If you are lucky enough to get a tax refund this year, be thankful. Not everyone gets money back. A lot of people owe the IRS. How do you plan to use your tax refund this year? A vacation? A new purchase for the home? Don't waste the money on something frivolous.  Here are some smart tax refund uses to boost your financial profile.

Smart Tax Refund Uses

First, look at your debts. Are you still carrying that holiday shopping debt on your credit card? Are you only making minimum payments? If so, consider using your tax refund to pay down debts. Making a large payment towards a debt is going to boost your credit also. Lower your debt balance and improve your credit score. Sounds like a win-win.

Another smart use for your tax refund is to build or start an emergency fund. Although this doesn't sound like a fun way to use the money it is very necessary. You never know when you need a set of tires for your car. Or what if you were to get sick and miss too much work? An emergency fund is there for the unthinkable. Not having one or having one with very little in it is a financial disaster waiting to happen. Invest in the stability of your financial future by putting your refund into a savings account.

Finally, put your tax refund into your retirement account. If you were to put an average tax refund into a retirement account every year of your working career you could easily save $50,000 or more. That money goes a long way after you are no longer earning a paycheck each month. Consider it an investment in the future you. Make sure you have a nest egg to relax during those golden years.

Smart money management isn't always easy, or possible. Sometimes hard times fall on good people through no fault of their own. If you are struggling with debt, contact a Sacramento bankruptcy lawyer to discuss your debt relief options.