When I spoke to Bob Meighan, TurboTax’s Vice President and CPA, in November we spoke about how couples can optimize their tax filings. One interesting point Bob shared was that the average refund last year was around $2,700. For many families, that’s a big enough amount that they can make some progress on their family’s financial goals.
Checking Your Tax Rebate Status
Though most of the time your tax rebate comes according to schedule, if you haven’t received your tax return when you expected, just go to the IRS’ site and enter your information. If you prefer to speak to someone on the phone, the number is 1-(800) 829-1040.
If you have a smart phone, there’s actually an app called IRS2Go to help you check the status of your tax rebate. the great news is that the app is free. The app also allows you to sign up to receive tax tips from the IRS to your inbox.
Put Your Rebate to Good Use
No matter how big or small your refund is there are several ways you can use it to put your family’s finances to good use.
Start or build your emergency fund. Based the amount on your family’s personal savings needs. Even if it’s a starter emergency fund, it’s a cushion for you in case something happens like a car breaking down. For your emergency funds please keep it in a high interest savings account where it’s possible to access it in emergencies without being tempted to spend it.
Pay down your debt. If you have an emergency fund ready to go, then look at putting your tax refund towards paying down your debt. Paying down your debt can improve yourmonthly cash flow.