Tax credit or cash in hand
July 31, 2009
I’ve realized that one of the only things that has been helping us get by is our reimbursement checks from childcare. These checks also give us a false sense of security once they arrive since it’s a big influx of cash into our account. So, now I’m wondering if we should forgo the tax credit we are getting by having this money taken out of our paycheck and instead simply filter this money back into our monthly budget.
Right now, my husband and I get about $530 for child care and about $70 for healthcare taken out of our paychecks each month. We usually save up our receipts and send them off about every 3-4 months and get a big payout. I’m wondering if, given our current financial status, it makes more sense for us to keep that $600 in our paycheck and use it for monthly expenses. Right now it just seems we are not disciplined enough to use that big payout wisely.
Any advice from the blogosphere is extremely welcome!