It is often said that April 15th is one of the most dreaded days of the year as that is the day most American’s must “pay the tax man.” Even though almost 75 percent of all filers receive a refund, no one enjoys the process of gathering the information, filling out tax forms and stressing that they may have made a mistake. There are a few things you can do to minimize your stress at tax time and some helpful tips so that you get the most out of your refund.

At the end of December, create a file for all the tax documents you need to accumulate. This may be a manila envelope, a file folder or even a digital file saved to your computer. As tax forms begin to arrive from employers, banks and mortgage companies, separate them into categories for income, deductions and business expenses.

From year-to-year, your tax information does not change significantly. By looking over previous tax returns, you can check off things as you get them to be sure nothing is missed. Often, online tax software will save your information each year so all you need to do is sign in and look over what income, deductions and business expenses you had the year before.

Although the IRS is trying to streamline forms and reduce how long it takes to file taxes, it can still be a daunting task. Now, you can use an online tax prep service that will guide you through each step. They make it less likely you will miss something and most allow you to file electronically at low cost. There are even online services that offer free tax returns if your tax filing is relatively simple. If even the online services seem too complicated for you, there are many tax preparation companies available that allow you to bring your documents to them and they take care of the rest.

You now have options for receiving your tax refund. There is still the option of having a paper check mailed to you although most experts caution against that as it is not a safe method. The safest method for receiving tax refunds is to have it directly deposited into a checking or savings account. With some online tax services, you can have the deposit placed on a debit card that you can use as cash for purchases, although these may require you to pay a fee.

The average tax return is just under $4,000, an amount that can be significant for the average family. Unfortunately, many people don’t plan well when it comes to their refunds. In fact, around 25 percent of those receiving a refund said they would use it for everyday expenses even though the average American has only $20,000 in retirement savings along with $15,950 in credit card debt. One of the best ways to use a refund is to pay down debt. There are two strategies you can use to pay down debt. Either pay off the smallest debts or apply the refund to the debt with the highest interest rate. Getting rid of small debt can give you a psychological boost although paying down the debt with the highest interest will save you over time.

Although spending your entire refund on a trip to Cancun sounds amazing, it is much smarter to plan for your permanent vacation – retirement. If your income is below a certain amount, you can contribute to a Roth IRA up until April 15. You may also want to consider setting up a retirement investment account or place the refund in a college savings account if you have young children. If you already have these accounts set up and regularly deposit into them, you could use your tax refund to create a dream vacation fund, saving for an exotic vacation in the future, like Paris or Italy.

The average car payment is almost $500 today, a lot of money to spend out of your income each month. Although your tax refund may not be enough to buy a brand new car with all the bells and whistles, it may be enough for you to purchase a good, used car without the need to take out a loan. If you already have a car with a payment, consider paying it off and using your car payment towards other debt or savings. It is also possible to reduce your monthly car payment by using your refund as a down payment.

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