Three Point Checklist for Making the Most of Your Tax Refund

Choosing how to use your tax refund really is your personal choice. Many Americans in lower income brackets often pay down debt or get caught up on bills from the winter. Purchases to replace furniture, appliances, and vehicles are also typical. What are some other ways to spend your tax refund responsibly?checklistpic

Health Checkup

If you do not have health insurance and cannot afford regular medical exams, your tax refund can be used to get a full health checkup. Ask your physician for a complete battery of tests to ensure that you are not experiencing any deficiencies and are not battling an illness you were previously unaware of.

Pay Down High-Interest Debt

If you have made all of your payments on a loan on time, refinancing may be a good idea. High-interest loans often cause consumers to pay for a product or service twice after interest. If your tax refund is enough to pay off the loan entirely, do so.

Have Fun

Don’t use your tax refund all on necessities or reducing debt. You should reserve at least a little of it to do something fun. Having fun reduces stress. Tax refund time is the only opportunity for some Americans to have a little fun.

Closing Thoughts

Create a checklist for yourself, in order of importance or significance, to spend your tax refund on. If you cannot decide on anything with certainty, create a wish list instead. Speak with your spouse or partner and decide what the best way to use your tax refund is.

Image credit: Oliver Tacke

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  • Huddleston Tax CPAs / Huddleston Tax CPAs – Shoreline, WA
    Certified Public Accountants Focused on Small Business
    18208 66th Avenue NE, Suite 102 Kenmore, WA 98028

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
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    We serve: Federal Way, Des Moines, Kent, Auburn, and communities throughout WA and beyond. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.