By Tati Brezina, Innovation Strategist at D2D Fund
A tax refund is the biggest check that many families will see all year, and deciding how to spend it is one of the most important financial decisions a family can make. Setting aside a portion of that refund for a rainy day is not always easy, but can be powerful tool to help families save for their futures.
This year, thousands of taxpayers across the country have already chosen to split and save part of their federal tax refunds. But planning for the future is not the only incentive to save—this year, tax filers who save at least $50 of their refunds are eligible to win $100 weekly prizes and a grand prize of $25,000 from SaveYourRefund! With less than two weeks left in tax season, there is still time to split, save, and win!
SaveYourRefund is a nationwide tax-time savings promotion that has already awarded $800 in prizes to taxpayers who saved their refunds. Collectively, SaveYourRefund entrants have already set aside over $2 million for themselves and their families The word has gotten out about this great opportunity for savers; the promotion was recently covered by NPR, MSNBC, and Daily Finance.
Not sure what to save for? Kiplinger describes 10 different ways that you can use your tax refund to help you improve your financial well-being including starting a college savings fund, rebuilding your emergency fund, and saving for retirement. Using Form 8888, the IRS form that allows you to direct your tax return into different accounts, makes saving seamless no matter what you’re saving for. Your money is directed into different accounts automatically so that you won’t have to move it between accounts later.
Many of SaveYourRefund’s weekly prize winners have said that the chance to win a prize motivated them to save a portion of their tax refunds. Robin Genaro of Utah went a step further: not only did she save part of her refund, she also opened a new bank account with a local bank so that she would have a place to save for her future. You can read about dozens of other winners on the SaveYourRefund website.
Interested in entering? To qualify for SaveYourRefund, you must be at least 18 years old and use IRS Form 8888 to split your refund. Then, save at least $50 in a qualified savings product, which can be a savings account, prepaid card, IRA, certificate of deposit, U.S. savings bond, or Treasury Direct account. Once you have split and saved, enter SaveYourRefundfor a chance to win a $100 weekly prize and the $25,000 grand prize!