Income Tax Refund: The Do’s and The Don’ts

Are you expecting, or perhaps already received, an income tax refund from your 2019 filing? If so, a tax refund is an excellent opportunity to set yourself up for success and in a better financial position for the future. We’ve rounded up ten creative ways to put your tax refund to work:

Do – 5 Smart Ideas for Your Cash

  • Pay down your existing debt
  • Boost your cash reserve or emergency fund
  • Save for a major goal, like a down payment on a house
  • Home improvements or replace one faulty appliance in your home
  • Establish or fund a 529 College Savings Account for your children or grandchildren

Don’t – 5 Common Mistakes¬†

  • Don’t leave your refund in your checking account
  • Don’t splurge on frivolous things that will depreciate over time, otherwise known as a shopping spree
  • Don’t spend it all on a vacation
  • Don’t make big purchases that require future payments
  • Don’t gamble it away

The Reality of Your Refund

It’s important to remember that your tax refund isn’t free cash; it’s income earned during the course of the tax year.¬† Plan accordingly and put your refund towards your personal financial goals. You’ve worked for your refund and now it’s time to make your refund work for you.

If you want to know the status of your refund it can be found HERE.

If you have yet to file your 2019 taxes or have any questions about our services, please contact us HERE or give us a call at 248-934-0550. We are here to help.

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