Last week to do your taxes, how will you spend your refund?

El Paso News

The deadline is approaching quickly to get your taxes done, April 15 is the last day to file.

Taxes can be difficult, however, the upside is getting your tax return back. A large amount of money at one time can be exciting. El Paso financial advisor Michael Flores has some tips on the best ways to spend your return this year, getting the most out of your money. 

“For most people, its the largest check they will see the entire year and rather be wise with that money and maybe save part of it for a rainy day, they go out and spend it and it’s probably gone within three or four weeks,” said Flores.  

He said the best way to spend your tax return is to pay off debt. Or instead, save it and open an individual retirement account which could reduce your taxes for next year.

Another option he gave is to save the money for a rainy day. Flores said that first, you should always save the money if you don’t have three to six months of living expenses already saved. 

“We look at taxes like its additional money or that is just rained from the clouds but it’s very important to not just spend it because you never know what’s going to happen later on,” said El Paso Tax Payer Elena Lemmon.

Flores says that if you ask people in six months what they spent their tax return on, most people will have no idea. If you do decide you want to spend the money, the best way to is investing in your home with improvements or with a down payment on a new vehicle, Flores said. 

With just one week left it’s not much time to think about what you will do with this year’s tax return. However, it’s never too late to start planning for the future. 

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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