In light of this, the experts at ATC Income Tax, a premier Atlanta-based organization specializing in tax preparation and tax advance loans, offer valuable advice on maximizing the return on your refund.
As the IRS begins processing returns, an increasing number of Americans find themselves pondering the most beneficial ways to utilize their anticipated tax refunds.
According to a recent report by CNBC, “The average tax refund last year was $2,815, and with many expecting similar amounts this year, the question arises: What is the wisest way to spend this sudden windfall?”
Pay Down High-Interest Debt
Allocating a portion of your refund to reduce credit card balances or other high-interest debts can significantly decrease the amount paid in interest over time. “Prioritize the debt that carries the highest interest rate,” suggests ATC.
Start an Emergency Fund
Setting aside refund cash in a savings account creates a buffer for unexpected expenses. ATC recommends setting a savings goal of $500-$1000 as a good starting point.
Contribute to Retirement Savings
Boost your 401k or IRA with refund dollars to take advantage of potential employer matching and boost your future nest egg through compound growth.
Make Home Improvements
Investing in home repairs or upgrades, such as fixing a leaky roof or installing energy-efficient windows, can save money in the long term. It’s important to seek out the best value for these improvements.
Take a Vacation
Consider using a part of your refund for a well-deserved break post-tax season. However, remember to keep the vacation within your financial means.
Pay Estimated Taxes
For those who owe each year, like freelancers or small business owners, a tax advance loan used for estimated tax payments can save on penalties for underpayment throughout the year.
ATC Income Tax encourages thoughtful planning in the use of your tax refund. By carefully considering how to allocate these funds, you can positively impact your financial well-being.
Operating out of Decatur, Atlanta, and Milwaukee, ATC Income Tax is dedicated to providing exceptional tax filing and refund services. Contact us to learn more about the “tax advance loans” and how to apply online.
Disclaimer: This material is not meant to be financial advice; it is provided only for informational reasons. The “Tax Advance Loan” from ATC Income Tax comes with specific terms and conditions, including eligibility and loan terms.
Note: The deadline for filing 2023 tax returns is April 15, 2024, with an extension to April 17 for residents of Maine and Massachusetts.
