According to recent reports from the Internal Revenue Service, the income tax refund that the average taxpayer receives is about R $ 2,800. It is welcome money, especially when finances are tight, when you have outstanding bills, an additional $ 2,800 may be that financial breath you were needing.
Who is entitled to a refund of income tax?
You are entitled to receive the refund the citizen who paid the “Income Tax” plus during the previous year declared (the income tax is deducted directly from the payroll of salaried workers, for example). When declaring, the IRPF program does the math. Who has many deductions to make, such as minor dependents and medical expenses, for example, earns tax rebates. At the end of the day, the declarant may have some money to receive.
The Internal Revenue Service makes seven refund lots annually between June and December. If you have the right, be aware of the refund and see when the batch release will take place. However, before sitting down and imagining all the good things you can do with this extra income, consider following our list of tips below with some of the smarter ways to use the Income Tax refund .
Pay outstanding bills and expenses
Having late or defaulted bills is one of the worst things to your credit. If you get rid of this bad name and gain more breathing space by having credit to do what you want, then pay your Income Tax refund to clear your name from the Serasa and SPC list.
Save for small emergencies
Did you know that having an emergency fund consists of having cash saved for at least 3 to 6 months of reserve for everyday expenses? With the income tax refund money build a financial safety net for you and your family.
You will not have to worry about money for a while if you lose your job or your source of income, you will not have to worry about losing your home or car while looking for a new job.
Paying more expensive and high interest debt
The Brazilian citizen carries average debts of around R $ 5,000, not including loans for students, loans to buy cars or mortgage the property. Putting a refund in the amount of $ 2,800 to pay debts with higher interest such as the credit card or personal loan taken at Crefisa could save a good amount of money.
Invest in yourself
In addition to saving for emergencies or paying off debts or meeting your financial goals, it often means generating additional income. One smart way to use the Income Tax refund is to make investments on yourself.
You can pay tuition to learn a new skill or become certified in some craft, you can still fund your dream of learning English in another country or even attend a conference or vocational course to help maximize your earning potential.
Contribute to a private pension plan
Not many people own individual private retirement accounts, they allow you to earn compound interest on the money you save for your future retirement. This type of retirement generally yields tax-free after 10 years of application, and a single contribution of $ 2,800 can grow to more than $ 10,000 in 20 years.
If you do this with all the yearly refunds for that time period, imagine how much you will save for retirement, it will certainly ensure a more relaxed and comfortable time.
Use to pay off debt and for achievements
If you can not see yourself using your entire Income Tax refund responsibly, try using 50% to pay off debt, 25% for emergencies or savings, and do whatever you want with the remaining 25%. That way, you can still please your consumer ego, while fulfilling your financial obligations responsibly.
Doing a lot of shopping with your Income Tax refund for sure will get you nowhere very fast! And when the money runs out, you’ll wonder how you spent all the money.
With these clever ways to use your Income Tax refund you will be sure to stay at peace with your spirit when thinking about your financial future.