What to do with tax return

[pedstar09]

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Simple question: Tax season is upon us. What should I do with an expected tax return? I do anticipate significant increase in living expense from next year. Should I save it for that? Or, should I put it in accounts such as Roth IRA, HSA that I will not anticipate to be used in years to come? Or should I try to pay off some extra student loans?

 

[st2205]

A lot of this depends on where you're at in training. There is, however, one answer that could be sometimes helpful:

 

[ThoracicGuy]

Simple question: Tax season is upon us. What should I do with an expected tax return? I do anticipate significant increase in living expense from next year. Should I save it for that? Or, should I put it in accounts such as Roth IRA, HSA that I will not anticipate to be used in years to come? Or should I try to pay off some extra student loans?

What is your loan interest rate?

 

[pedstar09]

Just below 6ish. And yes, Vegas is not a bad idea afterall, maybe make enough money to repay that student loan?! 😛

 

[PistolPete]

Simple question: Tax season is upon us. What should I do with an expected tax return? I do anticipate significant increase in living expense from next year. Should I save it for that? Or, should I put it in accounts such as Roth IRA, HSA that I will not anticipate to be used in years to come? Or should I try to pay off some extra student loans?

What about hookers in Vegas?

 

[ThoracicGuy]

Just below 6ish. And yes, Vegas is not a bad idea afterall, maybe make enough money to repay that student loan?! 😛

Paying off loans wouldn't be a bad option.

I would max out your ira and then any other investments you have open to you, then loans.

 

[sazerac]

Simple question: Tax season is upon us. What should I do with an expected tax return? I do anticipate significant increase in living expense from next year. Should I save it for that? Or, should I put it in accounts such as Roth IRA, HSA that I will not anticipate to be used in years to come? Or should I try to pay off some extra student loans?

Save. Save now. Save until it hurts. Save.

Get into the habit of saving any bonuses and/or windfalls, especially if you have access to tax-advantaged accounts like a Roth IRA or an HSA. You can thank me in 20 years. I am quite thankful today I that back in 1997 I was saving like..., like, ummmm, like Mariano Rivera.

Oh, and next year don't loan the federal government money interest free. Adjust your W4 or your 1040-ES or whatever so you are withholding slightly less than necessary. The penalties only kick in if you are short by $1,000 or more, and that's only if they notice. I under withheld for 5 years in the early 2000's (paying some pretty big tax bills every April 15th) before the IRS finally dinged me with a small and quite reasonable penalty and encouraged me to use 1040-ES the following year.