2017’s tax season is in full effect and for many people, tax refund checks and direct deposits are already coming in.
Workers in lower-income tax brackets usually end up with large refund amounts. Individuals in this earning bracket who claim multiple minor dependents can get back an amount that is as much as their yearly income total. However, this is also the time of year where people can make their biggest financial mistakes.
Black Enterprise Magazine recently published an informative article online, which discussed how to prevent making the gross financial mistakes that are commonly made during tax refund season.
“Have you ever gotten a tax refund or a lump sum of money, and months later felt like you had nothing to show for it? If this has happened to you, it’s OK to make mistakes,” wrote Ashley M. Fox, a Black Enterprise contributor.
“However, it’s not OK to repeat them,” Fox continued.
Fox’s article for Black Enterprise is titled Here Are 4 Smart Ways to Use Your Tax Refund. She has an extensive background in finance, including working as an analyst on Wall Street. A fair amount of useful advice is contained in Fox’s piece. A portion of her article reads as follows:
“Paying down debt is important, but how long are you going to defer your wealth just to pay down debt? While you are building a plan to pay everyone back, make sure you take care of YOU!! Depending on your income, age, and financial goals, use your tax refund to open a Roth IRA. Roth IRAs are a great way to help lower your taxes and increase your retirement savings. Roth IRAs also allow you to take advantage of the tax-deferred compounded growth. Just think: when you retire, you don’t want to live off less income, right? If you’d like to be better financially in the future, it is time to start planning for tomorrow, TODAY!” (BlackEnterprise.com)
To read Fox’s full Black Enterprise article, click the link listed at the source below.