It's Christmas time in Springfield. But things aren't so merry when Homer loses his Christmas bonus from the plant and Marge spends all the family's Christmas money erasing a tattoo that Bart had done.
Wanting to give his family a good Christmas, Homer secretly takes a second job as a Santa down at the mall. However, this still isn't enough to buy even one decent present, so he takes Bart to the race track.
When the dog they bet on, Santa's Little Helper, comes in last, they think it's all over... until the owner of the dog kicks him out on the street. They keep the dog, and everyone loves Homer for it.
The episode finishes with a rendition of "Rudolph The Red-Nosed Reindeer," Simpsons style.