I’ve Got Extra Money On My Tax Refund…What Should I Do?
If you received more money on your taxes than originally expected, don’t celebrate too quickly! If for some reason, you received more money because of an error, you will be liable for paying that money back. So, it’s just best practice to verify, and then verify once more before submitting your claim to the Internal Revenue Service (IRS).
Believe it or not, it is possible for the IRS to make a mistake. There are some rare cases where you may end up getting too much or not enough on your taxes. In most cases, the IRS will catch these errors. It may result in a delay of your refund though.
Have the Experts Review
This is why Success Tax Relief, a tax relief firm located in Texas, highly recommends taxpayers to hire an experienced accountant or tax preparer to take care of the filing process. There are too many things that could go wrong if an inexperienced taxpayer attempts to take care of his or her taxes, even with an EZ Form.
Don’t Celebrate So Quickly
So, once you’ve verified that you have indeed legally received more than expected on your tax refund, then the one thing you absolutely should not do is go on a blind shopping spree. Do not spend your money hastily. Businesses all over the country are well aware that tax season has come and will be offering a plethora of sales and bargains during this time of the year—which is typically between February and April.
Be Smart. Be Responsible.
When it comes to money, you have to be smart. Take care of any obligating debts. It may be tempting to use that extra money to treat yourself, but once that “treat” has been used, your debt will still be waiting for you. Wouldn’t it be nice to pay off a credit card knowing that you won’t have to worry about getting another bill in the mail? That might be just as fulfilling as going on a short-lived vacation. Sometimes, a piece of mind trumps everything else!
Start By Paying a Little!
Many people might try to reason that the extra money won’t make much of a difference to their existing debt balance. While it may not feel too fulfilling to pay a debt that doesn’t provide an extreme decrease in balance, it will still be lesser than the amount originally owed. And by applying this sort of thinking to your debts, you’ll eventually start paying them down slowly but surely. Before you know it, you’ll be completely debt free.
Weigh Long Term Options Against Immediate Gratification
Whether you’ve receive a little or a lot more of a refund than expected, it’s worth taking the opportunity to consider all of your options. Having the financial freedom to buy that coveted item or go on that dream vacation will be much more enjoyable when you’re debt free.
Just think about it before you start spending. And if you need a little help with your tax situation, Success Tax Relief can help individual taxpayers and businesses with any tax advice. Call us today at 877-825-1179 for a free consultation or contact us online.