Each tax season, households making less than $50,000 claim $100 billion in federal tax refunds. If you’re like us, that tax refund is the largest check you will receive all year. But with the holiday spending season in full force, a lot of us are already thinking about what to do with that cash, whether it’s paying off a credit card, fixing the car heater, or taking a vacation.
You can do all those things, but consider saving at least $50 of your tax refund for longer-term goals, like a rainy day fund or a home. Saving at tax time is as easy as filling out IRS Form 8888 when you file, which automatically sends a portion of your tax refund to a savings account.
By making a commitment to yourself to save now, before you file your taxes, you’re more likely to save. >> Commit to saving at tax time now
And to sweeten the deal, Commonwealth and America Saves are teaming up to offer SaveYourRefund with over 100 chances to win $30,000 in prizes, including two grand prizes of $10,000. To be eligible to win, simply direct $50 or more of your tax refund in a qualifying savings account using IRS Form 8888 and fill out the contest form at saveyourrefund.com.
But to win, you need to save. Improve your odds of saving by making a commitment to yourself now, early in the holiday season. >> Commit to save at tax time