The Best Way To Manage Your Tax Return
PHILADELPHIA (CBS) -- Do you expect to get a tax refund this year? Many americans have either received a refund, or have one coming. There are many ways to handle that mini-windfall.
The IRS has processed nearly fifty million returns so far, almost 83 percent of them resulted in refunds. If you expect a refund, experts recommend dividing it up.
"Forty, thirty, thirty helps people plan what to do with their tax refund," said Markita Morris Louis with Clarifi.
She says you should imagine putting your refund into different buckets.
"Forty percent for savings, start an emergency savings fund. Thirty percent for paying debt, catching up on your bills. And the last thirty percent for something you want to do, go to the spa, take a trip" said Morris Louis.
Adding to, or even starting, an emergency fund should be your first priority to cover three to six months of expenses.
"So think of your rent, your mortgage, your car payment, the things that are necessary to keep you going day to day," said Morris Louis.
Then focus on paying down debt. At the very least, pay what's overdue.
"Bring yourself current and start paying on a regular basis, because monthly payments on time will also help your credit score," said Morris Louis.
If you're owed a refund, but are still waiting for it, you can check out the status of your return by clicking the "where's my refund" tab on the IRS website.