Today reader Jeremy asked a tax question about IRAs and tax refunds. When you make Traditional IRA contributions, you can deduct that amount from your income and pay less in taxes. Jeremy asked if you can use your refund to make an IRA contribution, file an amended tax return, and get a second refund.
Like it or not, tax time is upon us as taxes are due a little more than a month from now. Many dream of getting that large income tax refund and going out to blow it on something nice they’d not normally be able to afford, but there generally isn’t much wisdom behind that. I’m assuming that since you’re reading this article, you’re looking for wise ways to use your income tax refund. If that’s the case, I’d like to share some of the ways you can use the influx of cash to your benefit. As an aside, I’ll not be discussing if you should have a large or small refund, but instead ways you can use your tax refund to best improve your financial situation. [Read more…] about 4 Potential Uses for Your Income Tax Refund