Save it for emergencies – You’ll be more relaxed and virtually stress-free if an emergency strikes and you actually have the cash to pay for it.
Put it toward paying cash for your next big ticket item – Big screen television, car, boat, etc. But think about this, too. If you got enough back to nearly buy one a big ticket item you need to look at your deductions. Why are you letting the government use your money without interest for a whole year?
Pay off a debt – Start with the smallest debt and pay them off until your refund is gone. Getting those off your back will be more satisfying than any “stuff” you could buy with the money.
Invest it in your retirement or your kid’s college fund – That little check could be huge in the long run if you invest it in a good mutual fund.
Put it toward the mortgage – The sooner you pay off the house, the sooner you’ll completely free up your greatest wealth-building tool – your income.
Give it away to a great charity, your local church or a needy family – The most fun you will ever have is giving it to someone who truly appreciates it.
Traditional IRA or Regular Retirement Account?