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Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Saving your refund in a 529 plan can help your children or grandchildren afford a higher education and possibly gain a deduction on your state income taxes. Create an emergency fund. Send it to savings. Pay off debt. Fund your retirement. Look to the future. Seed the college fund. Invest in the stock market.
You can easily access the funds if you need them Ideally, youd leave your tax return in your high-yield savings account for as long as possible so it accrues the most interest. But sometimes you need to access cash fast - such as during one of those emergencies you created your emergency fund for.
But they really are part of your earnings, the experts said, and they advise you to plan ingly. If you were going to spend all your raise, then thats probably what you should do with your tax refund. If you were going to put some more in your 401(k) or some kind of savings, then thats what you should do.
You can give your financial situation a big boost if you use your tax refund to pay down high-interest debt from credit cards, a payday loan, a car title loan, medical bills or private student loans.
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Your tax return may show youre due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, or a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.
Saving your refund in a 529 plan can help your children or grandchildren afford a higher education and possibly gain a deduction on your state income taxes. Create an emergency fund. Send it to savings. Pay off debt. Fund your retirement. Look to the future. Seed the college fund. Invest in the stock market.
As long as you have $1,000 in a starter emergency fund, you should use your tax refund to pay down your debt. But if youre out of debt and have 36 months of expenses saved for your fully funded emergency fund, use our investment calculator to see how your tax refund can do great things for your retirement account.

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