Breaking even is the goal. But if you find yourself receiving a refund this year, consider these ideas for putting it to work.
When it comes to federal income taxes, a small refund or getting nothing back means you (and your tax preparer) were precise and came close to achieving the desired outcome: to break even. If you end up with an unexpectedly large bill or a refund, however, that means you may want to reconsider your estimated taxes or how much you’re withholding from your paycheck. A qualified tax preparer can help you find tax strategies that could help you keep more of your money in your pocket – legally.
If you expect a refund because the government withheld too much of your money, don’t think of it as a windfall. We’re not denying the psychological effect of getting a springtime “bonus,” we’re just encouraging you to make sure your money is being used wisely. Consider investing in your life, well-being and financial future. Then remember to talk to your tax pro about making adjustments for next year.
If you do end up with a refund this year, consider these ideas for making the most of it.
Invest in your future
Invest in yourself
Invest in the world
Whatever you decide to do with your refund this year, avoid squandering the money and make the most of it. If you end up owing taxes, talk to your tax and financial advisors about ways you can pay the bill without disrupting your investment plan or depleting your savings. If you anticipate owing taxes again, you may also want to discuss investment and tax-saving strategies to reduce your liability next year and over the long term. These two professionals should be able to work together to address your specific situation and help you refine your tax strategies going forward.
Thank you for your trust in me,
Investing involves risk, and investors may incur a profit or a loss. All expressions of opinion reflect the judgment of Raymond James and are subject to change. There is no assurance that any of the forecasts mentioned will occur. Economic and market conditions are subject to change.
Material prepared by Raymond James for use by its advisors.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional. All expressions of opinion reflect the judgment of Raymond James & Associates, Inc., and are subject to change.
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