Make your tax refund work for you!

Tuesday, January 30, 2018

 

Every year, the middle of April marks the end of the federal tax return filing season. For many of us, that can mean seemingly endless forms, paystubs and other paperwork. However, tax time can also be an opportunity to save for your future! Here are some ways to make your tax refund work for you.

  1. Put your refund into a saving account. For people claiming some of the unique tax credits that benefit hardworking families around the country such as the Earned Income Tax Credit and the Child Tax Credit, their tax refund may be the largest sum of money they will see the entire year. By opening a savings account, you can deposit a portion or all of your refund and let the amount grow over time. Luckily, you can do this using the IRS Form 8888, which will divide your refund over multiple accounts.
  2. Put your refund into a savings bond. As a part of the Form 8888, you are now able to easily and seamlessly purchase Series 1 US Savings Bonds as you prepare your tax return! These 30-year bonds are backed by the United States government and they will pay you interest yearly. Bonds are a great, low-risk option to grow your savings while receiving a bit of money each year.
  3. Get your taxes prepared for free. If you make less than $53,000 a year, you can your taxes prepared at no-cost by IRS-certified volunteers in your local community! The Volunteer Income Tax Assistance (VITA) program has served millions of Americans for more than 45 years. If you qualify, you can find your local VITA program using this tool—at these VITA sites, you can find expert information to help demystify the tax code and to prepare your taxes.

These three steps are only a small sample of how you can make your tax refund work better for you!

Our thanks to Justin Chu, program associate at the Taxpayer Opportunity Network, for this content, part of the America Saves campaign!

 

Tags/Keywords

savings, irs, income taxes


 
 
 

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