Tax-RefundThe Internal Revenue Service estimates that about 75% of taxpayers will receive a refund this year.  Many of these taxpayers say they are going to be responsible with their refunds by paying down debt or saving it in their emergency fund.  Here are a couple more options for spending your tax refund:

  1. Re-balance your portfolio – instead of selling stocks to re-balance, use the extra funds you receive to build up your exposure in the areas that need re-balancing
  2. Prepay your bills – Prepay for your car insurance, car loan payments, phone bills, home insurance, etc.  Just be sure to monitor your statements so that you are created for the correct amounts and that you do not end up paying for something that you did not request.
  3. Make home improvements – Don’t forget you may qualify for a residential energy tax credit by making energy-efficient improvements to your home.
  4. Buy a car – Take advantage of the record low car loan rates and use your refund as a downpayment on a new or newer car.

http://finance.yahoo.com/news/smart-ways-spend-tax-refund-191559846.html