Wise Ways Denver-Area Residents Can Spend Their Tax Return

May 22, 2019

Whether you’ve filed your 2018 income tax return with the friendly team of professionals here at Advanced Tax Solutions or not, it’s time to think about diligent ways to spend that return. Some  among us utilize this extra cash on a splurge —a vacation, a new car or appliance, or to update our wardrobe. While spending can be fun, it’s also important to remember about the more responsible ways you can utilize your tax return for a more profitable and prosperous present and future. 

The refund is actually your money, and that money could be used throughout the year to lower debt, save for an emergency or invest for the future. Some people utilize their return as a strategy to minimize their weekly withholdings, so that they earn more each week instead of seeing a large tax return at the end of the year. If you’re not sure whether this change is right for you, talk to the certified professional accountants here at Advanced Tax Solutions —or you pursue one of these refund-investing methods that could help you out throughout 2019. 

If you are one of the millions of Americans who have high-interest debt hanging over your head, you could utilize your tax return could to make a considerable dent in that debt. With interest compounding on you every month, getting rid of this burden could mean freeing up your future cash flow with big one time payments thanks to your tax return. 

One particular element of personal finances that can be cleaned up with a robust income tax return is credit card debt, which is a a large burden for millions of Americans nationwide — one that can have a negative impact on your credit history. The national average APR is around 17%, but some credit cards may charge even more if you carry a balance you carry month to month. If your refund doesn’t cover the entire outstanding balance on your high-interest debt, making a dent in the principal amount could still put you in a better position to cover the rest throughout the rest of the calendar year.

Many Americans don’t have enough to cover expenses in the event of an emergency. Your tax refund could be a solid foundation to start your new emergency fund with. Emergency funds are terrific ways to spare your weekly income when it comes to unexpected auto repairs, sudden unemployment, medical bills or travel expenses. 

Most financial experts recommended that you have two to three months worth of your normal expenses in your emergency fund, but if this year’s tax return is more than you expected, you might want to consider saving more. 

If you have ever been tempted to use your existing emergency fund on a new piece or technology, a vacation, or any other “treat-yourself” expenditure —you may want to consider a targeted savings account as an option for your tax refund.

Both targeted savings accounts and emergency funds are two of ne of the best things you can do with your money is make it work for you. Investing your tax refund is one way to try and grow that money over time. 

While a tax refund alone might not be enough to buy that dream property you’ve been looking at, it could help you make improvements to your current home that you’ve already made significant payments on. Home improvements can increase the overall value of a home, which will make it more valuable when you do decide to sell —and more enjoyable to live in in the time being. Have a home repair you’ve been putting off for far too long? Maximizing your enjoyment in the home is a worthy investment for your tax refund.

Investing in yourself is another terrific way to spend a tax return income. By learning a new skill, or become better at something you already do, you can make yourself more skillful both at your current position or in the eyes of future employers. Spending your tax refund on a class or program to improve yourself is another way to invest in both your personal and financial your future.

Still haven’t filed your return? Or search for the right Denver-area tax professional to submit your return in lieu of an extension? At Advanced Tax Solutions, our team of tax professionals takes tremendous pride in the accuracy and transparency we offer when we work with you to file your income tax return. Whether you’re filing for your business or your small family, our dedication to professionalism is all in effort to all-but-reduce errors that will not just delay your 2018 tax return, but potentially cost you time and money in the future. Contact Advanced Tax Solutions today to put an end to the stress and headaches that tax time has caused you, and get your return filed right. It’s the best way to make the right decision about how to invest your return.
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