Instead of spending your tax refund on some extra indulgences, you want to use it to help and reward your children. You do a lot for them throughout the year, everything from organizing parties to taking trips to the museum. They also do just as much for you. Your heart always melts when they hand you creative birthday gifts, and you leap for joy every time your children give you a big hug.
Therefore, you don’t mind investing your hard earned money back into your kids. You just need ideas on ways to show them your love, support, and appreciation.
We have a few suggestions on ways to use your tax refund check on your children:
Start a College Fund
The best way to show your support for them is to invest in their future. Use your refund check as the starting point for your child’s college fund. Make it an annual thing: every tax season contribute some, half, or all of your refund into your son or daughter’s college savings account.
Combine the refund check amount with regular paycheck contributions to it.
Invest in School Supplies
Buy school supplies as a way to add an immediate contribution to your children’s education. Stock up on the basics by buying bulk items from Sam’s Club, Costco, Amazon, and Target. Get notebooks, pens, and pencils from these stores.
Additionally, use some of Groupon’s discount codes to buy premium and special school supplies. For example, use a Things Remembered coupon to purchase personalized school supplies, like backpacks, water bottles, and journals.
Maximize your clothing haul by shopping for children, teens, and young adults at thrift stores and secondhand shops. Also shop at stores that sell discounted name brand clothing, such as Ross Dress for Less, TJ Maxx, Famous Footwear, and Nordstrom Rack.
Focus your shopping on adding some basic items to their wardrobe. Avoid fad items, like Disney character t-shirts or glitter jeans, because your child will eventually outgrow it. Classic pieces (e.g t-shirts, jeans, cardigans, etc.) always stay in style.
Go on a Family Vacation
Use the refund money to take the entire family on a vacation. You may not be able to go anywhere luxurious, but the extra money should afford a trip to a waterpark, amusement park, or camping trip. Make a plan to execute this trip in the summer, when your children will have plenty of time to enjoy themselves. Use the few months in between when you receive your tax refund and the start of summer to work towards adding additional vacation funding.
Instead of spending the refund money on one big thing, divide it among small daily treats. Spend a little extra on groceries, so that you can cook your children delicious and healthy meals. Also let them satisfy their sweet tooth with a small portion of their favorite treats.
Go on more trips to the movies, or buy some toys and games to play together. Stretch the money so that you can add a few extra fun activities for weeks.
Adopt a Pet
Use the money to pay for all the pet fees, food, and toys for the animal. Make sure you only adopt a pet after your children have shown enough responsibility to handle taking care of it. Put them through a long trial period before making the commitment to add a new addition to your family.
Start Saving for a New Home
Invest the entire tax refund into a savings account for a new home. Get your children involved by letting them look at homes in magazines, and then ask them to describe their dream living space. Let them know that you won’t be getting the exact house of their dreams, but close to it.
During the tax period there dramatic increases in the popularity of tax refund anticipation loans. The tax refund anticipation loans provide ways for taxpayers to access to funds rather than wait until the Internal Revenue authority processes tax refunds. They are short term loans that are processed against an anticipation of a tax refund. Many people are able t take advantage of the refund anticipation loans as an easier and faster way of getting cash right away. The loans are a good blessing to many people regardless of their circumstances are they are able to offer a source of cash when they are in need while waiting for the tax refunds. But at the same time, the loans have their disadvantages as they can turn out t be very expensive. Therefore, according to your circumstances refund anticipation loans can be a blessing and also bad. The following are some of the pros and cons of tax refund anticipation loans
Tax refund anticipation loans can sometimes come in handy. When you are facing a cash flow challenge and in need of cash immediately, the tax refund anticipation loan can bridge the gap. Depending on your cash flow needs, sometimes you can get cash check that can be able to meet your cash flow needs or even be able to cover a significant part of the problem
Refund anticipation loans at the same time are processed quicker than any other conversational loan. Normally after applying for a tax refund anticipation loan, it takes a minimum of 24 hours for the loan to be approved and then the funds will be seen to your bank account within 48 hours of approval. Hence, in comparison with conventional loans which take weeks to be approved, the loan can take a short period.
Refund anticipation loans do not have upfront costs and other income tax return costs. Only processing fees that are deducted from the loan hence the loan is cheaper.
The refund anticipation loan attached fees are generally very high. In provision of the loan, a third party is always involved hence increasing the interest costs of the loan. Even if the loans are provided by the tax preparers, the loans actually come from commercial lending organizations that provide it in normal interest rates. It is therefore not advisable to take the loan when you don’t need it as it will turn out to be very costly.
You will finally be responsible for the total value of the loan. In case the lending institution does not receive the anticipated tax refund from the internal Revenue Service, the principal and interest of the loan will be transferred to you.
