According to TurboTax the average refund for early filers is greater than those that file on the April 15th deadline. Early tax filers get an average of $2,869 in tax refunds versus $2,753 for those who file later. (see here) For most of us, that's a lot of money. So what are you going to do with your refund? Well, first and foremost, I'd say adjust your withholding. Many of us like having that refund check every year. Some of us even consider it a savings tool. That kind of thinking, though, is ridiculous! Have you checked to see how much Uncle Sam pays you in interest for that money? Zero, zilch, nada! So why pay extra in withholding when you don't have to? If you have trouble saving, try setting up an automatic savings plan with a high yield savings account or make automatic payments to your IRA account. (see my Recession Survival Guide for more tips) After that, I'd suggest putting your refund to good use. Don't splurge on something you really don't need. Here are some tips on what to do with your income tax refund.

1. Pay off debt: This is a no-brainer. If you have credit card debt, pay it off first. Then, cut it up and never use it again! (maybe a little extreme, but you know what I mean)
2. Spend it on smart resources: Get a warehouse club membership. Examples include Sams, Costco, BJ's, etc. If you're investing your own money, subscribe to some newsletters, publications, or services that you might not normally subscribe to. Subscribe to the Wall Street Journal (tip: this is also a deduction for next year) Buy a do-it-yourself book to make those repairs you've been putting off. (tip: buy it used at Alibris and use a coupon on your purchase)
3. Go Green: Look for home improvement options that can improve energy efficiency or reduce your utility bills. Check out our Go Green savers page where we not only offer tips on energy savings but also help you save money on making those improvements with exclusive "Go Green" coupons.
4. Invest in your future: If you have an IRA plan, make a contribution to it. The more money you save now, the more you will exponentially have later. If you don't have an IRA plan, consider opening up one. I have my IRA plan through E*Trade. It was simple to set up and took a matter of minutes.
5. Invest in your kids' future: To quote Suze Orman, "Take care of yourself first, then take care of your kids' future." If you're already putting money towards retirement, put some of your refund towards your kid's college fund. The 529 plan is also a tax deduction.
6. Refinance your house: The interest rates are still remarkably low. If you plan of staying in your home for the next 5 years or so, refinance your loan. I suggest using LowerMyBills to find the cheapest lender.
7. Quit a habit: Are you still trying to quit smoking? Get some help from Drugstore.com and save money while doing it. (tip: check out our coupon section for a $5 printable coupon for Nicorette)
8. Invest in yourself: Learn a new skill or hone your existing skills. Example: Software experts are always in high demand. Check out Total Training for some great software training aids.
9. Take a much needed vacation: I suggest either a cruise or an all inclusive resort if you want to go somewhere exotic. For more travel tips check out our Online Travel Savings page.
10. Start a new business: Have you dreamed of starting your own business but have put it off because you didn't have sufficient capital? Use your tax refund money to help start a new business. Plus to help you save money on your business expenses, CouponShack.com has a great Small Business Savings Center that's filled with tips and coupons.

The most effective way to save money is to take an active role in managing your personal finances. It seems like a no brainer, but when budgets are tight, we just cut spending on the obvious and stop there. What we miss out on is the many other opportunities to reduce our expenses. When taking an in depth look at my personal finances, I suddenly realized the many opportunities that were out there to save even more money. In doing so, I thought I'd share some of these tips with you.

1. Personal Finance Software - Get help. Use personal finance software like Mint.com. It's a free tool that allows you to see all your financial accounts in one place. You can categorize all your expenses in one place so you set up or adjust your budget to reach your financial goals.
2. Take Inventory - Look around the house and write down everything that you purchase on a regular basis. You'd be surprised at some of the stuff that you can buy cheaper online. Take for example a 12 pack of Cottonelle Double Roll 2 Ply Toilet Paper, which can be purchased at Drugstore.com for just $10.49.
3. Recurring Purchases - Look to save on items you have to purchase on a regular schedule like contacts. You can save as much as 70% on with auto-refill purchases from stores like 1-800-Contacts
4. Save on Gas - If you have a membership club such as Costco or Sams Club nearby, join the club and purchase your gas from there. The savings in gas alone pay for the membership.
5. Track Deductions - Keep track of anything you might be able to deduct. Buy a receipt scanner (available at Newegg) to help keep track. It's simple to use and scans the receipt right into Quickbooks.
6. Record Medical Bills - You'd be surprised at what you might be able to deduct. To help, try using Quicken Health Expense Tracker. All you have to do is enter your medical bills as they come in, mark them when they are paid, and Quicken will keep track of what items you can deduct. From there, it's just an easy import into TurboTax.
7. Take an Active Role in Retirement - If you don't have an IRA account, open one up. Sites like Etrade offer a lot of easy to use tools for all types of investors. Taking an active role not only allows you to follow investment trends more closely, but also can help you avoid high management fees.
8. High Yield Savings - Don't just keep your emergency fund money in the bank. At least put it in a high yield savings account such as HSBC Direct. (currently 1.35% APY)
9. Keep Track of Your Credit Score - Actively monitor your credit score and always look for ways to improve your score. Sites like myFICO offer some really great credit tools such as credit simulators and credit alerts.
10. Personal Loan - If you can, get a personal loan and consolidate your credit cards into that loan. This will at the very least lower your interest payments. (and stop using that credit card) Check out LowerMyBills for loan options.

