Use that needed refund wisely.

• Position: Tax refunds

Tax season is nearly over, and millions of Americans will receive checks in the mail in the coming weeks from the Internal Revenue Service. Tax refunds can help you reach your financial goals and build a cushion against future expenses. The National Society of Accountants, Alexandria, Va., advises taxpayers to give some thought to how to use your extra cash to improve your financial situation before you spend it.

To put things in perspective, remember that a tax refund is not some sort of magical windfall--it is your money. Be shrewd with it and try one or more of these money-smart suggestions:

Start an emergency fund. This money could be used for living expenses for several months in the event of a major crisis, like job loss.

Pay down your debt. If you can knock out--or knock down--the balance of even one high-interest credit card, you are making money.

Max out your retirement accounts. Contribute to employee retirement accounts up to the employer match.

Fund your IRA. Did you know that you can have the Internal Revenue Service direct deposit your refund into your Roth, Traditional, or SEP-IRA? While it may be too late to do that this year, it never is a bad idea to write a check to your IRA custodian when your refund arrives.

Prepay your mortgage. Send your refund to your mortgage lender. You will realize savings over the life of your lean, and own your house outright sooner than expected.

Refinance your mortgage. While...