Plan Smart Ways to Use Tax Refund

January 16, 2020, 11:28 am | Barb Wollan, Laura Sternweis

AMES, Iowa – Is your tax refund the financial highlight of the year? Then it is a valuable resource – one you can use to get ahead, suggests Barb Wollan, a human sciences specialist with Iowa State University Extension and Outreach.
“A tax refund is once-a-year income, so I recommend considering the entire year ahead when deciding how to use it,” said Wollan, who specializes in family finance.
Anyone may receive a large refund if they have extra taxes withheld from their paychecks. However, the people most likely to receive refunds over $1,000 are younger families who benefit from the Child Tax Credit, and especially lower or moderate-income young families who receive the Earned Income Credit because they have a qualifying child, Wollan noted.
For families who have sufficient income to meet their needs throughout the year, Wollan suggests that a great use for tax refund money is to save or invest it – perhaps in college or retirement funds, or for emergencies, or for major goals like buying a house or a car.
Click here for full story.

Share |