3 Smart Ways to Invest Your Tax Return

Maximizing Your Tax Refund: Smart Financial Moves for Taxpayers

Tax season is upon us. And while we wait for our tax return to arrive in the mail or our checking accounts, there are quite a few things to keep in mind.

According to Credit.com, taxpayers should be aware that the latest data from the IRS shows that tax refund totals are, on average, down 17% from refunds received in 2018 due, in part, to an increased standard deduction as a result of The Tax Cuts and Jobs Act.

To give a more defined reason to use those funds wisely, Credit.com shared three ideas to make money work smarter and positively impact the overall financial health of taxpayers.

• Come up with a plan to pay off a debt: At first, it might not be the most exciting use of a refund, but those are the first steps towards financial freedom. Along with the plan, determine eligibility for a debt consolidation loan or lower interest rates based on the credit score, and create a strategy based on the total payoff number. 
• A perfect opportunity to save: Emergencies could arise along the way, and a tax refund could the ideal chance to save.
• Invest in home projects and experiences: A home improvement project, education, and travel are some of the things that can feel guilt-free about spending money on because the investment will return in both enjoyment and resale value.

Conclusion:

As tax season unfolds, it’s essential to make the most of your tax refund. Recent IRS data reveals that refunds have decreased by an average of 17% since 2018, partly due to changes in deductions under The Tax Cuts and Jobs Act. To optimize these funds, Credit.com suggests three wise strategies. Firstly, consider using the refund to pay off debt, taking steps toward financial freedom and exploring debt consolidation options. Secondly, view your refund as an opportunity to bolster your savings, providing a safety net for unexpected emergencies. Lastly, invest in home projects, education, or travel, as these expenditures can yield both enjoyment and enhanced resale value. Make your refund work for you and your financial well-being.

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