Tax Refunds - What Do YOU Do With Yours?

Friendly Reminder: The Tax Deadline to file your 2014 returns is quickly approaching!

Don’t worry; there are several options still available to you if you’re interested in filing electronically or for an extension. For further information regarding your federal tax returns, please speak with your financial advisor or licensed accountant.  

I filed my first tax return when I was seventeen years old and I remember being overwhelmed with the concept of being financially responsible for filing documentation with the federal government. In retrospect, it’s a little amusing how nervous I was. I was a full time student; I kept my receipts, and received a sizable return. I recall a shopping trip to the mall, and a disapproving look from my father upon my return as I carried several bags into the house. He always said “Save. Save, because you never know what may happen.”

As I embark into my thirties, I reflect on a simpler time and if I had a choice, I would prefer to do a simple tax return vs. the complex return I filed in 2014. When I inputted my information I saw my sizable return dropped down to a much lower amount, lower than I expected. When I ponder on how much I would have saved had I started my savings plan a decade ago, it only gives me a migraine. As my husband and I decided what to do with our tax return this year, it made me curious as to what other individuals were planning for this tax season and here are a few responses:

“I will put my return in a high earning account. Make money off your own money is the best way to go.”

“Save 40% and place it in savings. Use the remaining to pay off any pending bills. Getting ahead just one month can create the financial cushion my family needs. ”

“I consider the tax return a blessing, and I paid for braces for my children.”

“I’m focused on home improvement this year, and preparing for upcoming hurricane season.”

“Personal. I work very hard for 365 Days and I save all year around. This comes once a year and I deserved it.”  

 “I didn’t receive a large return, but I paid off several bills and bought my daughter a graduation gift she deserved. I work hard for my family, and they’re entitled to my return as much as I am.”

“I set aside a portion of my return, and pay off any credit cards that have an interest free offer expiration approaching. That way, I prevent having to pay any additional interest, and lower my debt.”

“I have not received my tax return yet, but I will be saving a portion of it, and using the remaining funds for my summer vacation with my family. I save throughout the year, and I consider the Tax Refund a small portion of my savings plan.”

“Unfortunately this year we had to pay. Thankfully, we saved throughout the year so we didn’t experience a financial hardship.”

After hearing the last response it put things in perspective for me: Income Tax Returns can be considered a temporary relief to financial strain, the extra income to get ahead in monthly responsibilities, or an instant saving deposit. It important to remember that every financial situation is different. Every monthly expense sheet varies from household to household. There are several life events that can take a toll on your finances, and ultimately lead to long term financial commitments. Some are made with premeditated reasons, and others are due to the result of unexpected financial necessity. If you’re interested to starting your new saving pattern, consolidating debt, rebuilding your credit, take a look at Tropical Financial Credit Union services.

At Tropical Financial Credit Union, we understand that unexpected life events can occur and are willing to work with our members to achieve a positive resolution to the best of our abilities.

Happy Saving,

^Cari