Experts Offer Tips For Managing Tax Refund

OKLAHOMA CITY -- If you're like millions of Americans, you're now awaiting your refund check from the IRS.

Brian Shafer, a dentist, said it looks like he will get some money back from Uncle Sam this year, but he'd rather not get a penny, reported KOCO-TV.

"If we could break even, then that's perfect," Shafer said.

Financial expert Ted Hughes agreed.

He said it's actually better for you to break even, so that you have access to more of your money throughout the year.

"What you're doing is giving the government an interest-free loan," Hughes said.

Hughes said that's something to consider for next year when you're figuring out how much money to let the government take out of your paycheck. However, for now, you've got to think about the smart ways to use that refund.

The first place you should look is your credit card statements, consumer debt or outstanding loans.

Why? Hughes said the interest on debt eats away at personal finances. He added that even if you have no consumer debt, you should consider saving and investing.

"Maybe making an extra mortgage payment -- that's a great idea," Hughes said.

A boost to your IRA or 401(k) is a good idea, too.

Hughes said if you've done all that and still have a little cash left over, then it's OK to spend a few dollars on yourself.

"Everything in moderation," Hughes said.

If you want to adjust your taxes so that you break even next year, check with your payroll department or a financial advisor for help.

Hughes said that extra money you'll see in your paycheck can either go toward a retirement plan or simply help pay those monthly bills.