While paying taxes can cause quite a headache, being part of the 80% of Americans who receive a tax refund proves that it can have its benefits.
The average income tax refund in 2018 was just under $2,900. Considering that nearly 7 out of 10 Americans have less than $1,000 in savings, a bit of “extra” cash can serve to make a huge difference.
So, how are you planning to use your tax refund?
Here are 12 smart things TurboTax suggests you can do with this year’s tax refund.
- Create an Emergency Fund
- Send it to Savings
- Pay off Debt
- Fund Your Retirement
- Look to the Future
- Seed the College Fund
- Invest in the Stock Market
- Kickstart Your Career
- Prepay Your Mortgage
- Start a Business
- Make Home Improvements
- Buy Life Insurance
If you would like to read more, check out TurboTax’s article here.
References:
https://www.gobankingrates.com/personal-finance/data-americans-savings/
https://turbotax.intuit.com/tax-tools/tax-tips/General-Tax-Tips/12-Smart-Things-to-Do-With-Your-Tax-Refund/INF29119.html
https://www.bankrate.com/taxes/average-tax-return-2018-2019/
