Best ways to spend your tax refund
Congratulations, you have successfully filed your taxes! If you are someone who is receiving a tax refund this year, it's time to decide what to do with your new mula. Is there a little devil on your shoulder telling you to treat yourself? We have a couple better solutions for you!
Do you have an RRSP?
It's hard to be responsible with your tax refund when you start thinking "Hey I've been working hard, I should really treat myself!" and you end up blowing all of your return. Have you thought of maybe starting a RRSP? A Registered Retirement Savings Plan (RRSP) is a retirement savings account that reduces your overall taxable income, helps you plan for retirement, helps with your savings and much more. By saving your refund and contributing it to your RRSP it actually lowers your income tax as well as increases your next year's refund.
Do you have a TFSA?
The Tax-Free Savings Account (TFSA) is an account that does not apply taxes on contributions to the account or any withdrawals from the account. You can actually make contributions into your TFSA during anytime of the year, whether it being a little bit here and there or a large amount all at once. By adding your tax refund into your TFSA you are able to afford the trip you have always wanted because you saved wisely. The 2019 TFSA annual limit is $6,000 and the cumulative limit is $63,500.
Do you have a RESP?
If you have children, you may want to look into starting a Registered Education Savings Plan (RESP). This particular savings account is very important because it helps you save for your children's post-secondary education. When you open this type of account it also creates a Canada Education Savings Grant, which is great if you have an RESP because it will boost your return.
Does your home need a makeover?
Close your eyes and visualize your dream kitchen, can you make it a reality? Renovating your home is not a life necessity but when you go to sell your home, you will be glad your refund went to much needed renovations.
Have student loans weighing you down?
Do you feel like your drowning because of your student loans that keep piling up? Instead of spending your refund on upgrading your current phone to the new iPhone, maybe consider using it to help take a bit of the stress off yourself.
Melanie Gesy Professional Corp. is here to help! Call 780-995-5236 today.