Learn how to create a wise plan for a tax return. Financial priorities, strategies and steps will be discussed. Main focus is on what to do with a tax refund.

1. Sarah Rach-Sovich

3. FREE TAX PREPARATION
 West Central Minnesota Community Action (WCMCA) offers free tax
preparation services to families who earn less than $53,000 per year
and individuals who earn less than $30,000 per year
 Call to schedule an appointment 800-492-4805
 Alexandria, Elbow Lake, Glenwood, Morris & Wheaton
 Additional information on free tax prep sites:
 2-1-1 Minnesota Information and Referral
 Minnesota Department of Revenue

4. ON YOUR OWN
 Many reputable sites that will guide you
 File online (sometimes for free)
 Help you identify deductions
 Less errors (calculated for you)

5. UNEMPLOYMENT INCOME
 Unemployment income is taxable
 You'll get a Form 1099-G that will tell
you how much unemployment you must
report on that year's tax return

6. CHECK EITC ELIGIBILITY
 The earned income tax credit, or EITC, is a
tax break for workers who don't make very
much money
 Unemployment benefits don't count toward
EITC eligibility, but if you earned any other
income during the year, you can use that
amount to calculate a possible credit claim
 Single taxpayers can claim the EITC, but
the benefit is greater for workers with
dependent children

7. DEDUCTIONS
 Medical Expenses
 Children
 Student Loan Interest
 Mortgage Interest
 Property Tax Interest
 Rent Credit
 Donations

9. JOB SEARCHING DEDUCTIONS
 Hang on to all your job-searching related receipts!
 There are, however, limits to job-hunt tax breaks
 Same field, no substantial break
 You must itemize to claim job-search expenses
 These costs are miscellaneous deductions, meaning
they and other eligible miscellaneous expenses must
amount to more than 2 percent of your adjusted gross
income before you can claim them

10. JOB SEARCHING DEDUCTIONS
 What you can write off
 Employment and outplacement agency fees
 Resume services
 Printing and mailing costs of search letters
 Want-ad placement fees
 Telephone calls
 Travel expenses, including out-of-town job-hunting trips

13. TAX REFUNDS
 Last year the average refund was $2,860 according
to GoBankingRates
 What do people do with their tax refunds?

19. INVESTING
 Retirement
 Through employer
 On your own
 IRA
 Stocks/bonds/CDs
 Repair your credit score
 It can affect SO many other areas of your life – even getting a job!
 Start by getting a copy of your report
 In yourself… leading to larger paychecks in the future!
 Training – conference
 Tuition – class, degree
 Membership to an organization
 Start a business

21. SAVING FOR PEACE OF MIND
 It can be hard to save!
 Cash on hand to cover
unexpected expenses
 Ideal vs. realistic
 3 months of expenses
 Whatever you can save is
better than nothing
 Even just a portion of it…
 Opportunity fund!

23. DON’T GET CAUGHT UP IN THE FEELING…
REMEMBER THE DIFFERENCE BETWEEN WANTS & NEEDS

27. THERE ARE WISE WAYS
TO SPEND A TAX REFUND…

28. IDENTIFY NEEDS
Housing
Food
Transportation
Debt Repayment
Down Payments
Other Needs

29. HOUSING FOOD
 Find Housing
 Use for a deposit
 Catch up
 Get ahead
 Buy gift cards for yourself/family
 Stock up
 Food storage (freezer)

31. DEBT REPAYMENT
 May be forced (taken from your refund)
 Anything in collections
 Things that affect your credit
 High interest
 Credit cards & store charge cards
 If you were paying 18% interest that is like earning 18% on your
investments… you are keeping that much money in your pocket!
 Flip that saved money into a savings/opportunity fund – or spend
wisely elsewhere
 Things that might eliminate a payment
 Saving you money every month

32. Housing
Utilities
Vehicles

33. OTHER NEEDS
 Health issues
 Doctor visits
 Surgery
 Dental work
 Eye glasses/contacts
 Repairs & Preventative Maintenance
 Home
 Vehicles
 Insurance gaps
 Home, renters, liability vs. full coverage
 Computer, phone, internet
 Helpful if you are job searching

34. KARMA & GIVING BACK
If you are able…
Consider giving back
Can be a deduction
Doesn’t have to be monetary
Maybe not this year… but in the future?!

38. FOR NEXT YEAR
 Adjust withholdings??
 Pay yourself first
 Savings account
 Earn interest
 Save receipts
 Document expenses
 Start saving
 Any amount helps!