5 Tax Return Tips
Updated: Jul 12
It’s tax season and we are all anxiously waiting by our mailboxes to see how much the IRS might give back to us. However, first, we need to discuss how to responsibly save your money, I know--YAWN. I am tempted to buy myself a nice purse, just like the rest of us are. It’s exciting to receive money back from the IRS, but keep in mind, it’s not a gift. If you get money back on your taxes, it's actually your money collected from paychecks and disbursed back to you, meaning it is not "free money."
This article has some suggestions and tax return tips so you know how to better use your check this year.
Loans are crippling and over the year interests start to compile on your loans. The best way to get on top of this is by paying your loans off as quickly as possible. That means being on top of your finances, so you can soon have the freedom to invest in the things you love. Saving money while going to college can be really difficult and unfortunately, loans are an awful part of adulting, but by using this tax return tip, you can soon book that amazing trip to Bali.
Another awful part of adulting is receiving bills. Whether it be a utility or even just the water bill, each month can become debilitating. By using part of your check to pay for certain expenses, you can use the rest of your check to have dinner with your friends or even better, save it towards your vacation jar. The little leeway that comes with your return can add up and make this month a lot easier on your bank account and financial stress.
This tax return tip will help you out in the long run. We can’t anticipate emergencies, but we can prepare for them! Rainy days are a part of life. Although your first instinct might be to spend your check, you can just deposit it in your savings and not think about it ever again. My best advice is to deposit it as soon as you receive it: this way, you keep temptation out of arms reach. If a rainy day or emergency does happen, you’ll already be prepared!
Do you like to shop and never look at the price tag? Do you blindly swipe your credit card and not even bat an eye at the total? if so, then this tax return tip is especially for you. Grab your check and pay off your debts. If you have small debts, try paying those off first so you will feel more satisfied as opposed to trying to pay off a larger sum. This will improve your credit score and maybe better help balance your finances.
Have you fallen back on your resolution? This is a perfect time to reevaluate your goals and possibly invest in that gym membership you skimped out on. Our wellbeing is invaluable. Use that extra cash to even possibly take that salsa class you always wanted or schedule that meeting with a personal trainer. If fitness is nor your thing, think about investing your return in a skill you always wanted to learn. Professional development and trying to live a healthy lifestyle are also great. Try investing your check on a course that will help give you a raise!
Filing taxes is a daunting part of being an adult. Even though, the return is nice. Receiving your return is like being handed power. As we know from Spiderman: “With great power comes great responsibility.” I hope this blog gave you the power to rethink your spending. Try your best to do both, use the money towards improving your finances, but save a little for yourself to have fun too! These tax return tips and tricks are ones that I swear I will follow myself. Regardless of how you decide to spend what the IRS gives you back, I hope you do it wisely and responsibly.