Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Seminary Money

Bradley wants to use his tax refund money for seminary, but there may be another problem at work here.

QUESTION: Bradley works for the state, but wants to go into ministry. He and his wife aren’t going into debt anymore, including not getting student loans for seminary. They got back $4,500 on their tax returns last year. If they can’t find any other way, should he use that money for seminary? Dave thinks it’s all right, but tells Bradley about another problem.

ANSWER: You need to stop having your income tax withheld. That $4,500 is just a result of you overpaying your taxes. You need to change your take-home pay by $150 a month. Don’t park money with the IRS every year. I don’t have any problem with using that money to go to school with, as long as you are not going further into debt to do it.