign up, plus earn cash back on purchases
- 360 Checking: Open a checking account and get $50
Popular Articles
- How to Save Money and Cut Spending: 93 Ideas
- Homemade Cleaning Products: Cleaners That Won't Break The Bank!
- 168 Money Saving Tips to Stretch Your Dollar
- How to Make a Budget That Works
- What if I Can’t Afford to Pay My Mortgage Payment?
- 52 Ways to Save Money in College
- My Experience Buying a Used Car with Cash
- 7 Easy Part Time Jobs
- My Husband Lost His Job: How to Survive a Job Loss
- Why the Minimalist Lifestyle Appeals to Me
{10 Comments}
Leave a Reply
Disclaimer and Legal Mumbo Jumbo
I'm just an average mom, trying to live a frugal life and get out of debt. I write about things that have (and haven't) worked to improve my family's financial situation. What works for me may or may not work for you, and you should always consult a financial advisor before making important financial decisions.
In accordance with FTC guidelines, I state that I have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.
Any references to third party products, rates, or websites are subject to change without notice. I do my best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.
For additional information, please review our legal disclaimers and privacy policy.
I’m glad the money went to good use. Next time Citibank will be next. :D I used to have a credit card with them so I’m a little biased against them.
One year I got a bonus of $360 – I had all kinds of pland. The next week, my brakes went out and cost me $343 to repair. Tough deal, but where would we have been if I had never gotten the bonus?
God promises to meet our needs. . . but I sometimes I wish he had promised me a Chevy Silverado. . .
WOOT! I think Disneyland is a better option ;) JUST KIDDING! That’s awesome that you were able to get the vehicle repaired without having to break into your savings!!
Sounds like you’re a pretty responsible adult, Lynnae. :) And in this crowd that’s a good thing. ;)
Good for you, it looks like you have really changed your thinking regarding money and that can make a world of difference in your life! Congrats on all you have accomplish and may more good things come your way!
Take Care
LJ
I recently had a similar experience to you and rocketc. My husband got an approx. $300 bonus and we had just received our property tax bill. It was $300 more than the mortgage company had saved for us. Like you, I was just glad to not have to take it out of savings!
Good for you. Those are the sort of life-changing minds shift you need to be sucessful long term.
I think Disneyland is a huge ripoff. They even charge for parking! What in the world? How do they expect their customers to get there? Walk? Ride a bike?
@Paula – I love Disneyland too. I went several times as a kid (lived in CA at the time). My husband and I are planning on taking our kids someday, but we’re not going to finance the trip! I’ll email you when we get to the planning stages. :)
Disneyland is AWESOME!!! Not that I am trying to convince you to put a car payment towards Disneyland, but if you ever do decide to go, we did it (at the time a family of 5) for under $1000 (and that included a full day at the beach and eating out and the gas to get there and back). I would be happy to share how we did it. Just send me a mail message if you ever decide to go! :)