Tax Time


Tax Time

Yep it is that time of the year. Tax Time!

Here are some Tax Time facts according to IRS.GOV:

$ 3 out of 4 tax payers will receive a refund
$ The average refund last year was $2,700

So first of all, file your taxes! It creates a HUGE financial and emotional mess when you don’t. If you have a tax ‘situation’ seek professional help.

While most people think of getting a tax refund as a good thing, it really is a waste of your money. In the February 5th TOG Blog ~ Time Value of Money ~ we talked about the time value of money and financial success. When you receive a refund that means that the government held your money for 12+ months at zero percent interest. Furthermore, that means that you have lost the opportunity for what you would have used that money for (i.e. paying off debt or earning interest in an investment or savings account). Do some research and find the best way to minimize the amount of tax you pay every month.

So that is an action item for this year, but if you are going to receive a refund, let’s talk about what to do with that Tax Time money. You can turn this into an opportunity.floating dollars1

Here are a few Tax Time ideas for your refund:

$ Pay off consumer debt
$ Beef up that emergency fund
$ Invest it (retirement, college)

Think opportunity…This is an opportunity to move forward towards creating a financially fantastic life.

YOU CAN DO IT!

For more Tax Time information:
In years past, retail companies would target refund season as a time for people to ‘splurge’. After doing some research, I am happy to report that that is NOT the trend for this year.

Here is a great article from Bankrate.com ~ How Americans will spend their tax refund



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