3 Tips for when the IRS Owes You

If you beat your goal of breaking even, consider these ideas for refund.

The main goal of doing your federal income taxes is coming out even or even getting a small refund back. As a tax preparer, breaking even is going to be the finish line. It is not impossible to receive an unexpectedly large refund. If this takes place, examine your estimated taxes or the amount being held from your paycheck. Think about the help that qualified tax preparation can help you. They are great for strategizing and getting more money in your pocket.

Look at your refund less as a springtime bonus but more like using your money wisely. Things to think about are, considering investments in your life, well-being, and financial future. Talk to your tax pro about adjustments for the upcoming year.

Invest in your future:

  • Save for retirement
  • Pay down debt
  • Build up your emergency fund
  • Fortify your portfolio

Invest in yourself:

  • Save for higher education
  • Renovate your home
  • Start an exercise routine
  • Start a “fun” fund

Invest in the world:

  • Become more generous
  • Go green
  • Grow your garden

After reaching your goal of getting a refund, the next goal to set is making the most of your refund. If you owe taxes, talk to a professional like your financial advisor. They can help you make sure you can pay without departing your savings and taking from prior investments. They can also guide you into tax-saving strategies to reduce your chance of owing next year. This will all help refine your tax strategies down the road.

Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional.