Are you expecting a refund this year? That is good. How are you going to spend it? We suggest that it that you use it for some purpose that helps your lower next year taxes. Ask your CPA Kissimmee, and they will tell you the same. According to the IRS, every year over 85 million people receive their refunds, which are worth $3,000 on an average. That is quite a significant amount, and you should use it well. Here is what we recommend.
Learn a lesson
A CPA in Kissimmee will ask; So you think that your refund is a great idea? Actually, no. A refund is the amount which the government pays back to you if they owe you money. When does this happen? When you pay more taxes than necessary. And what is bad about this? The fact that government does not pay you any interest on the loan they take from you.
Now you see why we do not like a refund so much. You have it this year, but try to avoid one next year. And put this one to good use, which is what we are going to talk about next.
Pay your estimated taxes
You must be paying your estimated taxes every year. This year do it with your refund amount. When tax time comes next, you will be paying less. Just make sure that you are not overpaying any amount. Otherwise you will have a refund next year, as well, and once again, the government will not give you any interest on it.
Increase your retirement contributions
The CPA in Kissimmee should also ask; Want a secure retirement? Everyone does, and the only way to assure is this to have huge savings. How much money have you been contributing to your retirement funds? Now that you have an extra amount with you, increase this contribution. There is another benefit. You will be able to get a larger deduction next year.
Just keep one thing in mind; retirement accounts have a limit to the maximum contribution.
Save for educational expenses
Are your kids grown or still in elementary school? One day, they will join colleges and you will have to pay for their tuition fees. Start saving for this now with your refund.
Invest the amount
Investing your return amount is a great idea. It may be $3,000 right now, but in the next ten year, it can grow to a value much bigger than this. Invest it and you would have accumulated a significant amount of savings for the time to come.
Donate to charity
Charitable donations are another thing that can decrease your taxes. Why not use some of your refund for this? You will be paying lower amounts in taxes next year. Ask your CPA Kissimmee more about organizations to which you can donate. These must hold 501c3 status.
Take some time off
Too much work? Relax yourself and take a trip to somewhere. Maybe you could go to the beach or on a hiking trip. A day out will relieve you off your stress and make you feel better.
If you need more information about our Kissimmee accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are not CPA’s. CPA services are provided by third party provider.)