Many taxpayers in the U.S. count on their tax refund to help them cover debts and big expenses every year. Unfortunately, this means you can end up in big trouble financially if you don’t get a tax return.
However, you have some options if you didn’t get the tax refund you expected. Let’s go over your options if you were counting on a tax refund and didn’t get one. You can also focus on reasons your tax refund might have been smaller than expected in 2019 to prepare for 2020.
Take a Deep Breath
No one wants to discover they’re going to be short financially. Lots of taxpayers expect hundreds or thousands of dollars from their tax refunds. This means that the loss of your refund can have a big impact on your finances.
Slowing down and looking at your financial options can keep the situation from feeling overwhelming. The first thing you need to do is sit down and look at your finances. Ask yourself:
- What Were You Going to Use Your Tax Refund For?
- How Much Money Were You Planning to Get?
- Did You Have a Plan to Spend All the Money You Were Expecting?
This can give you an idea about how much funding you need to come up with to replace your tax refund. Sometimes, it turns out you didn’t need the refund as badly as you initially feared.
Look into Your Other Options
A big tax refund check can really help when it comes to paying bills. But you have other options to take care of debt. Arrange your bills in order of priority. Plan to pay your high-interest debt first and then look at how much you won’t be able to pay with your normal paychecks.
You may be able to get help covering these excess expenses by:
- Taking Out a Loan with a Credit Union or Bank
- Thinking About aHome Equity Line of Credit (HELOC)
- Considering a Credit Card Balance Transfer
These loan and finance options can work very well if you have good credit. If your credit isn’t in perfect condition, you still have options to cover high expenses. You might want to consider taking out a:
- Payday Loan
- Car Title Loan
Payday loans and online car title loans can provide you with fast funds, even if your credit is less than perfect.
Plan for Next Year’s Tax Return
The changes to the tax laws in 2019 aren’t just going to revert. If you didn’t get a tax refund this year, you may need to start planning on going without next year, as well. However, you may be able to make some adjustments to your withholdings at work to secure a refund in 2020.
You might also be able to increase your refund by:
- Contributing to a Health Savings Account (HSA)
- Contributing to a Flexible Spending Account (FSA)
- Boosting Your Charitable Donations
Explore Your Options if You Didn’t Get the Tax Refund Check You Expected
Many people in the U.S. didn’t get the tax refunds they were expecting in 2019. You may be able to handle expenses that you expected to cover with your refund check by taking out a bank loan, a payday loan, or a car title loan. You can also start planning to secure your 2020 tax refund now so you’re ready for next tax season.