It's tax season again. I know, I love this time of year too. (joking) For most of us, it's something we dread doing. I don't know about you, but I usually end up throwing my hands up and taking my documents to Liberty Tax. This year, however, I'm seriously thinking about doing it myself. Online services like TurboTax and H&R Block At Home are making it easier and easier every year. It really makes sense to do it yourself if you have multiple forms to fill out. You could end up saving several hundred dollars in tax preparation fees. As I look through my tax documents, I thought I might highlight some of the commonly used or missed tax deductions because we all how important it is to find every penny's worth of deductions.

1. Points on refinancing - 2009 was the year of refinancing. Interest rates were at historical lows making it almost a no-brainer to refinance your house. Just don't forget that you can deduct your fees and any points you pay towards refinancing.
2. Home buyer tax credits - You can get up to $8,000 in tax credits for any home purchased between Jan. 1, 2009 and Apr. 30, 2010. In addition to this, there is also a tax credit of up to $6,500 for qualified move up/ repeat home buyers from Nov. 6, 2009 to Apr. 30, 2010. For more information click here.
3. Alternative Fuels and Vehicles - There are tax credits of up to $4,000 for the purchase of any alternative fuel vehicle, including hybrids and golf carts (I know Pennsylvania has a tax credit of $4325 for the purchase of golf carts). In addition, there are also tax credits for any alternative fuels used. This includes Ethanol, Biodiesel, CNG, Propane, and Hydrogen.
4. Energy Savings Home Improvement Credit - If you made any improvements to your home that resulted in energy savings, you may be eligible for credits up to $1,500. This includes the purchase of such items as skylights, outside doors, windows, pigmented roofs, high-efficiency furnaces, water heaters and central air conditioning units. For more information, click here
5. Health insurance premiums - Any health or medical insurance premiums paid are considered deductible. Also, many other health related expenses are also tax deductible such as fees paid to doctors and prescription drugs. For more information, click here
6. Higher education expenses - I know many people who chose to go back to school after being laid off. Don't forget that all the expenses associated with higher education are also tax deductible. You could get as much as $4,000 in above the line deductions.
7. Student-loan interest paid by Mom and Dad - If you are not claimed as a dependent, yet your Mom or Dad, pays your student loans for you, you can actually claim the tax deduction yourself. This could mean a deduction of up to $2,500.
8. Child-care credit - If you have a child under the age of 13 and have child care expenses, you could also qualify for a tax deduction of up to $3,000 for one dependent or up to $6,000 for 2 or more dependents. These expenses include costs for daycare, nannies, and help for disabled children.
9. Investment and tax expenses - If your investment or tax expenses exceed 2% of your adjusted gross income, you can also deduct most of these related expenses. These include subscriptions to publications, brokerage fees, annual fees, safety deposit box fees, and even long distance fees to your broker.
10. Tax preparation expenses - Last, but not least, don't forget that the tax preparation fees (whether you do them yourself or not) are completely tax deductible.

Another year is drawing to a close and with that comes another set of New Year's Resolutions. We make them every year, yet most of us never stick to them. That's why my resolution for 2010 is to make a resolution and stick to it. It's bad luck to tell someone what your resolution is so I'll keep that part a secret. I will give you a hint, however. It's one of the 7 New Year's Savings Resolutions listed below. They're in no particular order, just 7 ideas for you to think about for 2010. I wish you the best of luck in keeping your resolutions next year! Here they are:

1. Save on gym costs. Workout at home. If you can afford the upfront cost of a home gym it'll save you a lot of money down the road versus a gym membership. Price compare and look for deals on older models. Check out places like Workout Warehouse for great deals on top brands like Proform and NordicTrack. Bowflex is another great brand. Just be patient and wait for a coupon to be offered from them.
2. Save on weightloss. Do it online. One of the most popular weight loss programs around is Weight Watchers. Did you know that you can do it online? By doing so, you can save 25% versus their regular program.
3. Save on energy. Become more energy efficient. I've dedicated a whole section of CouponShack.com to being more energy efficient. Just check out the Go Green section for some really helpful tips on saving money and being more energy efficient.
4. Save on insurance. Review your Insurance Policies. Now is the best time to look at all your insurance policies. If you have too much coverage, scale it back. If you haven't combined your insurance policies, try doing so as many insurance companies offer a discount for this. If it makes sense, raise your deductible. Finally, shop around. See if you're really getting the best deal. Check out sites like InsureMe where you can get a free insurance quote from multiple providers.
5. Save on your expenses. Manage your personal finance. Check out some of the free tools offered by Quicken. They recently acquired Mint.com which offers tons of free personal finance tools. Buy the full version and it integrates seamlessly with TurboTax.
6. Save on tax preparation and filings. Do it yourself. If you can, try doing your taxes yourself this year. Sites like TurboTax and H&R Block really make it easy to do it yourself. Heck, if it's just a simple return, TurboTax will do it for free!
7. Save on purchases. Become a coupon clicker. Make a more conscience effort to look for coupons first before making a purchase. Even if you already use coupons to some degree, take a moment and re-evaluate what you are doing. See if you can develop better coupon habits. Monitor your favorite stores or brands for coupons. Pull the trigger on the purchase when a coupon is available. If you don't have a CouponShack.com account, sign up for one and let us monitor the coupons and deals for you!