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Denver Tax Refund: Ideas for Using the Extra Money

July 1, 2020

Depending on the end result of your tax filing, individuals and couples will either receive a refund or owe additional money. If your credits and withholdings leave you having paid in too much throughout the year, then money is returned to the filer via a refund. Once calculated, if the end result is short of the owed amount then you will need to submit payment prior to the due date.

The majority receive tax refunds in America but what comes next? Deciding what to do with this extra cash can help in a variety of different ways. For some, saving or investing is the best practice for their situation while others may elect to simply take a vacation or splurge on an item they had been hoping to purchase. Regardless, every situation is different but there are multiple options for utilizing refunds of any size. 

Debt Payments
Paying off or down on credit card or other debts with high interest rates will help to save you money. In addition, depending on your personal situation, the end result could be an improved credit score.

Emergency Fund
Building or adding to an account that is for use in the event of an emergency can also be an important safety net for you or your family. Consistently adding to this fund with any available cash will ultimately build a nice stockpile should it be needed.

IRA Contribution
IRA contributions reduce average gross income and thus can lower your tax bill or perhaps lead to a refund. Utilizing this added money to make a contribution could be one way to help yourself now and into the future. 
Invest (Stock Market)

Putting the money to play in the stock market is an option which could also pay big dividends. Depending on where exactly the money is invested, it may return the taxpayer even more additional funding down the road.
Invest (Family)

If you have a child or multiple children, a savings or other investment account is also a viable option for your tax refund. Putting this extra money to work for them can add up as they grow older and be put toward larger future purchases such as automobiles or college.

Consider taking a family vacation. Depending on the price of your planned trip, a tax refund could offer valuable spending money which would have initially come out of pocket or help pay for the cost of covering travel, accommodations, or other expenses associated with the trip.

Should you need any help determining your filing status, are in search of answers to tax related questions, or need to file a return then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!