The biggest news this week is the end of tax season, as Americans can stop worrying about Uncle Sam and start worrying about graduation and summer travel.
Your taxes are (hopefully) filed and your W-2s can now be retired to your financial folder, but the April 15 tax deadline doesn’t mean you should necessarily stop thinking about taxes altogether. There are some important financial decisions that can limit your tax burden next year if you implement them now.
One of these benefits is a Roth IRA conversion, which might be a good choice for you if retirement isn’t a reality in the next few years. The conversion allows you to pay taxes on your retirement savings now, instead of in the future when you take the payments. This could be an advantage to those who expect to be in a higher tax bracket in retirement.
According to the latest annual Taxes and Savings Survey from Capital One Bank, 85% of Americans anticipate receiving a tax refund this year, and 35% of them plan to spend that refund right away.
As to what they’ll spend that money on, 22% say they’ll use it to help cover their outstanding debts, while only one in every six or so will put that money into savings. A small percentage — 4% to be exact — will invest it. In addition, 30% will spend their refunds on expenses and necessities.
The Boston Marathon bombings have sent shock waves across the country this week, and, unfortunately, a national tragedy like this means scammers are looking to take advantage of charitable people.
CNNmoney reports that dozens of domain names related to the Boston Marathon were registered just hours after the news of the events broke. In the wake of a tragedy, experts recommend making all charitable donations to national charities established prior to the bombings, as they have the best resources available to assist victims.
Image: NS Newsflash, via Flickr