What's the best use of your Tax refund?

MAJ Steve Sheridan — Thu, 24 Apr 2014 11:18:19 -0400

Response by SSgt Gregory Guina made Apr 24 at 2014 11:26 AM

SSgt Gregory Guina — Thu, 24 Apr 2014 11:26:13 -0400

Pay off high interest debt, save, and splurge a little. However if you are recieving a large refund you should consider adjusting your withholdings so that you have more in each paycheck.

Response by MAJ Private RallyPoint Member made Apr 24 at 2014 11:38 AM

MAJ Private RallyPoint Member — Thu, 24 Apr 2014 11:38:03 -0400

Pay off debt or save it

Response by MSG Wade Huffman made Apr 24 at 2014 11:40 AM

MSG Wade Huffman — Thu, 24 Apr 2014 11:40:12 -0400

I would have to say the best thing is to recalculate your withholding so that your refund is very small, or so that you owe a very small amount.   I used to be like the millions out there that looked forward to nice tax return before I woke up to the fact that you are getting zero return (or use) out of that money for a full year.    If you are getting $1200 back this year, reduce your withholding by $100 monthly and put it away in savings or investments and watch it grow!  It will be there if/when you need it.

Response by SFC Private RallyPoint Member made Apr 24 at 2014 12:02 PM

SFC Private RallyPoint Member — Thu, 24 Apr 2014 12:02:29 -0400

Myself I beg and plead with household 6 to allow me get afew dollars to spend for yard work and the rest goes right into the savings account.

Response by MSG Private RallyPoint Member made Apr 24 at 2014 2:10 PM

MSG Private RallyPoint Member — Thu, 24 Apr 2014 14:10:16 -0400

Paying my house insurance out for the next year, killing off my last credit card, save a bit and a new pair of running shoes.

Response by CPT Private RallyPoint Member made Apr 24 at 2014 4:50 PM

CPT Private RallyPoint Member — Thu, 24 Apr 2014 16:50:22 -0400

An IRA. Maxing out a Roth IRA early in the year is the great for compounding interest.
MAX OUT YOUR IRA!!

Response by SFC Private RallyPoint Member made Apr 24 at 2014 5:51 PM

SFC Private RallyPoint Member — Thu, 24 Apr 2014 17:51:42 -0400

Paying off and debts that have a high interest rate is my guess! Or maybe a weekend fishing trip.

Response by SPC Michael Crosby made Apr 25 at 2014 12:17 PM

SPC Michael Crosby — Fri, 25 Apr 2014 12:17:05 -0400

If you have a tax refund of more than $1,000, the first thing you need to do is go change your W-4 so that you don't have so much withheld. Then with the refund and the increase in net pay, first pay down any debts, then invest for retirement (most people aren't saving nearly enough).

Response by CWO3 Private RallyPoint Member made Feb 21 at 2017 11:45 PM

CWO3 Private RallyPoint Member — Tue, 21 Feb 2017 23:45:28 -0500

If you get a return it's always a good idea to pay off any consumer credit that has a higher % rate than the roughly .5% you would earn in savings. Another option is a lump sum toward any taxes or other costs such as insurance. If you are a workaholic and can afford it, take a small vacation or reward yourself with a reasonable purchase. Maybe buy some metals as a hedge against inflation.

Response by SGM Erik Marquez made Jul 25 at 2017 8:57 AM

SGM Erik Marquez — Tue, 25 Jul 2017 08:57:18 -0400

What is a Tax refund? Have not seen one of those mythical things in a lot of years.
Taxation is already legalized theft and social redistribution of wealth for political gain.
No need to "loan" the government money interest free for a year only to beg for it back at years end. Adjust your withholding or advance tax payments to better meet your anticipated tax burden for the next year.. Then use the money your not loaning the FEDs to pay cash vice CC on a needed purchase, or pay down a CC / loan, or pay a living staple that must be paid regardless, mortgage, insurance, dental, what ever.

Response by PVT Mark Brown made Jul 25 at 2017 1:19 PM

PVT Mark Brown — Tue, 25 Jul 2017 13:19:41 -0400

I realize the sage wisdom of declaring the proper deductions on the W-4 form so that at the time of filing taxes one just breaks even. But, I know, as a small business owner that many of my employees preferred to understate deductions so that a good tax refund check would be coming in the spring. These folks really preferred to let the federal government ask as their bank of record for personal savings. Wala! Money! Some seem to look at this as money the IRS was gifting rather than realizing it is actually their own property loaned interest free to the US Treasury. Even a back savings account paying 1% APR is better than getting 0% return. I think the biggest attraction, albeit unconscious, using the IRS as a savings account keeps the money out of the reach of the employee until tax time. Forced discipline.