Few people look forward to tax time. After following the formulas and figuring out the bottom line, or paying someone to do the figuring for them, many people have the unhappy chore of writing the government a check for the taxes they owe. However, some taxpayers in Columbia, South Carolina are fortunate enough to expect a refund from the IRS. A recent report by JPMorgan Chase Institute reveals what many people do with that tax refund.
Commercials and billboards invite people to spend their tax refunds taking lavish vacations or making home improvements. For some people, however, the money went to cover medical bills. In fact, about 16 percent of people in the study paid a large medical bill within three months of receiving their refund.
For some, this meant paying off a bill from a past medical incident. Others, however, used the money to have a medical procedure they had been putting off because they didn’t have the money. Even with a tax refund, many families still struggle with medical debt. An unexpected expense may hit a budget hard enough to make it difficult for a family to recover. Often this expense is medical, but it may also be an auto repair, tax bill or combination of the three.
Facing overwhelming debt can create tension within a family. Sometimes, no matter how many hours a person works, there never seems to be enough money to cover the debt. In these cases, families in Columbia, South Carolina contact a bankruptcy attorney to discuss their options. When medical debt is relieved through bankruptcy, many are given a fresh financial start.
Source: CNBC, “That tax refund you were counting on often goes to medical bills”, Kelli B. Grant, April 7, 2017