What Can You Do with Your Tax Return?

As the tax deadline is approaching, you may have already filed, or you might be in the midst of filing. But have you decided what to do with your return this year? You may already have a plan in place, though if you don't, you might still be contemplating what to do with the extra cash once it hits your bank account. Of course, you should always manage any debt you have before taking on anything else. If you don't have any debt, however, there are plenty of other excellent options of what to do with the extra funds instead of leaving them in your checking account. Here's a few ways you can make the most of your tax return:

Reinvest

A great way to utilize your tax return is to put it into your portfolio. By doing so, you give yourself the opportunity to potentially turn your one-time tax refund into something that can allow you to profit for years to come. This extra boost for your portfolio can make a huge difference in your earning potential as an investor and take your long-term investment strategy to the next level. When you prioritize your investments, you're setting yourself up for financial success by providing a chance for your wealth to grow. It's crucial to always consider your risk tolerance level when funding your brokerage account, as all investments involve risk and profit cannot be guaranteed.

However, the only way to reach your goals as an investor is to develop a strong investment strategy that works for your personal financial situation. If you choose to reinvest your tax return instead of spending it elsewhere, you might find those goals more obtainable. Additionally, you can use these funds to add to your IRA or other retirement account to plan for further into the future. Whichever method you decide on for reinvesting your return, make sure it aligns with your objectives and financial plan.

Save

While it's always great to have additional funds you can add to your investment portfolio, it's not the only thing you can do to benefit yourself financially. Depending on your finances, life goals, and the amount you're expecting in your tax return, you might find that you want to prioritize something other than your investments. You can also choose to save your return. Maybe you need to replenish your emergency fund after using it to fix your car or pay for unexpected medical expenses, or maybe you're in the early stages of family planning or buying a new home and want to set the money aside for use in the near future.

Whether you're investing for retirement, saving for a large purchase, or building long-term wealth, putting your tax return towards your future can help you make huge strides on your journey to achieving your financial goals. Before deciding on what you'd like to do with your return, consider your current situation and what might be the most beneficial to you and your loved ones.

Make the Most of Your Return with TurboTax

Haven't filed yet? As a Webull customer, you can save 20% with TurboTax Premier. By using TurboTax, you can rest assured that not only are you getting the best refund possible, but you're also saving on any taxes you may owe. Don't forget that you can also have a TurboTax expert assist you as you file, so the process can be seamless and stress-free. If your taxes are more complex than usual, a tax professional can help answer any questions you may have or even complete the filing process for you.

Remember, the tax deadline is April 15—file now to get your refund faster!

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Disclaimer: Webull does not offer tax advice. For any questions about taxes, including how to file, we recommend speaking with a tax professional. Webull Financial LLC (member SIPC, FINRA) offers self-directed securities trading. All investments involve risk.  Index Option Contract Fees, Regulatory Fees, Exchange Fees, and other Fees may apply. More info: https://www.webull.com/disclosures