Ready, Set, File!
Deductions, brackets, and taxes, oh my! Tax season is underway and many of us shudder at the thought of setting aside time to prepare for the dreaded annual filing. Receipts scattered, forms in disarray, and the April 15 deadline looming in the distance. No matter which tax bracket you find yourself in, there are surefire ways to help you file with confidence and use your highly anticipated refund to your advantage.
Tax season began on
January 27, which means you should soon see a W-2 form from your employer in
your mailbox or online. Based on your eligibility and preference, there are
multiple options for filing your taxes, including working with a professional,
purchasing online tax software from companies, or filing directly through the
IRS Free File.
U.S. News reported the
average tax refund in 2023 was $2,753. According to GreenPath Financial, many
are expecting higher returns this year due to changes the IRS made to
counteract inflation. Whether your refund is modest or substantial, every penny
counts as you look to stretch its potential. Let's consider how you can
leverage this money back to set yourself up for financial success throughout
the year!
Presumably, this return is
more of a bonus than it was an expected payout, providing a financial boost. If
this money is more of a cushion than it is a necessity, you might benefit from
investing in a Certificate of Deposit (CD) to earn higher interest. CDs
typically offer higher interest rates compared to regular savings accounts.
This allows your money to grow quickly over time and maximizes the potential of
your refund.
According to Bankrate, 11%
of taxpayers spend their refund on impulse purchases such as retail, vacations,
electronics and other non-essentials; whereas 28% allocate these extra dollars
into savings and 19% pay towards existing debt.
If you're one of the
taxpayers looking to save or pay down debt, we can help. Currently, Telhio
Credit Union is offering a significant 4.00%
APY on a 9-month CD, earning you healthy interest on your refund. Looking to
use your funds to pay down debt? Telhio offers personal loans with rates as low
as 9.99% to help you consolidate your debt.
As you analyze your existing
financial circumstances and budgeting methods, you might feel comfortable with
applying the 50/50 rule - half of the refund for pleasure and the other half
used for debt consolidation, emergency fund, 401k, your child's 529 plan, or
other savings accounts.
Remember, financial
planning is about making informed choices that align with your goals and
priorities. As you navigate this tax season, consider how you can make the most
of your refund to position yourself, and your future, in a better place.
For more information about Telhio CD or other savings options visit: Full Featured Personal Savings with Online and Mobile Banking: Telhio Credit Union | Telhio Credit Union
