Certified Public Accountants1215 Herr Lane, Suite 210 - Louisville, KY 40222502-896-2999

How to Save Money on Taxes Tip 2

So you've missed your projections and you're getting a nice check back from the Internal Revenue Service and you've accepted the fact that you just gave the government an interest free loan. What next?

Our advice is to make your refund count. Don't squander it. If you are among the folks with a low income, this refund check could be the biggest wad of money you will see all year and most people go out a blow it.

A good set of advice from the AICPA, the American Institute of CPAs recommends that you prioritize your needs and apply that cash according to those needs. They recommend this list of priorities, but you can adjust it to fit your own ideas:

1. Apply your refund toward food, shelter, healthcare or other basics.

2. If those needs are covered already, set up an emergency cash fund. You never know when you're going to need quick cash. 

3. Pay down debt

Once these prorities are covered, go buy that Harley Davidson. They don't lose value as fast as other vehicles with rubber tires and they are a whole lot more fun!

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