Jan 28, 2023 / Money Tips

Four Financial Solutions for Tax Time

Taxes can be, well, taxing, so we’re doing our small part to make tax season a little less stressful for you. Here are a few helpful financial solutions that you should consider as you get ready to file your return and start to think about the best way to pay your taxes or spend/save your tax refund.

Start Gathering Your Tax Forms

The starting point of every tax season is trying to remember where you put all your tax forms. These forms, sent to you by various organizations, including your own employer and financial institution, form the very foundation of your tax return. If you’re a member of Utah First, you’re in luck. You can find all your Utah First tax forms in one convenient place through Digital Banking. It’s our way of helping you stay organized, so you can recall the exact tax information you need at a moment’s notice.

A Place to Put Your Refund

Expecting a refund this year? You could either spend it all on some fancy record player that’s somehow both old and new at the same time. Or, you could save it away for another day and earn even more return for your refund. If you’re in the mood for saving money, consider putting your refund in a term deposit. Right now, you can earn up to 4.75% on a 24-month term deposit.

Cover a Large Tax Bill

Have an unexpectedly high tax bill coming your way? Consider using your home’s equity to cover the costs. A home equity line of credit works like a credit card—you can use as much of your available balance as you want, at any time. And, you can lock in a great fixed interest rate, so you can plan out your payments to the penny. A HELOC is an affordable way to pay for just about anything, including taxes.

Save Up For Next Tax Season

Instead of playing catchup to cover tax costs, start saving early for next year. A money market account is the sweet spot of savings. There are no minimum balances, no restrictions on withdrawals, and no risk to your money with insured savings. You’ll earn more return for your savings in a dedicated account. Right now, you can earn up to 3.25% in a Utah First money market account, and you get the flexibility to withdraw your funds at a moment’s notice—like when the tax bill comes due.

With a little planning and the right financial partner, you can make tax season less taxing for you. Give us a call or stop by a branch to see how you can earn more return for your refund or find affordable ways to pay and save for your taxes.

This information should not to be interpreted as tax advice. You should consult a tax professional for specific questions that you may have about filing your tax return and before taking specific actions that could impact your taxes in your own financial life.