It’s easy for us to think of this year’s tax refund as free money coming to us courtesy of Uncle Sam. However, the truth of the matter is that the check you receive is a return of your own hard earned money. And since you’re going to get your own money back, why not use it to get ahead of your financial goals?
In 2014, sixty-nine percent of those polled by American Consumer Credit Counseling indicated that they had used their tax refund to pay down debt and get ahead on monthly expenses, including rent, utilities, and car payments. In 2013, twenty-six percent indicated they would put their refund into savings, while forty-five percent said they would use it to pay down credit card debt. The National Retail Federation saw that forty-six percent of its 2014 survey respondents intended to cushion their emergency savings with their returns, with nearly six in 10 young adults between 18 and 24 putting their refunds into savings.
The results of these surveys are indicative of a growing, budget-friendly and money-savvy trend: Americans are opting out of tax-time splurging and are focusing on getting ahead. Here are a few easy ways to get yourself set up for success as tax season approaches:
- Take advantage of a Volunteer Income Tax Preparation Program. VITA programs offer free tax help to those who generally make $53,000 or less, persons with disabilities, the elderly, and limited English speakers. Qualified individuals can receive basic income tax return preparation assistance from IRS-certified volunteers. Also see below for free tax return sites in Boulder and Broomfield counties.
- Use Form 8888 to split your refund. Why rack up more debt on your credit card in an emergency when you can set aside savings to cover it interest-free? The IRS provides taxpayers with multiple avenues to receive and save their refunds. Take advantage of direct deposit to your checking account to pay off debts and automatically deposit a portion of your refund to your savings account. Families participating in the Personal Investment Enterprise (PIE) Program can use this refund to make a lump deposit up to $500 in order to reach their savings goal.
- Need more inspiration to save? Enter to win with SaveYourRefund. SaveYourRefund has 101 cash prizes, including 100 weekly prizes of $100 and one grand prize of $25,000.
- Take the America Saves Pledge to make a commitment to yourself to save. Get emails to keep yourself motivated and/or sign up for text message reminders to get tips and advice about your savings goals.
We know that making smart financial decisions isn’t always easy. So whether you’re just starting to look at ways to get ahead in 2015 or are already planning to put your refund towards your goals, remember that your tax refund doesn’t have to go to one place. When you get your hard earned money back, put a piece of it towards paying down debts AND save some for a rainy day. It really is that easy.
Tammy Greynolds works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at americasaves.org The Personal Investment Enterprise Program, a partnership between Foothills United Way and Boulder County Community Action Programs, provides tools that empower low-income individuals and families to save and build assets to strengthen their economic stability. To learn more about the program visit bouldercountypie.org. The first step in applying to the program is to attend an orientation meeting with Nino Gallo at Community Action Programs at Boulder County. Nino may be reached at 303-441-3998 or at ngallo@bouldercounty.org.
Free Tax Return Sites in Boulder and Broomfield Counties
1. SVVCU Longmont- 2050 Terry Street #101, Longmont, CO 80501 Tax preparation done free for low income families and individuals. Open from 1/31/15 – 4/18/15, Wed. 6 p.m. – 8:30 p.m.; Thurs. 6 p.m. – 8:30 p.m.; Sat. 8:30 a.m. – 1 p.m. Appointment not required. Languages: English
2. AARP Boulder West Senior Center – 909 Arapahoe Avenue, Boulder, CO 80302 Priority is given to senior citizens (50 yrs and older) and disabled persons. Open from 2/3/15 – 4/14/15, Tues., Thurs. 8:30-12 p.m. By appointment. Languages: English/Spanish Phone number: 303-441-3148
3. AARP Lafayette Library – 775 W. Baseline Road, Lafayette, CO 80026 Priority is given to senior citizens (50 yrs and older) and disabled persons. This site is open 2/3/15 – 4/14/15, Tues. 1 – 4 p.m. By appointment. Phone number: 303-665-5200 X3859
4. AARP Longmont Senior Center – 910 Longs Peak Avenue, Longmont, CO. 80501 Priority is given to senior citizens (50 yrs and older) and disabled persons. This site is open 2/3/15 – 4/9/15, Tues., Thurs. 9 – 1 p.m. By appointment. Languages: English/Spanish Phone Number: 303-774-4429
5. AARP Louisville Recreation Center – 900 Via Appia Way, Louisville, CO 80027 Priority is given to senior citizens (50 yrs and older) and disabled persons. This site is open 2/3/15 – 4/14/15, Tues., Fri. 1-3 p.m. By appointment at 1p.m., 2 p.m. and 3 p.m.
Also, in Erie at Erie Library on Wednesdays Feb. 26th, Mar. 5th and Mar. 12th. Phone number: 303-666-7400
6. University of Colorado at Boulder – 995 Regent Drive, Boulder, CO 80309 This site is open from 1/31/15 – 4/04/15 on the following days: Wed. 5 p.m. – 7 p.m., Sat. 9-12:30 p.m. Appointment not required. Languages: English/Spanish
7. AARP Broomfield Senior Center - 280 Lamar Street, Broomfield, CO 80020 This site is open from 2/6/15 – 4/10/15, Fri. 9:30-2:30. By appointment. Languages: English Phone number: 303-464-5526
Helpful Documents:
Download 201412_cfpb_tax-time-advance-checklist
Download Make the most of your tax refund
Download Saving with direct deposit or savings bonds
Other Resources:
Comments