Five Ways to Use Your Tax Refund Wisely
Texas CPAs Give Tips for Maximizing Your Refund

DALLAS — If you recently received or are expecting a tax refund, you’ve probably already thought of a dozen different ways to make the proceeds swiftly disappear. Here are five ideas from the Texas Society of Certified Public Accountants for using your refund to improve your finances.

1. PAY DOWN DEBT. With interest rates on credit cards averaging between 13 and 14 percent, paying down your debt is one of the smartest things you can do with your refund check.

2. FUND YOUR RETIREMENT. Consider investing all or at least some of your tax refund in a tax-favored retirement account. With a traditional IRA, your earnings grow tax-deferred and if you meet certain eligibility requirements, your contribution may be tax deductible. Contributions to a Roth IRA are not deductible, but withdrawals are tax-free if certain conditions are met.

3. ESTABLISH OR REPLENISH AN EMERGENCY FUND. Generally, CPAs say you should have six months’ worth of living expenses set aside in case of a job loss or emergency. If you don’t, use some of your tax refund for this purpose.

4. DO SOME PREVENTIVE MAINTENANCE OR IMPROVEMENTS. Are there some minor repairs you could make today that would spare you a larger expense down the line – for example, a new roof for your house or tires for your car?

5. TAKE A VACATION. If you’ve been working hard all year and saving regularly, a well-needed vacation may be in order. Spending quality time with your family is a good investment, as long as you are not under any other financial strains.

For more tax tips, visit the Texas Society of CPAs’ free online consumer resource, www.ValueYourMoney.org, and get answers to frequently asked tax questions.

FOR MEDIA INTERVIEWS: To schedule an interview with a CPA, contact Avery Roth at 972-687-8688, 1-800-428-0272 ext. 688, or aroth@tscpa.net.

ABOUT TSCPA
TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 28,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.