Tag: Www.taxreturnco.com.au

Here’s why that big tax refund isn’t great news for you

A big tax refund may feel like free money, but it is not. As of March 17, the Internal Earnings Service has issued 62.5 million refunds, averaging out to $2,931. The federal government agency expects to receive more than 153 million tax profits this season. Don’t rejoice that massive tax refund  9:19 AM ET Wed, 29 March 2017 | 00:58

Many tax refund recipients are putting that money to work. In regards to a third of taxpayers getting a refund expect to save or make investments the money, while almost three in 10 can pay down debt, relating to Bankrate.com.

Here’s the bad reports:

In case the IRS supplies you with a huge check this spring, this means you’ve likely overpaid on fees over summer and winter. A large tax refund from the IRS may seem like an benefit, but it is not the best or most reliable use of your cash flow. You’re quite simply supplying the IRS an interest-free loan.

Know your withholding

If you’re a worker, your employer provided you a Form W-4 when you were appointed, which you can adjust to ensure the right amount of income tax is withheld from your salary. On the proper execution, you’ll make take note of of your partner, your dependents as well as your filing status; they are your “personal allowances.” The greater allowances you have, the less tax refund will be withheld.

Some people read the form and think, ‘I’m wedded and also have three kids. They end up with five allowances and owe considerable taxes by the end of the entire year.

The IRS has a calculator to help you figure out the right withholding.

Overtaxed or undertaxed

The safest course to avoid owing a large amount at tax time is to complete your W-4 … Read the rest

How to use your tax return money wisely

 

fotolia_61457071_subscription_monthly_m-770x494

It’s excellent news to hear when you’re due a tax rebate or return. It might be because you’ve paid too much tax for the financial year- this is often the case in the UK. It may also be because you’re on a Working Holiday Visa and are due to leave your host country.

However it’s all too tempting to just blow the money in one go. We take a look at the wise ways in using that extra lump sum

Put the tax refund money into a savings account

Financial experts suggest having around 6-8 months’ worth of your annual salary in a savings account or similar for ‘the rainy days’, not limited to unexpected dismissal or redundancy, change in financial circumstances or loss of property.

It’s advisable to start one if you don’t already have one and gradually build it up. Your tax refund money will increase the account substantially. Visit this site for more information : Www.taxreturnco.com.au

Buy the essential appliances your house needs

Has your household been in need of a new dishwasher, washing machine, cooker or other essential appliance or goods? You can use your tax return money to pay part or all for a new model saving you many months of saving up. You could also use the money to get your car maintained whether it needs to or not- it will save you a massive bill in the long run if you use part or all your tax refund money.

Pay off essential bills or outstanding payments

Your tax return money would present an excellent opportunity to pay off some outstanding loans or bills, whether it’s a student loan, a mortgage, credit card bill or other. This will save months of repayments and will increase your credit score.

Start a business

Nowadays it … Read the rest