Turning Your Tax Refund into a Financial Win While Avoiding Scams

 

Tax season is here, and whether you’re looking to save, pay off debt, or invest, putting your refund to good use can set you up for success. But while you’re planning, be aware scammers are more active this time of year and always looking for ways to steal your information.

Let’s break down how to make the most of your refund while keeping your money safe.

Build Your Safety Net

Life is unpredictable, and an emergency fund can be a game-changer. Setting aside even a portion of your refund can help cover unexpected expenses, so you’re not caught off guard.

Tackle Debt

If you have credit card balances or loans, using your refund to pay them down can save you money on interest and free up funds for future goals.

Grow Your Savings

Whether you’re saving for something big or something small, adding to a high-yield savings account can help your money grow.

Invest in Your Future

Consider putting part of your refund toward retirement savings or other investment opportunities that can work for you over time.

Support a Cause You Care About

Giving back to your community or a cause you love can be incredibly rewarding, and in some cases, it may offer tax benefits for next year.

 

Stay alert for scams while you’re making these smart financial moves. Fraudsters often target taxpayers during tax season, attempting to steal personal information through fake IRS calls, phishing emails, and other fraudulent tactics. The IRS will never contact you directly by phone, email, or text to ask for personal information or payment. If you receive a suspicious message, ignore it and report it.

If you’re working with a tax professional, do your research. Make sure they have good reviews and proper credentials. Be wary of anyone promising unusually large refunds or charging fees based on the amount you’re getting back. And if you file online, use a secure connection and a trusted tax service, and double-check your IRS account to ensure no one has filed a return under your name.

Make the Most of Your Money with FMB

At Farmers & Merchants Bank, we love helping our neighbors make smart financial choices. Whether you’re saving, investing, or just looking for advice, we’re here to help you get the most out of your hard-earned money.

Let’s turn your tax refund into something great. Stop by or connect with an FMB expert today!