When people get the extra cash money, they will always be thinking on how to spend it. There are people who may use the money to pay for some essentials like gas, food or rent. Others may use the money to pay out their debts or to boost their savings. At least 88 percent of the people who get the refunds from the IRS, they will deposit it in their bank account and this is something which is smart. The retailers understand that if people have more money in the checking account, they can be tempted to do even more spending like going out to a nice dinner, clothes and shoes. The longer the money stays in the checking account, the greater people get temptations.
The following are smart ways that you can use the refund and you can be assured that you are getting something productive from it.
Take the money out of the checking: so that you can avoid the temptation to spend your money, you should move the money away from the checking account to take it in a new account where it can be hard to spend it like in the mutual fund, retirement account, brokerage account and saving account.visit updated blog post at http://www.forbes.com/sites/kellyphillipserb/2016/01/19/another-state-puts-brakes-on-tax-refunds-citing-concerns-about-identity-theft/#2715e4857a0b1d1092573b51
Health spending account: it is the best way that you can use in order to maximize the tax refund when you put the money towards healthy savings account. Since many people are opening more the health insurance plans that have higher deductible, they can become even more eligible in opening up and in contributing to such account which can allow for the pretax contribution. The contribution will grow the tax deferred and the withdrawals that are used are meant to pay for the qualifying medical expenses tax free.
Paying down the debt; the best way to use the tax refund is paying down the debt which charges high interest rate. You may save when you pay less fees and interest or reduce the amount of the debt that someone owes.
529 accounts: this is the best place to spend your money if you have children and you want to set aside some amount so that you can pay for their future educations. The money saved in this account, can be used to pay for college tuition and it is tax free. There are many states that can offer the deduction on the income tax return when you contribute to their state plan. You can increase the contribution to the 401K of your employer plan. When you use the tax refund, you can try to make the ends met while the additional contribution is in the way to reduce the pay.http://www.taxreturn247.com.au
Paying the extra for the mortgage payment; when you think about making the extra principal payment on the mortgage, you should make some additional payment for at least 30 year mortgage every year, you may have the mortgage paid off before time and you will be able to make extra money. However, you should be aware that you should not be happy about getting the refund since this means that you are paying more than what you are supposed to pay in the first place.