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Help Employees Put Tax Refunds to Good
Use
About 74 percent of taxpayers get a refund
– on average, about $2,700.
How can you help them put the refund to a
good use that will reap dividends for years
instead of blowing the windfall on one-time
vacations, electronics and other purchases?
Here are
some tips
to share:
- Don’t
borrow
against
your
refund.
Refund-anticipation loans dangle out the
lure of instant cash (in one or two days)
– long before the official refund check
arrives but at a high cost that can range
from $30 to $165 depending on the loan
amount. Fees and interest add even more.
The annualized interest on some of these
loans can exceed 700 percent!
- File electronically and deposit
the refund into your checking or
savings account.
Filing electronically doesn’t cost any
extra and can reduce the number of days
before your refund arrives – in six to 10
days instead of four to six weeks with
regular mail.
- Invest the refund.
What a great way to put your tax savings
to good use! If a person invested their
refund in a tax-deferred account earning
8 percent interest each year, they could
double their refund in less than 10 years.
The Benefit Advocates can tailor an educational
program about money, spending and
debt for your employees. For more information,
call us at 1-800-344-5677 or
721-2029 in Winston-Salem.
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Help
Employees Put Tax Refunds to Good Use
