I was greeted last night to notice that my 2008 tax refund has been deposited in the bank. There was 2 weeks inbetween my submission/approval of my tax forms and the direct deposit refund check. Of course, all of my refund is actually a zero percent loan from the government. I was able to take advantage of the first time homebuyer’s “credit” for 2008. This $7500 is actually a no interest loan from Uncle Sam, which I’ll have to start paying back in 2 years. The loan is for 15 years, so that results in a yearly tax increase/payback amount of $500. If I sell my home, I’ll be responsible for paying the remaining balance that tax year. For those buying a new house this year, you are eligible for a $8000 credit with no payback.

So what am I going to do with all that loot? Buy lottery tickets of course! Isn’t that the soundest investment one can make today?

Actually, this money has already been earmarked. Unfortunately a good portion of the “credit” went to pay for my taxes due. I owed money this year, so this loan is actually covering some of that cost. Being somebody who doesn’t like the idea of borrowing money to pay debts, this was an interesting dilemma for me. Ultimately I chose to take the free loan. Who knows, maybe our elected officials will get worried come election time and they’ll forgive this home buyer’s credit all together. Stranger things have happened.

The rest of the money is going to fuel this struggling economy. The roof on our house needs to be replaced and so this summer I’m going to get someone to fix it. Hopefully I’ll save some money and demo the current roof myself. Roof replacements are pretty expensive and I knew when the house was purchased that it would be the second major repair (first was the electric panel). I’ve been saving additional funds monthly to help make up the difference. I’m also looking into what type of roof to install. With the current green movement and my location, it makes sense to put some sort of eco-friendly roof on the house.

Any big purchases or plans with your tax refund? Anyone still owe and waiting till the last moment to pay your share?