How should you spend your income tax return?
GAYLORD, MI -- Some people dread filing their taxes because they know it's time to pay the government.
Others can't wait because they know they're about to get a big, fat check.
For those getting money back, the question is, what's next.
We’ve talked to a couple experts who say it depends on the individual's financial situation.
According to the IRS, last year, the average refund American’s received was $3,000.
The question becomes, how do you get the best "bang for your buck?"
Here are a few ideas.
April 18th. That's the date you need to have your taxes filed, a few days later this year because of a Washington, D.C. holiday, but even with the extra time, accountant Matt Rooyakker says don't sit on it.
"The dollar today, it's worth more today than it is tomorrow, so you don't procrastinate it, but at the same time, you don't want to rush it, I mean, there are a lot of tax deductions out there where it's worth taking your time and going through," said Accountant Matt Rooyakker.
If you file electronically you can expect your refund to hit your bank account in about 10 days. So now that you have the money, the question becomes, what do you do with it?
"Based on your circumstance, you take a look at what would be best for you; work with a financial advisor that spends time with you face to face to make those great decisions," said financial planner Phil Hofweber.
Hofweber is a financial planner for Edward Jones and has a list of three main things you could put the return toward. Number one -- pay down some of your debt. Number two -- put the money away for emergencies. And number three -- fund your individual retirement accounts, or IRA's.
"Use your chunk of change wisely," advised Hofweber.
Another option for your tax refund -- home improvements. Have you ever thought of saving for the future, right in your kitchen?
"If you replace your old refrigerator with an Energy Star qualified refrigerator, you're saving 70 percent on average in energy," said Allison Restifo, an employee at the Gaylord Home Depot.
Take a Energy-Star refrigerator for example. Over a 10 year span, you'll pay $510 in utilities. With a non-Energy-Star refrigerator, you'll spend $1,700 dollars. The savings equal $1,190.
If you're in the mood for spending instead of saving how about a get-a-way?
"There are great deals and my best advice is to call your local travel agent, because we can give you ideas that you may not have ever thought of," said travel agent Kay Long.
Whether you choose to save for your nest egg or fly the coop, get cracking and don't miss the April 18th deadline.
For more ways to spend your return, CLICK HERE.
To visit the Internal Revenue Service's website, CLICK HERE.
To visit the Edward Jones website, CLICK HERE.
To visit the Royakker & Sitz website, CLICK HERE.
