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How to Use Your Tax Refund Toward Retirement

April 25, 2020

From the U.S. News & World Report website

The average tax refund was $2,729 for tax-year 2018, according to the IRS. If you’re expecting some money back from the government this year, there are many ways to use it.

“Before deciding what to do with your tax refund, it is important to think about what your tax refund is and what it is not,” says Vicki Bogan, associate professor at Cornell’s Dyson School of Applied Economics and Management at the SC Johnson College of Business. A tax refund is not free money or a bonus. It is an amount that you have overpaid in taxes. If your employer withheld $10,000 from your paycheck during 2019 for taxes, and you find you owe the IRS just $7,000, you can expect a tax refund of $3,000 this year.

Here’s how your tax refund can help you prepare for retirement:

From → Finance

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