Expert tips to make the most of your tax refund

Two out of three taxpayers received a refund last year
Published: Mar. 21, 2023 at 4:10 PM EDT
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InvestigateTV - More than 63 million taxpayers have already filed their return this year, according to the Internal Revenue Service (IRS). Around 80% of those filers should expect to receive a refund of just under $3,000, on average.

Nathan Grant, a senior finance industry analyst with MoneyTips, said if you’re expecting to receive a refund from the government, you should start planning on how you’re going to spend the money now.

Grant recommended using the money to pay off high interest debt, like a credit card, or to replenish your emergency savings account.

Another option, Grant added, is using the money for a home improvement project.

“It might prevent future headaches, because it might be one of those things that as you put it off, the risks get higher,” Grant said.

Grant said it’s okay to let yourself do something fun with your tax return, or maybe use some of it to buy a “want,” instead of a need.

“Sometimes it’s nice to use a tax refund for something like fun and travel,” he said. “Or getting, maybe like replacing a phone or a computer that’s old, where it’s like, ‘yeah, you need to replace it,’ but it’s kind of more of a want than a need.”