Best advice for your tax refund

Best advice for your tax refund

My advice typically is to strategically plan for your tax obligation throughout the year, thus minimizing your refund at tax time (which is really your money that the government saved for you throughout the year without paying you any interest on it), but many clients like to have spring refund “windfall”.

So what is the best advice for how to spend that “windfall”?

The top advice from several articles are:

Pay Down Existing Debt

Build Your Emergency Fund

Pad your retirement savings


After those 3 consistent suggestions, the articles get creative with their advice. One even suggests taking $50 to buy a lottery ticket! Other suggestions include home improvements, student loans, HSA/FSA contributions, investing in college or training, vacations, high-ticket purchase, prepay your mortgage, buy life insurance, and the list goes on….

If you are anticipating a sizeable refund from your 2017 tax return, you may wish to talk with us. This may be the best time to start pre-planning for your 2018 taxes and the best use of your own $ through the year. We can also give you a bit of advice as to where to spend those refund dollars.

by Dan DeHoek, CPA | ABV | CFP®
Managing Member, DeHoek & Company, PLLC


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