What Can You Do with Your IRS Tax Refund?

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1-800Accountant explains the various ways an IRS tax refund can be spent.
1-800Accountant explains the various ways an IRS tax refund can be spent.

As another IRS tax season has come and gone, taxpayers who overpaid Uncle Sam are now receiving their refund checks in the mail or even sooner via direct-deposit into their bank accounts. In recent years, the average refund amount has been over $3,000, and millions of Americans receive some amount of money back. This is certainly no chump change. It can be used in a variety of ways. Here are some ideas on what you could do with your IRS tax refund:

— Take a nice summer vacation.

With the summer months approaching and kids getting out of school, it’s the perfect time to take a nice vacation to get away with your family or friends. Do you want to hit the beaches of sunny Florida? Are you dreaming of taking a relaxing cruise in the Caribbean? Are you more of a hiker looking to take on the vast paths of Yosemite National Park? No matter what your dream trip is, you may want to treat yourself by using all or part of your IRS tax refund to enjoy a few days or weeks in paradise

— Save it to help pay the IRS in the future.

While the 2014 IRS tax season is done, this by no means signals the end of paying taxes to Uncle Sam. You may want to use all or part of your tax refund to save for future tax-filing purposes. Whether this is for covering personal taxes or making estimated tax payments for self-employed professionals, you can never have enough cash saved up. It’s always nice to have some money you can pull from when you need it. To make your tax-filing experience less stressful in the future, it certainly can’t hurt to have this financial cushion from saving tax refund money you previously received.

— Inject it into your small business.

If you are one of the nearly 30 million American small business owners doing what they love, why not put your tax refund money toward your enterprise? Perhaps you want to invest in a high-tech computer. Maybe you want to establish a brick-and-mortar location. Or, you could be looking to hire a new employee to help you reach even greener pastures with your entrepreneurial efforts. It can never hurt to have enough money in store for a small business. That’s why a check worth a few thousand dollars could greatly benefit your company now and in the future.

— Stick it into a retirement account like a Roth IRA.

If you maintain a retirement account, such as a Roth IRA in which money you withdraw is not taxed, you may wish to consider adding some of your IRS tax refund dollars to this savings account. The future is uncertain. You never know when the economy could take a dive or something in your life would require some financial spending. This is why having a retirement account and contributing to it on a regular basis is imperative for everyone.

1-800Accountant can help you find the best ways to spend or save your money, especially if you’re a small business owner. Get your small business accounting and business finances on the right track today. Call 1-888-749-0117 or visit www.1-800Accountant to get started.

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