The tax refund anticipation loan has been able to help many people to gain access to a quick and less-costly cash that can help in meeting personal and business cash flow challenges. But at the same time its interest rates are high. For more information on tax refund anticipation loans visit taxreturn247.com.au
The statute of limitations for tax returns provides a time frame within which the IRS can audit the responses received from a given taxpayer. Once the time frame expires, the IRS cannot conduct a review of the tax return and therefore, if the return was erroneous, no liability can arise. The time limitation affects both the taxpayer and the tax collector. This, therefore, means that the taxpayer can also not follow up on an unclaimed tax refund beyond the statute of limitations.
Below are the various statutes of limitations that affect tax returns:
General Statute of Limitation
In general, tax returns can only be audited for up to three years after such a return is filed or after the deadline for filing the return, whichever date falls later. This means that if a taxpayer files before the April tax deadline, the statute of limitation will lapse 3 years after the April deadline date.
On the other hand, if the taxpayer files for an extension or files late, the statute of limitation will lapse 3 years after the date of filing.
If the IRS has evidence to show that a taxpayer may have understated his income for a given year by more than 25%, the statute of limitations is increased to 6 years.
In such a case, the IRS can audit returns 6 years after they are filed or 6 years after the tax deadline for the year that the tax returns were filed – whichever comes later.
In Case of Fraud
In case the IRS suspects that there was wilful tax fraud by a taxpayer, then they can audit tax returns up to an indefinite time. However, the burden of proof lies with the IRS to show sufficient reason to suspect fraud.
If a taxpayer failed to file a tax return in a given year, then the IRS or state tax authorities will have no statute of limitation and can, therefore, audit such a taxpayer with no time limitations. It is, therefore, advisable to file a late return, so as to avoid giving the IRS this unlimited time frame.
In the case of a late tax return, the regular statute of limitation will kick off as soon as the late return is filed. This means that in general, the statute of limitation will lapse 3 years after the late return is filed.
In the case of a criminal investigation, the IRS has a statute of limitation of 6 years from the time the taxpayer files a return.
The statute of limitation is suspended as soon as a taxpayer successfully files and is granted bankruptcy.
Nobody likes waiting for the IRS to change their rules. Fortunately, you do not have to. It’s entirely possible to file easy tax returns – all you have to do is know whom to file them with. You can even start a return for free and only pay once you’ve gotten to the end of the process
Taxreturn247.com.au for years have helped businesses and individuals Nationwide, with their delinquent IRS & State tax problems.
When it comes to tax returns, the U.S. government stays current. Although this is debatable in regard to other matters, it’s true in this sense.
Once upon a time, after filing your tax returns, you had to wait to receive your money through snail mail – a.k.a. USPS. God knows we love our packages, postcards and holiday mail, but, when it comes to receiving our hard-earned money, services rendered by the government’s postal service simply don’t cut it. We want our money now. We want it today. And thanks to the direct deposit service offered by the IRS, we can receive our tax refund sooner rather than later.
After your tax return is submitted, it takes 21 days or less for your tax returns to be processed. “Processed” is the keyword here because people often expect to receive their money in 21 days or less.
These steps are easy, too. They simply involve supplying the IRS with a voided check and bank account number(s) before filing your refund. In addition to being easy, there are also some advantages to setting up direct deposit with the IRS. The first is…
Speedy Delivery: Actually 3 Weeks or Less
In addition to being processed in 3 weeks or less, you can actually receive your returns in this amount of time with direct deposit.
Unlike regular mail, direct deposit is lightning fast. After the funds are accepted by the IRS, the IRS doesn’t have to transfer your funds onto a paper check, package the check, stamp the envelope and send it. Funds are transferred with a click of a button to one or more bank accounts of your choice (see below).
With direct deposit, you don’t have to wait eagerly by your mailbox for that money you worked your behind off for last year. You just have to wait for that glorious notification on your smartphone: “Deposit Received by IRS.” Your smartphone’s set up to your bank account, right?
Split Your Return Between Multiple Accounts
Whether you’re e-filing or filing by hand, this process is easy. If you’re e-filing, the software or online service you’re using will simply ask you if you want to split your direct deposit between multiple accounts. After selecting yes, it’s just a matter of filling out the fields. If you’re filing long hand with paper forms, the IRS conveniently supplies the necessary document to allocate funds accordingly. This document, called Form 8888, allows you to deposit funds into 2-3 banks accounts. You can also purchase U.S. Series saving bonds with a portion of your refund and allocate the rest to various accounts.
The choice is yours and the options are endless!
Buy U.S. Series Saving Bonds and Deposit into Multiple Accounts
In 2012, 54,000 financially savvy U.S. taxpayers took advantage of the government’s savings bond option. More than $21.5 million was invested in these bonds and they are proven to put money from your tax refund to good use. According to the IRS, these bonds are “low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.”
How does this relate to direct deposit? Well, you’re allowed to invest up to $5,000 of your tax refund in bonds. If your refund is greater than this and you want to invest the maximum amount, you can use direct deposit to allocate your remaining funds to one or more accounts. If your refund is less than $5,000, that’s okay! You can still invest a portion of your refund in bonds and use direct deposit to place money in your preferred spending/saving accounts. For more information visit www.taxreturn247.com.au today.
