Nine Ideas for your Tax Refund

By Jim Hungerford, CPA Associate Vice President of Finance

A tax refund marks a great chance to set yourself in a better position for the future. If you’re getting a windfall from the IRS, here are some ways to make sure your money continues to work for you.

1. Create an emergency fund

Many people don’t have an adequate savings account accessible in case of a sudden nancial need. A lack of savings leaves you vulnerable to a medical emergency or major repair and can force you to seek out short-term loans at high interest rates or carry credit card balances for an extended period. Using your refund to start or augment an emergency fund could leave you breathing easier should one of those events arise.

2. Pay o debt

If you are carrying a credit card balance, consider using your tax refund to pay that o . It doesn’t make much nancial sense to put the IRS check for $3,000 in a fund yielding 1% interest and maintain a $3,000 balance on a credit card account charging 18% interest. Going this route allows you to put more money in the bank every month once those minimum payments vanish from your list of bills.

3. Fund your retirement

What better way to sock money away for retirement than by using funds that aren’t a part of your paycheck? You can use the funds to purchase or add to a Roth or traditional IRA.

4. Start (or add to) a 529 College Savings Plan

If you have children or grandchildren, you’d be doing them a huge favor by saving your refund in a college fund for their bene t. Setting up a 529 College Savings Plan can help them a ord a higher education in an era where rising costs leave many saddled with massive debt along with the degree. If you invest in Connecticut’s plan, the CHET (managed by Fidelity), you can even be able to pick up a deduction on your state income tax return.

5. Put it toward your student loans

At some point the moratorium on student loan payments will be lifted, and you will need to start paying those loans again. Student loan payments can be a frustrating expense, one that can hold people back from reaching other nancial goals. You could use your tax refund to make a larger-than-usual payment. That could put a dent in your principal balance and bring you closer to life without student debt.

6. Invest in the stock market

Historically, the stock market has o ered greater return on investment than savings accounts, CDs or bonds. While its uctuations make it a risky choice for immediate nancil need, the long-term outlook makes it a better option. Consider individual stocks or an index fund that moves up and down along with the market.

7. Prepay your mortgage

Making extra payments on your mortgage can be a great way to save money over the long term. Because so much of your payment on a long-term note goes to pay o the interest, reducing the principal can have an exponential e ect over the life of the loan. Even an extra payment or two now can make a big di erence in your future obligation to the bank.

8. Cover your bases with Life/Disability Insurance

Help take care of yourself and the people you love by using your refund to ll in any Disability and Life Insurance gaps. Thinking about what would happen to your family if you’re not around or if you’re too sick or injured to work isn’t fun, but it may help to put the appropriate amount of protection in place, for you and your loved ones’ futures.

9. File a new Form W-4 with HR

If your refund is several thousand dollars, you are making an interest free loan to the IRS. You can reduce your withholding, and thereby increase your current take home pay, by ling out a new Form W-4 to set your withholding accurately, based on a series of questions on the form. On the ip side, if you owe the IRS a bunch of money, you should also consider ling a new Form W-4 to avoid interest and penalties from underpayment of taxes.

Renee Corsillo has been promoted to Patient Services Administrator in the Danbury clinic. Renee started with PTSMC Danbury in February 2022. Prior to joining PTSMC, Renee spent quite a few years working at veterinary clinics and hospital emergency rooms as an ER Technician and a Clinical Information Manager.

Renee arrived at the Danbury clinic as numbers began to increase. Josh McAdams, Partner and Director, commented, “Renee embodies all that is PT for Life! She is loved by our patients and sta . She also brings organization and a sense of calm to the clinic. She is an innate problem solver and has been our go-to person since she was hired. We are fortunate to have her, and I am personally thrilled for her to take on more responsibilities and have more opportunities here in Danbury.”

In her personal time, Renee loves to hike with her rescue dog, Orion. They have solo hiked all of the trailed high peaks in the Catskill Mountains together. Renee is also an avid runner. She LOVES running! The half marathon is her favorite distance. She completed the Hartford Half and the Philly Half in fall 2022.

As a Patient Services Administrator, Renee is excited to take on more administrative responsibilities as the clinic continues to grow in sta and volume. She loves that she will take on some of the tasks that previously fell to Josh so that he can be free to focus on other aspects of running the clinic.

Renee also looks forward to the opportunity to get involved in community engagement in the Danbury area. She believes that everybody should know how great PTSMC is!

Nate Panico has been promoted to Patient Services Coordinator in the Westbrook clinic. Nate started at PTSMC in December of 2021 as one of PTSMC’s rst Patient Care Coordinators (PCC). In the PCC position, Nate learned the role of both the PT Aide and the Patient Service Coordinator. He completed the Skills Introduction for the PT Aide (SIPTA) Program in July 2022.

His primary focus has been the front desk at Westbrook, and he stepped up to take over front desk responsibilities during PSA Emma Graham’s leave last summer. Emma shared that, “Nate always comes to work with a positive attitude, he’s willing to learn and always engaging in a professional manner with patients. Patients and sta always have good things to say!”