For many Americans, a tax refund is the largest check they will receive all year. Saving all or part of that refund can help you prepare for unforeseen expenses throughout the year or perhaps reach a larger savings goal.
Research has shown that setting aside just $500 can cover a lot of the emergency expenses people often experience. Perhaps, though, you want to catch up on some bills, save for a major purchase, or even treat yourself to something special. Whatever you have in mind, tax time is a great opportunity to put money aside.
Here are some basic steps to take.
It’s important to choose a reputable tax preparer that will file an accurate return. Any mistakes could result in additional costs and complications in the future. You can get FREE tax preparation assistance by IRS-certified volunteers at a VITA location like Center For Siouxland!
Putting it all together
Planning ahead can help you to take advantage of tax time to make the most of your tax refund. Take some simple steps to make a savings plan. If you are eligible, save on filing fees by using a free or low-cost filing options. Finally, make sure you protect your tax information so that you can feel confident that your return is filed properly, and you get the refund you have earned.