Are you getting a tax refund this year? Tax deadline to file is April 15th. Many individuals and families have already filed and may have already received refunds. My husband and I filed our taxes at the end of February and received a refund within 10 days from both the State and Internal Revenue Service.
If you’re expecting a tax refund this year, it is good to make a plan for your money. You may have something in mind to do with your refund but don’t let the money burn a hole in your pocket. This isn’t a bonus check from the Government. It is money that you pay in throughout the year by either estimates or taxes withheld from your paycheck.
Tax Refund Ideas
Ten things to do with your tax refund are:
- Start or build up an emergency fund. Furthermore, it is important to have money set aside for any unexpected expenses during the year. Moreover, experts recommend having 6 months of money set aside in a savings account.
- Pay off any credit card debt. It is important to not carry any high revolving credit accounts as they continue to rack up interest charges and reflect on your credit score.
- Save for retirement. Most of us aren’t doing a good job in planning for this. Owning a Business prompted me to start later and I was catching up the last several years, increasing a monthly automatic withdrawal from my checking account.
- Open a 529 College Savings Plan if you have children.
- Spend the money on something you need. A new car, a coat, or dental work. Depending on the size of your refund you may have enough money to make a dent in a big-ticket item.
- Start an itemized savings account. Capital One 360 offers some great features that allow you to set up specific savings account goals.
- Make home improvements – this is something my husband and I try to do. My husband just handed me paint color books as he is going to start repainting the walls this weekend. When you own a home, there is always something that has to be done.
- Donate to a charity. I donate all year-long and it gives me a lot of pleasure to contribute to a cause I believe in. Consider donating in helping with something that will benefit your community, medical research, homeless or domestic cause. Recently I connected with the Dana Farber Cancer Institute and Jimmy Fund organization and set up a giving page. Please visit that post and consider contributing to it. So, every dollar counts. Even $5.00 is appreciated and this is a tax deduction.
- Moreover, start a business. It costs money to make money.
- Splurge – buy something you want or plan a trip. A friend of mine always tries to plan a vacation with her refund.
Tax Refund – Ten things to do with your check
All of the above are ten things to do with your tax refund.
Also, mortgage, car payments, and tax debt are all high priority items. Meanwhile, paying off any debt or lowering high-interest rates will end up saving you money in the long run.
Are you receiving a tax refund? In conclusion, are you planning on Saving or Spending?