Each tax season, households making less than $52,000 claim $100 billion in federal tax refunds. If you're like us, that tax refund is the largest check you will receive all year. This windfall provides the perfect opportunity to start or grow an emergency fund, college fund, save for a large purchase or whatever your savings goal is. Many people view tax refunds as unplanned bonuses. They see the money as a gift to use for splurges or treats, but a tax refund provides the opportunity to improve your financial situation.
Tips to Get the Most Value from Your Tax Refund
- Have your taxes prepared for free. If you make less than $54,000, you can get free tax help from an IRS-certified tax preparer and may be eligible for valuable tax credits for working families. See this list for what to take to the tax site: Download Tax help and what to bring to tax site-Bilingual
Free tax sites in Boulder and Broomfield Counties:
For additional questions regarding tax preparation sites and tax credits visit: 211 or call 211 from your phone.
- AARP – Boulder West Senior Center, 909 Arapahoe Avenue, Boulder, CO 80302. Open 2/6/2018 - 4/12/2018, Tuesdays and Thursdays 8:30 AM to 11:00 AM. By appointment only. Call 720-475-6639 or on-line at https://cotaxaide.org/ta . English and Spanish language available.
- AARP – Broomfield Senior Center, 280 Lamar Street, Broomfield, CO 80020. Open 2/9/18 - 4/13/18, Fridays 9:30 AM-2:30 PM, By appointment only. Call 303-464-5526, Mon-Fri, 8:00 AM-5:00 PM
- AARP, Lafayette Library, 775 W. Baseline Road, Lafayette, CO 80026. Open 2/7/18 - 4/11/18, Wednesdays 10:00 AM-5:00 PM, By appointment only. Call 303-665-5200 or on-line at https://cotaxaide.org/ta
- AARP, Longmont Senior Center, 910 Longs Peak Avenue, Longmont, CO 80501. Open 2/1/18 - 4/12/18, Tuesdays and Thursdays 9:00 AM – 1:00 PM, By appointment only. Call 303-651-8411 or on-line at https://cotaxaide.org/ta.English and Spanish language available.
- AARP, Erie Community Library, 400 Powers Street Erie, CO 80516. Open 2/9/18 – 4/13/18, Wednesdays 1:00 PM-4:00 PM, By appointment only. Call 888-861-7323.
- Longmont VITA, 2050 Terry Street, Ste. 101, Longmont, CO 80501. Open 2/1/18 - 4/14/18, Wednesday and Thursdays 6:00 PM-8:30 PM and Saturdays 9:00 AM-1:00 PM. No appointment required. E-mail for questions: [email protected] English and Spanish language available.
- VITA, University of Colorado at Boulder, 995 Regent Drive, Leeds School of Business, Koelbel Building-Room 375, Boulder, CO 80309. Open 2/3/18 - 4/7/18, Wednesdays 5:00-7:00 PM, Saturdays 9:00 AM – 1:00 PM, No appointment required. Note: First come first served basis, we recommend arriving at 5:00pm or 9:00AM. Taxpayers arriving late might be rescheduled to another day. Hours of operation may change due to adverse weather conditions. If weather is bad call 303-492-6654 for more information.
If you do not qualify for VITA/TCE services, or for some some reason can’t use VITA/TCE services, you can use MyFreeTaxes, an online service that lets you prepare your own taxes for free if your income is less than $66,000, with telephone support from VITA volunteers if you have questions. Phone and Live Chat support is available from 10am to 10pm ET, Monday through Friday, and Noon to 9pm ET on Saturdays.
- Pay down your debt. Use your refund for some much needed debt relief. Pay off your credit card balance. If you have an outstanding balance on more than one credit card, try to pay off the smaller, high-interest rate balances first. That will free up more funds to put toward larger balances. Alternatively, you can apply your refund toward other debts, like a car loan or a home equity loan.
- Save for a rainy day. Why not give yourself an even bigger return on your tax refund by putting the money into a savings account, CD, retirement fund, or purchasing a tax time savings bond? Your tax refund will continue to grow if you put it into savings or invest the money. It's always helpful to have a savings account to draw from when a major car repair bill, medical emergency or other unexpected expense comes along. That way, you don't have to borrow money and add to your debt-load.
- Consider your financial goals. Trying to save for a house or car down payment? Hope to contribute to your child's college tuition? Consider applying your tax refund toward these goals. If you don't yet have a set of short-term and long-term financial goals, put one together. You'll be more conscientious about how you spend your refund or any other extra money that comes your way.
Your hard-earned tax refund is a great opportunity to build up your savings and also have the chance to win cash prizes through Save Your Refund.
Commit to save a portion of your tax refund and share your savings goal with us and you could win one of 102 prizes up to $10,000. But you can't win unless you save, so make a commitment to yourself today. By making this commitment early, you'll be much more likely to save later. Enter Save Your Refund now.
Remember, you work hard for your money and you deserve to enjoy a healthy financial lifestyle. Put some thought into how you use your tax refund. Making smart financial decisions is not always easy, but it will definitely benefit you and your family over the long term.
Helpful websites at tax time:
https://bettermoneyhabits.bankofamerica.com/en/taxes-income
http://www.eitcoutreach.org/learn/tax-credits/earned-income-tax-credit/eligibility/
http://www.eitcoutreach.org/help/ EITC estimator
ABOUT THE PERSONAL INVESTMENT ENTERPRISE (PIE) PROGRAM
The Personal Investment Enterprise (PIE) program is a local savings program provided through Community Action Programs of Boulder County and Foothills United Way. The program is designed for low-income families to enroll in financial literacy classes and save through a matched saving account at a rate of 4 to 1. 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 [email protected] more information on the PIE program visit http://www.bouldercounty.org/family/financial/pages/pie.aspx
About America Saves America Saves is a campaign managed by the nonprofit Consumer Federation of America that uses the principles of behavioral economics and social marketing to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. America Saves encourages individuals and families to take the America Saves pledge and organizations to promote savings year-round and during America Saves Week.
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