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Skyline 101 - Tax Refunds

3.4.2024

Members:

Some call this their favorite time of year: Tax Refund Season. Some are thinking, there is a season for this? We understand that moment when you FINALLY feel some financial relief and make a lump sum payment on your credit card, or get caught up on a utility bill. We get it, it's tough to keep up with the ever increasing living costs. 

This month we'll be focused on the best ways to utilize your refunds to that way it leaves you feeling accomplished.  

Full disclosure - this is NOT financial advice nor investment advice. This is also NOT tax advice. If you need these type of services, contact a financial advisor or a certerified public accountant (CPA).  This article is written to have you keep an open mind so you don't over spend your tax refund. 

Can I deposit my tax refund to my Skyline account?

  • Yes you can!
  • You can deposit your refund to your checking or savings account. If you need your account and routing number, please do not hesitate to call us at 203-755-2030. 

Is it free to deposit my tax refund to my Skyline account?

  • Yes! 
  • There is NO CHARGE for tax refund deposits to your account. 

How soon can I access the cash from my tax refund deposit?

  • Once you see the funds in your account, they're yours to use any time. 

Should I treat myself to a nice dinner?

  • You can, but nice dinners can cost almost $200 per person.
  • Think about what you can use the $200 on instead of a single dinner.

Should I just put everything I got onto my biggest bill?

  • While this may seem like a good idea, it's not going to necessarily help your cash flow. 
    • Let's say you got back $2,000 in a tax refund. You have three bills that are behind / past due: Lights for $9,200, Credit Card is $500, and Insurance is $350. If you took the full $2,000 and put it all on your light bill, then your credit card and insurance are still behind. 
    • It would make more sense to pay off the credit card and the insurance because out of the $2,000 you'll have $1,150 left over. Put those funds into your savings account and use them for later when your paycheck might not get you through the week. 

Should I just buy another car with my money? 

  • Cars payments can be tough in today's day. The average car payment is over $700 per month these days, and some exceed $1,000 per month. 
  • If your tax return is enough to buy a car outright, perhaps looking at what it would cost to repair your existing car might make more sense. If a new car is going to use your entire refund versus just fixing your own car and using half of the refund, that still leaves you with half of a refund to put it toward something else. 

We get it, when you see the money hit your account, it's tempting to spend it immediately. Make a plan for yourself, put together a budget just for the refund so that way you don't use it up too quickly or spend it on things that are wants. 

Need help making a budget?

  • A member advocate at the credit union will help you, simply email us or call us to make an appointment.
  • We do in person and virtual appointments during business hours. 

Thank you for your membership,

James A. Higgins, MBA, CUDE

President and CEO

Skyline Financial Federal Credit Union