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You have worked hard all year, contributed towards your Social Security, Medicare, Federal and State Withholding. Time is going fast and before your realize it, it's the same time of the year to file your income tax refund to see whether you owe any more taxes or you get a refund. You filed your tax refund and Wonderful, you are getting a refund back. Now what! how do you spend is an excellent question.

Here are few things that I consider are very important before you start spending your income tax refunds.
1) Try to keep yourself out of refund loans, because they have very high fees. Remember, this is not your refund, this is a loan towards your refund.

2) Do you have debt? If so pay of the high interest bearing debts (Loans, Credit Cards e.t.c.).

3) Do you have kids? If so, then consider opening an accounting such as coverdall to fund their education. By doing this you are not only helping your kids but also yourself. Remember, you as a parent is still responsible to contribute to their education if not all, and, second this will give your kids good start in their career with less amounts of education debts.

4) Is your refund very significant that you can benefit by investing? If so, then consider various investing strategies such as real estate, bank cd's, or stocks (if you can take risks).

5) Do you have a need for any new vehicle? If so, evaluate your needs first before buying. Consider buying a used vehicle.

6) upgrade your home, if you own. Improvements in kitchen and lawn increases the value of your property.

7) Save some for emergencies.

8) Last but not least, help your family, friends and community. You probably won't get anything in return except blessing and a heart full of satisfaction.

Try not to borrow. As you are increasing your debt even having a refund. Remember the saying "Do not spread your legs more than your means"

Learn more about this author, Ashraf S. Mehdi.
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