The Ten Wisest Investments And Purchases This Tax Season
Tax refunds help Americans in more ways than one. Instead of spending on shoes, clothes and other frivolous items, many Americans are looking forward to their tax money being spent on bills, past due payments and their families, especially with the economic outlook of 2013 and its impact on American spending. Even the IRS has been having trouble keeping up with the influx of tax return requests, asking taxpayers to give them more time to complete filings, which could slow down your refund.
There are about seven weeks left until the final April 15 deadline. But with so many people getting a jump, it’s not too soon to give some thought to how best to use that refund. Find better ways to spend your tax dollars this season, and even get ahead for next year’s tax season, with these wise tax season purchases and investments. You’ll be glad you took the time (and money) to do so!
There’s no better purchase or investment with a little extra cash than to save it. Watch your money grow over time in your savings, preparing you for any type of financial emergency, or just to have more money in your stash for those rainy days when unemployment, childcare, or travel need to be paid for.
Starting A Retirement Fund
If you haven’t already prepared yourself for the possibility of retirement, plan to do so as soon as possible and use your tax refund to begin an investment into your future. Starting your own retirement fund could add up in the long run, and your contributions during the year to your fund could be used on your taxes next year. Look for retirement funds that are qualified IRAs or 401(K) that you could write off during the next tax season.
Pay Off Your Car
Another wise tax season investment is to finally pay off your car. If you are a used car owner, this could save you more money over the course of the year with car loan payments than it will cost you this season.
Give To Charity
Prepare for the next tax season by spending some of your tax refund giving to charity. Charitable donations are a great tax season write-off, as well as a great way to give back and increase your philanthropic efforts.
Pay Down Loan Interests
Certain loan interests, like college loans, could be an easy tax write-off. Use your money wisely this season and pay down on some of your loans, then add the interest paid to next year’s tax filings.
Go Green In Your Home
If you have been thinking about improving your home with energy-efficient appliances and maintenance, feel free to go green and see the ‘green’ during next year’s tax season. This tax credit gives homeowners the flexibility to go green in their home and see a return during tax season.
Buy A Work Computer
If you plan to buy a new computer this year, this could be a great way to get a leg up on next year’ s taxes. Buy a computer for work this season and you could get the tax credit associated with your purchase next year!
Job Search Tools
If you are still unemployed this tax season and expecting a tax return, let your money work for you and hire a job hunting professional or professional job tools to get you the job you’re looking for. Whether its for resume help or using an agency to find you the best position, spending some of your tax return dollars on professional job searching tools and see the return next year while filing.
There’s nothing like a good ol’ fashion vacation to spend your extra dollars on. Find a great deal on multiple travel sites and take a well-needed vacation this year. Expand your horizon and choose a location that is different to maximize your spending and experience! Traveling is a great way to spend a few extra dollars and some quality time with your loved ones.
Start Your Own Business
Use the money received from your tax return this year to begin a new business venture. Whether it’s your own self-sustaining business or a “side hustle,” invest your tax return in getting business tools, professional advice, starting your own website and other important start-up tools.