Tips to make the most of your tax refund

(InvestigateTV) — The Internal Revenue Service (IRS) reported that a typical tax refund is processed within 21 days, giving taxpayers plenty of time to make plans for the money.

Debt relief attorney Leslie Tayne advised having a plan before your tax refund arrives. Review your budget and decide how to use the extra cash, whether to pay down high-interest debt or get ahead on bills.

“Some people can consider paying an extra payment to their mortgage or other outstanding loans which will reduce significantly the actual interest your ultimately pay on those loans,” Tayne said. “In addition, you can still put your money into a high interest CD or a savings account.”

Tayne noted that while interest rates are decreasing, some savings accounts still offer substantial returns. Depositing your refund into one of these accounts could help it grow over time.

She also suggested using the money to build an emergency savings fund, providing a financial cushion for unexpected expenses like car repairs or medical bills.

“Another option with your tax refund is a donation,” she suggested. “You could donate to a local charity or a charity of your favorite kind and that in the end will be a tax write off for you the following year on your tax return and of course it’s giving back to the community.”

Tayne said this is something to consider if the money isn’t needed right away or if it’s a larger amount than expected.

A donation could also help lead to another refund next year.

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