Last year, more than 100 million Americans received an average tax refund of $2,869 deposited back in their bank accounts after filing their taxes.
As millions of Americans await reimbursement from Uncle Sam, Magnolia State Bank has highlighted six tips for making the most of their tax refund.
“File as soon as you can get your tax documents in order to receive your refund more quickly and, most importantly, to prevent fraudsters from claiming your refund before you do,” said Magnolia State Bank President Lillous Ann Shoemaker. “Your tax refund can position you to handle financial emergencies and give you a jumpstart on achieving your goals, whether it’s paying off credit card debt or saving for a down payment on the home of your dreams.”
Here are some tips to make the best use of tax refunds:
• Create a safety net. Too many people do not have enough money in savings to cover a $400 emergency. Your tax refund can be used for a dedicated emergency fund that will cover you in a crunch. Ideally, it should hold about three to six months of living expenses in case of sudden financial hardships, like losing your job or having to replace your car.
• Pay down debts. Dedicate some of your tax refund…