6. Plan ahead for any refund
When you expect a tax refund, you have just a few options for how it’s handled.
- You can apply some or all of the refund toward next year’s taxes. If you normally pay estimated taxes throughout the year, that can help cover the first quarterly installment.
- The government can send you a check or deposit the refund directly into your checking or savings account.
- You can contribute some or all of your refund to certain types of accounts (IRAs, health savings accounts, education savings accounts) or buy U.S. Savings bonds through Treasury Direct.
However, you can also split your refund among the direct deposit choices by completing Form 8888. Plan ahead and tell your tax preparer what you want to do exactly!
