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The Smartest Thing You Can Do With Your Tax Refund

Many taxpayers prefer to have too much tax withheld during the year, so they get that little extra boost at the beginning of the next year.

The son of one of my co-workers calls it the “Big Money”. So, how are you going to spend your tax refund this year? Are you going to use it to pay down your debt? Maybe you’re planning to put the whole amount into savings. Alternatively,maybe you are planning a vacation or some other large purchase with your refund this year.

It’s something worth considering so that you don’t end up wondering where they money went next month when you have nothing to show for it.

Debt Pay Off

Many people use their tax refund to pay off, or at least pay down their debts. Personally, I think this can be a very good choice depending on where you are financial. If you’re carrying a lot of unsecured credit card debt, you should seriously consider this option.

If you are so far in debt that you have accounts that have been charged off, then you want to use your tax refund to help eliminate those debts once and for all.

  • This is the perfect opportunity for you to contact the collection agency and see if you can negotiate a debt settlement.
  • Once your debt has been charged off, it is usually purchased by a collection agency for pennies on the dollar.
  • What this means for you is, they are usually willing to cut a deal. As long as they get their money back and a small profit margin, they’ll be happy.
  • You can sometimes negotiate a settlement at 75% off the total balance due. If you really want to make some quick headway on getting out of debt, this is the way – and the time – to do it.

Savings

If you do not have any debt, or very little, then the next thing to look at is how much money you have saved. You should always have a little cushion of “rainy day” money set aside for emergencies. If you have less than 3 months of expenses saved up, then this is where I would recommend you put your tax refund.

It may not be the glamorous or fun choice, but it will insulate you from life’s problems and be far more rewarding than a major purchase. An emergency savings fund is insurance against Murphy’s Law.

If your emergency fund is set, take a look at your retirement fund. Are you regularly putting away money for your retirement?

Vacation or Large Purchase

If you have no debt to speak of, and you have a fully-funded emergency savings account, then you may decide it is time to treat yourself for a job well done. Congratulations! You are in the very top percentage of Americans. Very few people can say they are debt free and have 3 months of expenses saved up.

So, how do you stack up against the average American? 43% of us plan to save our refund, 41.9% play to use it to pay down debt, 13.2% plan to spend it on a big-ticket item.

To conclude:

Life was meant to be enjoyed. For more resources on getting out of debt and living debt free, visit www.taxreturn247.com.au.

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Online Procedure of Filing Income Tax Return Has Simplified the Process

income tax

Contribution of every citizen is necessary for the development of every nation. For the progress of any nation, the main attribute which is necessary is finance. Every country needs money in order to grow and to help its people to live a better life. In order to develop the nation, government arranges finances from numerous sources. Income tax is the one of the major sources for arranging finances for any nation. That is the reason every person is required to pay the income tax, if return is applicable on their income. The government takes the tax on income on the basis of annual income of the people.

There are two genres of returns (i.e. individual and professional). Under the individual category, one is supposed to file return personally on the basis of the amount earned by an individual. In the case of professional income tax returns, the amount is deducted from the salary of person. The process of filing return involves filling of some forms, with all the information regarding the salary of the tax payer. Filing return happened to be a cumbersome task earlier. But, with the passage of time, the government has simplified the procedure to a great extent by introducing the process of filing online income tax returns.

The government has launched its website which has proved to be quite helpful in filing returns. On the website of the income tax department, launched by the government, millions of people can file their returns online. The website even allows the tax payers to pay the amount through their credit cards. The Internet portals facilitate the users to pay the amount while sitting comfortably in front of their computers.

For paying through e-mode one requires to fill an online form with all the details. Once you have filled your form, you are required to enter the credit card number and a special code which is written behind the card. After these simple steps, your income tax return will be paid. This method has solved the problem of paying return for those who are familiar with the Internet. They can conduct the online procedure of paying the taxes easily. visit http://www.taxreturn247.com.au for more detailed information and updates.

income tax

You can go through the terms and conditions of filing return on the official Website of income tax commission. These specified terms and condition on the site help to get complete and genuine information about the rules and procedure of paying tax. It also facilitates the users to download the form for paying tax offline. There are ample number of other Internet portals that provide many facilities related to the tax return. With these portals, applicant can also calculate their tax amount within a minute by entering their income details.

So, it can be concluded with the above analysis that filing the income tax return is no more a tedious task and can be performed easily while sitting at home. Internet users can find such portals with simple search on Internet. Government has simplified the procedure of paying the return and it no more remained a dilemma for the people. For the betterment and growth of our country, filing return is a way to contribute to our nation. There is no doubt in the fact that in the coming time we can expect simpler procedure as compared to the existing one.…

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