Although most people know it is unwise to pay in too much money in taxes every year, it's rather easy to do so. When tax overpayment happens, tax refunds are the result. This can often leave people wondering what to do with all that extra cash. Okay, maybe not wondering what to do (that new T.V. may be calling your name...), but it might leave you wondering what you should do with a hefty refund. Here are the basics about the wisest decisions for a windfall of cash.

Pay Down Debts

It's getting close to that wonderful season again. Yes, tax season. Ugh. Unless you're a CPA or secretly love to read the IRS tax code, you probably don't look forward to tax season, particularly if you're self-employed. However, if you know a few things about taxes, the season doesn't have to be all gloom and doom. The following are a few general things to keep in mind about self-employment and taxes, courtesy of the IRS.

How the IRS Defines Self-Employment

For many people, the terms charity and deduction are practically synonymous. But if you’re giving to a charity to save money, you’re giving for the wrong reason. You haven’t saved money, you’ve just basically un-earned it from a tax perspective.

The best thing about tax-time? The refund. Such a joyous time, don't you think? When you hear the word, doesn’t it make your little heart go pitter-pat in sheer delight? Regardless of whether overpaying your taxes so you get a big refund is a good idea, for most self-employed people they probably aren't going to have a refund. Let's look at some ways to minimize what you'll have to pay, or maybe even get you into that refund territory.


What better time is there to ponder taxes than now, when tax season is upon us and in full swing? While some of us are still deciding between employing Turbo Tax, H & R Block or our college buddy who kinda dabbled in accounting, here's a bit of tax-related reading dedicated to marginal taxes.

You've probably heard the saying "a penny saved is a penny earned." Makes, sense. A penny is a penny, right? It's actually not exactly true. In most cases a penny saved is actually better than a penny earned. “What?” you ask? Well, thanks to federal taxes, earning a penny typically leaves you with only a fraction of your hard-earned coinage, while saving a penny post-tax leaves you with an actual full, shiny, copper coin. In fact there are many benefits to saving versus earning, so let's take a look.


Thinking about saving money for the future these days is a bit like getting your child to eat veggies after they turn two.  Both scenarios can be difficult for parents, despite the fact that both really are in the best interest of all parties involved.  Eventually, though, Junior will eat something of solid nutritional value on his own without your prompting, hair pulling, or begging.  Saving some of your income can also be painless, easy, and certainly beneficial.  In our ongoing series of great accounts for your money, we bring you a bit on College Savings Accounts. 

If you're like just about any mom out there, you have some form of medical expenses.  Sally is going to need new glasses this year.  Johnny will definitely need some braces on those teeth.  You have to take this medication that is simply not covered in your medical insurance, and guess where the money for that comes from: you got it, your purse!  Also, just like anybody else out there, you'd love to cut expenses, and maybe even save a little money to boot. 

Recently, my husband switched jobs, and in an effort to create financial balance among his multiple retirement accounts, he attempted to roll his two outstanding accounts into his newest job's 401(k).  Both of the original accounts were denied rollover, so we had to investigate the 401(k) rules to determine our best strategy.  Let's look at what I found.

What's a Rollover?