Make the Most of Your Tax Refund

It's that time of year again — tax time! If you've received or are expecting to receive a refund, Wright-Patt Credit Union (WPCU) has a few tips to help you make the most of your tax refund money.

Give your tax refund a purpose

Getting a tax refund is exciting! But remember, it's not “free money," it's your hard-earned money from the previous year. Instead of spending your tax refund right away, make a plan to put it to good use!

Here are a few ideas:

• Use part of your refund to pay down debt. WPCU can help you find the right repayment strategy so you can get ahead of debt!
• Build up your emergency savings fund. Aim to save at least 3-6 months of living expenses in case of emergencies. This includes housing, utilities, food and other essential expenses.
• Put your tax refund towards your savings goals, such as paying for college, buying a car or home and saving for retirement.

Make the most of your tax refund this year! Meet with one of WPCU's Financial Coaches at your local Member Center to talk about how your tax refund can help you reach your financial goals.

Set yourself up for success next tax season

Once you've completed your 2021 tax returns (and breathed a sigh of relief), it's smart to start thinking about next tax season! Planning ahead will help you feel less stressed — and it may even help you save money. 

Here are a few things you can do to prepare for next tax season:

• Determine your filing status. Certain life changes, like getting married or having a child, can change your filing status. Do your research ahead of time so you can choose the best option for your situation.
• Evaluate your dependents. Claiming a dependent on your tax return can help you save thousands of dollars on your taxes. If you're not sure who qualifies as a dependent, use the IRS' interactive tax assistant.
  
• Revisit your tax withholding. If you owed taxes or received a large refund last tax season, it might be time to consider adjusting your withholding with your employer. Use the Tax Withholding Estimator tool offered by the IRS to help you figure out the right amount of tax to have withheld from your paycheck.

Here's to a Successful Tax Season!

At Wright-Patt Credit Union, we want to help you achieve financial flexibility and freedom during tax season and all year round! As a member-owned cooperative, we offer great rates, low-to-no fees and extraordinary service, delivering more value to our members so they can live the lives they want to live.​

Ready to get started? Check out WPCU's online Education Center for more helpful financial tips, tools and resources, or stop by a Member Center to speak with one of our friendly Financial Coaches.