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CFO Corner Week 11: File Your Taxes & Plan Your Refund

Updated: 2 hours ago

What to do with your taxes


A tax refund can disappear in a heartbeat if you don't have a plan for it. This week, we're making sure that doesn't happen.


It's mid-March, which means most tax documents have arrived, refunds are starting to hit bank accounts, and the April 15th deadline is getting closer. In Week 11 of CFO Corner, Meghan walks through a full tax season checkpoint  -  from confirming your documents to deciding exactly what your refund is for before it arrives.


Step 1: Confirm You Have All Your Tax Documents

Before you can file, you need to make sure everything is in hand. Here's a quick checklist of the most common forms:

  • W-2  -  from each employer you worked for last year

  • 1099-INT  -  interest income from bank accounts

  • 1099-DIV  -  dividends from investments

  • 1099-NEC or 1099-MISC  -  freelance, contract, or side income

  • 1099-B  -  investment sales from a brokerage account

  • Form 1098  -  mortgage interest statement


Most of these should have arrived by early February. If anything is missing, check the online portal for that bank, employer, or client  -  most companies post forms digitally before mailing them. Don't wait, because filing with missing documents and having to amend your return later is a headache you don't need.


Step 2: File Your Taxes

If you haven't filed yet, you have three main options:

  • Tax software like TurboTax, H&R Block, or FreeTaxUSA  -  great if your tax situation is straightforward. Meghan has used TurboTax for years and highly recommends it. Link here.

  • A CPA or tax professional  -  the right call if you have a side business, rental property, or a more complex situation.

  • IRS Free File  -  if your income falls below a certain threshold, you may qualify to file completely free through IRS-approved software.


Whichever route you choose: file early. It reduces stress, gets your refund to you faster, and gets it off your plate before the April 15th deadline creeps up.


Step 3: Plan Your Refund Before It Arrives


This is the most important part of the episode  -  and the mindset shift that makes all the difference.


Your tax refund is not a bonus. It's money that was already yours. You overpaid your taxes throughout the year, and the government is returning it. So the question isn't "what should I treat myself to?"  -  it's "what is this money actually for?"


Here are four smart options to consider:

  1. Pay down debt  -  especially high-interest debt like credit cards. Paying off a 20% interest rate card is essentially a guaranteed 20% return.

  2. Boost your savings  -  top up your emergency fund, or put it toward a sinking fund for upcoming planned expenses.

  3. Invest it  -  contribute to an IRA, add to a brokerage account, or work toward maxing out a retirement contribution.

  4. Planned spending  -  if your finances are in solid shape, it's okay to use your refund intentionally on something meaningful. The key word is planned, not impulsive.


Decide now. Write it down. Don't let it quietly disappear into your checking account.


One More Thing: Is Your Withholding Right?

If you consistently receive a large refund, it may be worth adjusting your W-4 withholding later this year  -  after tax season settles down. A large refund means you've been giving the government an interest-free loan all year. Adjusting your withholding puts that money back in your paycheck where it can work for you month to month.


After You File: Three Things to Do

  • Save a digital copy of your return somewhere clearly labeled  -  you'll need it for mortgages, financial aid, or next year's filing

  • Keep your W-2s and 1099s in your tax folder

  • Make a note of one or two things you want to do differently next year  -  more retirement contributions, better side income tracking, smarter HSA use


Resources Mentioned in This Episode:

 
 
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