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People Are Saving Their Tax Refunds And Here’s Why You Should Do It Too!

Folks are no longer spending their money on shopping or going to extended travel tours. They are, however, putting their dough into their savings funds.

According to new research, which polled 2,800 individuals, the majority of Americans are choosing to save the cash that they are being refunded. Meanwhile, people who intended to settle their debts came as a runner up. It was also found that only 1 out of 10 people planned to use the money for their daily expenses.

Why should you save your tax refund?

That tax refund you just got could be one of the fattest checks you’ve received all year, so why not try saving some or all of it. Placing that money into a savings account can help you prep for unexpected expenses in the near future. Also, it can help you work towards long-term goals like acquiring a property or paying for university.

It can be hard for many to make ends meet through the year, so regularly saving can be unrealistic. The cash from your tax refund could assist you in building or replenishing your rainy day fund. Depositing money for emergency situations may benefit you in covering some of the usual unforeseen expenses people encounter. With no savings, even a minor financial emergency could leave a lasting impact on your life.

How can you save money fast?

Start filing electronically

The quickest way to get your tax refund is to file taxes electronically using e-file. If you use this method, you will likely collect your tax refund in just 21 days or less. Filing your taxes via mail usually leads to a longer waiting time of up to six weeks before you can get your hands on your tax refund. Also, if you file your taxes electronically, you’ll be much more protected from tax fraud since you’re not conveying sensitive data through the mail.

If you need help in filing your taxes and meeting the qualifications, there are IRS-certified enlistees at a Volunteer Income Tax Assistance (VITA) or a Tax Counseling for the Elderly (TCE) that offer tax preparation aid for free. To find a VITA site near you, you can use the IRS locator tool.

Make use of direct deposits

Getting your tax return as a direct deposit is quicker than receiving a paper check through the mail. It also guarantees that the money is securely and automatically saved.

Deposit some (or all) of your tax refund into a savings account

The IRS permits depositing refunds into up to three separate accounts. You can choose among savings accounts, checking accounts, retirement accounts, U.S. Savings Bonds, or mutual funds. If you register electronically, you can even acquire a savings bond while you’re filing your tax return.

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