It’s that time of year when IRS refunds are all the rage. Everyone wants to know where their IRS tax refund check is and just how much it’s going to be. By this time, most folks have already done all the paperwork and sent the forms into the IRS. It’s a lot of work and it’s a real pain to have to wait on limbo, not knowing where your check is.
Well wait no longer. The IRS has a free web–based Refund Status Tool that can tell you exactly how much your tax refund check is going to be and when you can expect to get it in the mail. Even if you filed your tax returns jointly, only one social security number is needed in order to get the information.
IRS Refund Planning
I know, you’re just waiting to get that money in your hot little hands, rush out to the nearest retail outlet and spend it all. And that’s exactly what most folks do–spend it all. Most folks don’t have the discipline to save money and so this withheld money from their paychecks is the only way they can save money for these big ticket purchases. It’s a sort of forced savings account.
But there is a better way to handle that IRS tax refund. That’s right, you could actually pay down some of that credit card debt. It’s not the most exciting thing you could do with the refund money, but it’s probably the smartest thing you could do. Do some simple calculations and see if paying off that debt now while avoiding another year’s worth of interest payments won’t put you ahead of the game.
Think of it this way – you’ll have more money to spend if you pay off debt with the refund check. Let’s say you have a credit card with about five–thousand dollars on it and a hefty interest rate. You could be looking at paying an additional $1,000.00 in interest over the next year if you carry that balance all year. If you take the IRS refund check and apply some or all of that to your credit card balance, that’s money ahead from the interest you won’t have to pay.
The information contained herein is not intended to be a source of legal advice or authority. Information in this article should not be considered or relied upon as legal advice, tax advice, or even financial advice. Always seek the professional advice of a legal counsel, attorney, financial planner, or Certified Public Accountant.