10 Things to Do with a Tax Refund—But Hurry and File!!
A lot of us need our tax refunds and can be thankful the recent partial government shutdown is over for now. Thousands of Internal Revenue Service (IRS) workers were furloughed or worked for free until it reopened. The shutdown just ended on Friday, January 25, but it may be a temporary situation. The government may partially shut down again beginning on February 15, according to President Trump, since Congress has not and may not reach a budget deal for national security that he is willing to accept.
The IRS starts processing tax refunds today, January 28. Best turn your tax statement in online as soon as possible, to possibly avoid a delay. Then you can think about what to do with your tax refund, and the following are a few ideas, including some that are practical and some that are completely impractical.
5 Practical Ways to Spend your Tax Refund
Financial advisors suggest that extra money should never be spent blindly. It’s best to work toward financial goals. The following are some smart ways to spend tax refunds:
- Pay down your debt. If you have credit cards with high interest rates, it’s best to pay them off as soon as possible. This is a great strategy for eliminating the month-to-month financial squeeze.
- Start an emergency fund so that you’re ready when the unexpected happens. The amount to put up for emergencies may be practical at $500 or would best have a minimum of $1,500 or more—depending on your situation.
- Save up for anticipated expenses, such as a needed new roof, an upcoming move, or replacing an old HVAC system on your home.
- Put money away for your retirement. Financial experts say it’s smart to get in on tax-advantaged investments, such as IRA accounts.
- Add to a college fund for your children or grandchildren.
5 Fun Ways to Spend your Tax Refund
If you work hard all year around, you deserve to splurge! Spend your tax refund on something fun or something you’ve always wanted. Life is too short to always do the sensible thing. The following are five fun ways to spend your tax refund:
- Take a dream vacation! If there are places in the world you’ve always dreamed of seeing, pick one and go there. Take a lot of pictures because it’s likely to be an unforgettable experience that you’ll enjoy revisiting with photos.
- Buy a new smart TV, video game console, a set of pots, comfortable couch, reclining bed, furniture for a man cave or she-shed, or the entirely frivolous things that you know you don’t actually need but that you will very much enjoy on a frequent basis.
- Buy a new car, even if there are plenty of miles left on the one you already have. Why not? You work hard for your money!
- Get a new smile! There are many different possibilities for improving your smile these days. You can even have a quick fix, with porcelain veneers. Check out the pros and cons of the many options and get that smile of yours in its best shape ever. There are many benefits to a confident smile, including bigger raises, according to statistics.
- Get your dream workout equipment, to keep fit in the comfort of your home. If you have gym equipment at home, you could exercise while watching TV. Simply walking briskly for 40 minutes every day is usually enough to shed serious pounds.
Will Your Turn in Your Taxes ASAP?
With another partial government shutdown looming, in which IRS workers may not be showing up to work, best get your taxes turned in as soon as possible. That’s if you have a refund coming. If you owe, this year you can wait as late as April 15 but no later, to avoid penalties.