IRA

• Individual Retirement Accounts (IRAs) are a great way to invest your tax money. Not only does investing in an IRA contribute to your future, it is also tax-free until you withdraw the funds. Contributing to an IRA allows you to claim tax reduction when you file year on year, as you can claim 10 percent to 15 percent back of what you invested into the IRA. A good idea is to use anything you deducted from your taxes as an investment back into the IRA. The great thing about IRAs is that you only get taxed when money is taken out, so year on year, this does not need to be a worry.
  
  

Stock Market

• Now is a great time to invest in the stock market, and using deductions and tax refunds to do so is a great idea. Taxes on selling shares is 30 percent if stocks are sold in the first year, so holding on to stocks for more than a year is a better idea, as the taxes on gains is dropped to 15 percent in the second year.
  
  

Health savings accounts

• A great way to invest your taxes is to move any reductions or refunds into health savings accounts. Not only do these accounts provide you peace of mind in case of medical emergencies, but they are also tax-free investments.