April 18 is the deadline to file your tax return this year. If you claim your allowable deductions, you could get money back. This is one way God can meet a financial need, so be smart with your tax refund.
Philippians 4:19 has an important Bible promise for Christians: “My God will supply all your needs according to His riches in glory in Christ Jesus.” Do YOU have a financial need? Tax refund or not, God will provide for you.
If you’re blessed with a tax refund this year, don’t waste it. Thank the Lord for His provision. Then consider how the extra money could help you or someone else.
Here are a few ideas.
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Make the Most of Your Refund
Now that you’re getting money back from the government, it’s time to decide what to do with it. Chuck Bentley of Crown Financial Ministries urges you to put that money to good use.
Here are seven ways to be smart with your tax refund.
📋 DISCLAIMER – This content is for general information only. It is not intended to replace the advice of a qualified tax advisor, attorney, or financial advisor.
1. Pay Your Debts
Use your tax refund to pay off a debt or pay down a credit balance. This can improve your credit score and, in turn, help you qualify for a lower-interest home or auto loan.
If you’re in the market for a new home, ask your lender about a lock and float-down. An interest rate lock protects you if rates go higher, while a float-down gives you a lower rate if rates retreat after a lock is set.
2. Build Your Savings
Do you have emergency funds in place? Your tax refund is a good way to start or build emergency savings. When a health expense, home repair, or car problem hits, you’ll be glad you have some money saved to get through it.
3. Think of the Kids
Do you have children at home – tiny, toddler, or teen? How about grandkids? Use your tax refund to boost their education fund. If you haven’t opened a college fund yet, now is a good time to start. (For more on 529 plans, click here.)
4. Plan for Retirement
Some Americans transfer their tax refund to an individual retirement account (IRA). This is a good way to be smart with your refund, and your contribution may be tax-deductible next year.
Already retired? What do you do with your free time? Keys to a Successful Retirement has tips for how to stay productive in your retirement years. Check it out!
5. Donate to Charity
Donate all or part of your tax refund to your favorite charity, and help somebody in need. While your donation can be a tax deduction next year (good news for you), it’s a tangible way to help someone else right now.
Wondering who to give to? Your community is an excellent choice, especially in difficult economic times. Consumer Reports has a guide to doing good that can help you put your money (and skills) to use.
📖 READ – 10 Good Ways to Give Back, Even When Times are Hard
6. Go 50/50
If you can’t decide whether to save your tax refund or donate it to charity, meet two needs at once by going 50/50. Keep half of your refund for savings or personal needs, and donate the rest to your favorite charity.
7. Treat Yourself
If you have little or no debt and an emergency fund, you have more leeway with your tax refund. Find something fun to do with the extra money. Pamper yourself, take a trip, or buy something on your wish list. The good choices you made last year make today’s little treats possible.
Wrapping It Up
Three-quarters of Americans get a tax refund each year. If God blesses YOU this way, don’t waste it. Thank Him for His provision, and be smart with your tax refund. Take some time to think about how you’ll use the extra money, and let the tips on this page inspire you. ◻️
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- 28 Budgeting Tools That Can Help You Manage Your Money
Now It’s Your Turn
Thank you for reading my post. Now it’s YOUR turn to chime in. What will you do with your tax refund this year? Will you save the extra money, spend it, or make a donation to charity?
Let’s fill the comments with friendly conversation. Scroll down to leave a reply, ask a question, or just say hello. And if you liked this post, please give it a share.
Blessings, Annette
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We have a refund coming, and we plan to spend it on appliances for our new home. How will you spend YOUR tax refund? Leave a comment and let us know.
Don’t forget that if your home is energy-efficient, you may be eligible for a tax refund or credit.
Good to know. Thanks for the reminder!