How to Maximize Your Tax Refund

Posted on 03/08/2011

According to the Internal Revenue Service the average tax refund this year will be about $3,000. That’s roughly 5% more than the checks received last year. Make sure you do more with that money by maximizing your tax refund.

Use it to Pay off Debt - According to a new survey from the National Retail Federation, about 42% of taxpayers will be using their refunds to pay down debt. That’s about two percentage points lower than last year, but still a good move. You’ll end up paying less on interest by putting a large chunk of cash towards your debt.

Make Energy Improvements - You could take your tax refund and use it to make energy upgrades to your home. Not only will you qualify for a tax credit, you’ll enjoy lower energy bills. Not every repair is eligible for the tax break so make sure you do your research. But some options include ditching outdated energy-hogging appliances, adding insulation to your home or upgrading your heating and cooling system.

Invest It - Make your money work for you by putting it in an investment account. According to a new survey, about 42% of people will put their tax refund in savings. Make this an annual habit and you’ll make a big impact on your retirement accounts.

Get a Lowe’s Tax Refund Card - Put your tax refund onto a Lowe’s Refund Card before March 14 and on March 18 they’ll add 10% to your card. Load any amount from $500 to $4,000 on to the refund card in order to earn your extra cash. This is a great way to maximize your tax refund if you’re already planning on some upgrades around the house.

By Alison Storm

FYE coupon - Use just a LITTLE of your tax refund to treat yourself to something fun! Save $5 on orders of $45 or more with coupon code 5PDFM45M through 03/10/2011.

Home Depot coupon - Save $20 on appliance purchases of $299 or more with coupon code APPLIANCE20 through 03/13/2011.

* Hot deals expire quickly. This deal may no longer be valid.

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