Each year, over a million tax-paying citizens have had identity thieves steal their tax refunds. Unfortunately, this number is growing. If fact, the number of identity theft cases that were tax related was reported in to have increased since 2008 by 650%.Visit my latest blog posted at http://www.1031xchanges.com/5-smart-ways-to-use-your-tax-refund/
Fortunately, the Internal Revenue Service labels refund fraud through identity theft as a top priority. To combat the problem, additional resources have been dedicated to deal with the increasing problem. But, there are also precautions the tax payer can take as an effort to avoid this type of theft.
Are you tired of getting paltry tax refund checks year in and year out? Or, do you owe Uncle Sam every year? Have you heard in the news every other day that some rich senator, young tech media mogul, large corporation or oil billionaire paid little to no taxes? There is a way to get complex tax issues distilled into easy to understand strategies you can quickly and easily use, so you can get a bigger tax refund.
How are identity thieves accomplishing identity theft through tax refunds? Typically speaking, the thief will obtain a victim’s information. Then this thief will file a false tax return, using the victim’s name. They will load the refund onto a prepaid debit card and then vanish with the funds. In order to avoid this, ensure that your computer’s malware and antivirus software protection is up to date. Along with this, be certain that your online tax preparation software URL begins with “https” rather than “http”. A secure connection is indicated by the ‘s’.
Another popular method for stealing identities is for a thief to act as a legitimate, tax preparing professional, or as a company which assists people in settling back taxes. This is generally done through virtual “storefronts” on the Internet. But, rather that helping a person, the thief will make off with personal information or a taxpayer’s refund. In many situations and times, tax professionals are greatly advisable, especially when a person needs support with tax relief. Just be certain that you are using a reputable company when seeking assistance.
When tax time begins, be safe with mail that has sensitive information. Shred it before throwing it away, and be sure you do not throw away papers with sensitive information on it or important warnings. Should you be notified of a tax return you did not file, contact the IRS immediately. Also, remember that the IRS does not contact people through email or via social networks, so be wary of notices received on these sites that claim to be with the IRS. One last advisable step is to order your free annual credit report to be sure that no one has attempted to open a new account using your name.
Knowing the common methods thieves use helps you to protect yourself (and your tax refund). The goal here is getting your refund before the thieves do. Experts agree that filing early is the number one safeguard. Although it may be too late to follow this advice this year, keep it in mind for the next. For more information visit this website today.
Getting a tax refund is like receiving a slightly unexpected gift. You usually know when you’re going to get one, but you won’t likely know the exact amount until it has been computed. When you do receive your check (or direct deposit, depending on the option you select) it can be tempting to run out right away and spend it on something fun for yourself. Instead of selecting this option, wait a bit and use it one of these strategic ways.
Pay Off Your Debt
Paying off debts isn’t exciting, but it’s a really solid way to use your funds. Debt just continues to build on itself, and carrying it has a negative impact on your overall credit score. A particularly hefty check from the government can have a big impact, even if you have substantial debt.
Jump Start Your Savings
Everyone needs a rainy day fund. If you’re looking at a fairly substantial amount of cash from your tax returns and you have little savings, put it in there. You’ll feel more secure throughout the year knowing that you’re prepared if something unexpected required a spike in spending. Similarly, consider putting a bit into your long-term savings. If you are finding in the short-term, having yourself prepared for the longer term can be a very positive change.
Make An Investment
Purchasing stock or even real estate can also be a good way to use the funds. Just be careful to do your research beforehand. Don’t get over invested in real estate, especially if you have no good way to shoulder continuous payments on it after your initial check runs out. Stocks are less hazardous, but they can be exceptionally volatile. Talk with your financial planner before making any decisions here.
Start An Education Fund
College is expensive, but it’s a worthwhile investment for virtually all careers. Use your tax returns to start saving for tuition for your child, or start a fund for yourself. Everyone benefits from education, but justifying the expense isn’t easy. After a few years of saved tax refund checks, you may be able to pay tuition outright if you choose an inexpensive state school.
Buy A Bond
The government makes it easy to buy a bond with your check, and for good reason: you’re putting your money right back into government initiatives. Buying bonds is generally safe and provides a decent return on investment, especially considering how little risk is involved.
Good coaches know that injuries happen and at times they can lose their best players for weeks and months at a time. If they don’t have strong players waiting on the bench then the entire season could be a waste. Sure they could trade those talented players and make more money for the team and owner, but if they really want to compete and succeed through the entire season they better have a strong bench.
Any of these will help you utilize your tax refund wisely, rather than squandering it within days of receiving it. Remember that investments are something that will mature over time, and should probably not be prioritized above paying off debts. If you’re uncertain, contact your financial advisor for recommendations based on your unique financial situation and the particular details of your refund. For more information visit www.taxreturn247.com.au today.