From reconciling your Advance Child Care Tax Credits to reporting stimulus payments and unemployment income, federal taxes for 2021 may be more complicated than last year. Fortunately, the Internal Revenue Service has an interactive tax assistance search that can help with your tax questions. Additionally, the Consumer Financial Protection Bureau made a list of increased tax benefits available that may help guide you this tax filing season.
If you receive a tax refund, you also have the opportunity to get ahead financially by paying down debt or saving for the future.
Saving Your Refund
If you receive a tax refund, here are some helpful tips to save money:
- Plan to save part of your tax refund. You might already have plans for what you want to do with your refund, but if you plan to save a portion of what you receive, it could help you down the road. Saving 25 percent of your refund upfront can help when an emergency occurs or when you need a little extra cash to meet a financial goal.
- Set up a savings account. Review your options for a savings account and choose the most convenient way to set aside your savings. Be sure to set up the account in advance so you are ready to use it during tax time.
- Deposit some of your refund into a separate account when you file your return. If you are receiving a refund, use your tax form to put some of your refund into your checking account and the remainder into your savings account. Remember to take your checking and savings account information with you if you visit a tax preparer.
For more information on tax time savings tips, visit the Consumer Protection Finance Bureau Resource Library.
Employee Resources and Benefits to Support your Financial Health
The Department of Homeland Security cares about your financial health and has resources in place to help. Your Component Employee Assistance Programs can provide financial and legal consultation services or refer you to a screened financial counselor who can provide you help in making your family budget with a no-cost initial telephonic financial consultation.
Contact the DHS Worklife Specialists for more information on programs that can help you plan for tomorrow while saving for today.