Smart Ways to Use Your Tax Refund This Year

Syndeo Accountants – one of the best companies providing professional financial assistance – will give you a list of the best smart ways to use your tax return this year.

The annual tax refund is actually a great time to save some money, pay off credit card debt or loan, or ensure long-term financial stability for you and your children. So, let’s see what you can do to in order to be more comfortable and stable regarding your financial status.

1. Boost Your Super Savings

Namely, a person who retires at the age of 65 will need $300,000 money to retire if he/she had around $23,000 annual living expenses. And, of course, those who want to have a more expensive and comfortable lifestyle will definitely need more money to retire, at least $550,000 to be more precise.

As you can see, those are some big numbers therefore, you need to boost your super on time so that you have plenty of time to increase your super savings. Luckily, superannuation is one of the financial services Syndeo Accountants offers. So, feel free to give us a call so we can discuss you having a comfortable retirement.

2. Purchase Work-Related Items

Buying work-related items that cost more than $300 can, in fact, improve your deduction on your next year’s return. Sounds amazing, doesn’t it? Hence, use your tax refund smartly and don’t hold off on buying any expensive items that you need for your business.

Furthermore, purchasing such expensive work-related items at the end of a financial year won’t improve our next tax return to a great extent. Why? – Because such items are depreciated over their ‘effective life’. So, make sure you buy those items early, somewhere in July or August.

3. Eliminate Debt or Loans

If you haven’t been in the business for long and have just set up your company, you are very likely to have a credit card debt or a loan. But, if you don’t want to worry about your financial status too long and paying off forever, you’d better use your tax refund to lower your debt or even pay it off.

And, even though you don’t have enough money to pay it off completely, your interest repayments will actually go down since you will drop your outstanding balance. Thus, you will also save money on the long run.

4. Create a Mortgage Offset Account

Last but not least, here’s one great way to use your tax refund this year if you have a mortgage. Basically, a mortgage offset account is a savings account. But, do you know how it works?

Namely, if you decide to put your tax refund into your mortgage offset account, you won’t receive your monthly savings interest. But instead, your offset account balance will be subtracted from your mortgage loan balance and then your mortgage payment interest will be calculated. In other words, you will pay less interest on your mortgage.

Now that you know some smart ways to use your tax refund, make sure you give Syndeo Accountants a call to get the best financial assistance possible and ensure financial stability.