Are You Getting An Income Tax Refund?

Lucky you!  If you are, may I offer you a few suggestions?

1. Look at adjusting how much income you are withholding from your pay.  A refund always feels like a bonus, but in reality, you’ve given the government an interest free loan.   Why not adjust how much is withheld from your paycheck each month by increasing your exemptions?   Give yourself a monthly spiff instead.
2. Do you have credit cards with a balance over 50% or 30% of your credit limit?  Pay them down to below 50 or below 30% and give your credit score a boost.   
3. Imagine how satisfied you would feel paying off a credit card with a high interest rate and cutting up the card? 
4. Invest your refund into a traditional or Roth IRA or other retirement plan.
5. Start a 529 account for your child.  It’s never too early to start saving for college.
6. Save your refund towards a down payment or closing costs on your next home.  "Zero and low down" loans are much tougher to qualify for.   Especially if you have credit issues (which in that case, you should probably refer back to items 2 and 3).

Please do not get a income tax refund loan.   These loans are loaded with high interest with all intentions of you not paying them back once your refund shows up.  E-file and try to be patient.

As always, consult with your professional Mortgage Planner, CPA and/or CFP.  Everyone’s personal situation is unique and may call for a specific strategy and complete review of your financial information.