Tips to receive the maximum benefit from your tax refund:

Are you eagerly anticipating to receive your tax refund for weeks? When it finally arrives, you spend it in one day? Many people view tax refunds as if they were unexpected bonuses. They see the funds as a gift from the government to be wasted. A tax refund provides you the opportunity to improve your financial situation.

• Tips to receive the maximum benefit from your tax refund
• Savings Bonds Tax Season
Pay what you owe:save your tax refund

Use your refund to reduce your debt as much as possible. Which you should pay off your credit cards. If you have an outstanding balance with more than one credit card, try to pay off the  credit card with the highest interest first. This will allow you to have more funds available to pay higher amounts on outstanding balances. Alternatively, you can use your refund to pay off other debts, such as an auto loan or a loan against the equity in your home.

Save for an emergency:

Why not maximize your tax refund to deposit it in a savings account in a certificate of deposit, or in a retirement fund? Your tax refund will continue to grow if you deposit it in a savings account or investment account. It is always beneficial to have a savings account which can make a withdrawal when you have a big expense such as car repair, a medical emergency or other unexpected expenses. This way you will prevent the need to add more to your burden of debt.

Consider your financial goals:

Are you trying to save for the down payment on a house or a car? Do you expect to contribute to your child’s college tuition? Consider using your tax refund towards these goals. If you have not yet set your financial goals short and long term?  By doing so, you will be more aware of how you spend your refund and any money received in the future.

Remember that you work hard to earn money and should enjoy a prosperous lifestyle. Think about how you will use your tax refund. It is not always easy to make wise financial decisions, however it definitely will benefit you and your family in the long term.

Savings Bonds Tax Season:

Tax season is an excellent time to start or increase your savings for the future! Savings Bonds of the United States (US Savings Bonds) are a safe and easy method to do it.

There are many great reasons to buy savings bonds in the US tax season:

  1. You do not need much money to start – you can start with just $ 50. Use only part of their tax refund to start saving.
  2. It is easy to do when you pay your taxes. Just select the amount you want to save from your tax refund and you will receive the voucher by mail.
  3. Earn interest. Your money starts to increase immediately.
  4. The bonds are safe. Bonds never lose their value and are backed by the Government of the United States.
  5. It will not incur payment of dues. There are no fees associated with buying or liquidate their bond.
  6. Give your loved ones savings. The bonds can be purchased on behalf of another person – will help boost savings and dreams of loved ones.What are Savings Bonds Tax Season?Savings Bonds Tax Season Savings Bonds are US Series. These bonds are issued and guaranteed by the US Department of the Treasury. Savings Bonds Tax Season can be purchased directly in the form of statement of income. Having had the bonds for one year, you can settle your bonds in most banks or credit unions. The longer you keep the bonds, the more it increases in value. Your bonds will earn interest for up to 30 years. If you cash in your bonds before a period of five years, you will lose the interest earned on the bond in the last three months. For example: if you buy a bond and redeem it 12 months later, you’ll get back your original investment and 9 months of interest. The value of the bonds would be based on the rates applied over the initial 9-months period.You are guaranteed bonds will increase in value! The bonds are safe, simple and reliable.

Please share your comments below on tips to receive the maximum benefit from your tax refund:

4 thoughts on “Tips to receive the maximum benefit from your tax refund:

  1. Thanks for posting this! I’ve definatly been a spender when it comes to getting my refund! But I will take what I got from this post and make changes to spend less or none all when I get my tax refund!

  2. Hi
    Oh how I miss my student days when I actually got a tax return! Instead of owing taxes… Yes of course I had a lot of tuition fees but I sure was happy to receive my return of a few thousand dollars. I would typically pay debt and go on a short trip. I am not sure I get what you mean when you say to pay the lowest amount on a high interest credit card to have more cash flow to pay more on other cards. Shouldn’t you pay as much as possible on a high interest card? or am I understanding something wrong?

    1. Hi Emily,
      Thank you for stopping by again! Thank you for noticing my mistake in the article. It’s been corrected. You should always pay extra towards the credit card with highest interest rate.

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