6 Things To Do With Your Tax Refund Other Than Spending It (2024)

Goodness. I know that I can’t be the only one who is tripping out that spring is literally days away. Even as I’m typing all of this out, I’m trying to figure out where January and February went because it has pretty much all been a blur. Anyway, since time couldn’t care less about what we think of it (LOL), if there’s one thing I’m learning, the older I get, is to simply accept that it’s gonna move, sometimes faster than I would like — and so, I need to prepare for it: mind, body, and spirit.

6 Things To Do With Your Tax Refund Other Than Spending It (2024)

FAQs

What are two ways you can use your tax refund wisely? ›

Here are five ways you can put your tax refund to good use:
  • Put it towards emergency savings. ...
  • Repay student loans. ...
  • Pay off credit card debt. ...
  • 4. Make extra payments on your mortgage. ...
  • Use the money to earn more money.
6 days ago

What do most people do with their tax return? ›

Almost 50% of U.S. taxpayers are expecting a refund, a Lincoln Financial survey found. 40% of survey respondents want to save their tax refund for expenses and emergencies while 37% plan to pay off debt. Only 13% plan to save for retirement, despite the average Gen X household only having $40,000 in retirement savings.

What is a smart thing to do with your refund? ›

Use your refund to purchase energy-efficient appliances, such as a dishwasher, dryer, or refrigerator, which can save you money all year long. Start a college savings plan. If you have children, consider using the funds to open an Education IRA or 529 college savings plan.

How should I use my tax refund? ›

Ways to Use Your Tax Refund
  1. Build Up an Emergency Fund.
  2. Make a Payment on Your Debt.
  3. Boost Your Retirement Fund.
  4. Support Your Side Hustle.
  5. Save It for a Rainy Day.

How to get $7,000 tax refund? ›

Requirements to receive up to $7,000 for the Earned Income Tax Credit refund (EITC)
  1. Have worked and earned income under $63,398.
  2. Have investment income below $11,000 in the tax year 2023.
  3. Have a valid Social Security number by the due date of your 2023 return (including extensions)
Apr 12, 2024

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

What income gets the most tax refund? ›

According to Lending Tree, high-income taxpayers in the $500,000 to $999,999 bracket received the biggest total dollar amount refund—an average refund of $35,128 in tax year 2020.

How do people get a lot of money on tax returns? ›

The amount of your tax refund depends on several factors including filing status, deductions and credits. Itemizing tax deductions and claiming lesser-known credits are among the ways to boost your refund. Tax deductible contributions can be made to traditional IRAs and health savings accounts up until tax day.

What is the highest tax return ever? ›

Ramon Christopher Blanchett, of Tampa, Florida, and self-described freelancer, managed to scoop up a $980,000 tax refund after submitting his self-prepared 2016 tax return. He also allegedly claimed that he earned a total of $18,497 in wages — and that he had withheld $1 million in income taxes, according to a Jan.

What should I say to get a refund? ›

Write a brief email explaining the problem and say what you want, whether it's a refund or apology, and if you're still not getting anywhere, try Resolver.

How do I get a refund without being rude? ›

Remain polite but firm.
  1. Avoid personal insults or any complaint that you spend a lot of money at the store. ...
  2. Calm yourself, if necessary. ...
  3. If possible, try to show empathy to the person on the other end of the phone. ...
  4. You might strike out and not get a refund.

Is it possible to get 20k back in taxes? ›

Keep in mind there's no limit to the size of a tax refund. You can even get a bigger tax refund than what you already paid in taxes.

What not to do with tax refund? ›

7 Ways to Spend Your Tax Refund That You Should Avoid
  • Unneeded Material Things.
  • Casinos.
  • Don't Put It in Your Checking Account.
  • Don't Use It on a Car You Can't Afford.
  • Refund Advance Loans.
  • Paying Off Credit Cards You'll Max Out Again.
  • Excessively Expensive Vacations.
  • Tips for Using Your Refund Wisely.
Mar 30, 2022

What to do with tax refund Dave Ramsey? ›

As long as you have $1,000 in a starter emergency fund, you should use your tax refund to pay down your debt. But if you're out of debt and have 3–6 months of expenses saved for your fully funded emergency fund, use our investment calculator to see how your tax refund can do great things for your retirement account.

Should I use my tax refund to pay off credit card debt? ›

It can save you money on interest

In general, using your tax refund to pay down debt, especially higher interest credit card debt, makes sense from a long-term perspective as it will help save you from incurring future interest charges.

Can I put my tax refund on my wisely card? ›

Yes, and it's easy! Once your tax refund is added to your card, register or log into the myWisely mobile app6 or at mywisely.com. Tap or click “Future” and start saving.

Can I send my tax refund to my wisely card? ›

Yes. If you pass a validation process, the primary cardholder can direct deposit income from second jobs, your tax refund, or other government benefits onto your Wisely Pay card. 2 Enter your account and routing numbers into the applicable direct deposit form or hand it to the HR person responsible for your pay.

What are two options for receiving your refund if one is due to you? ›

The refund process

While you can still receive your refund in the form of a paper check, there are several advantages to direct deposit. Not only is it faster, direct deposit is also more secure. Refund checks sent through the mail can be lost, stolen, or returned to the IRS, if undeliverable.

What are the different ways you can receive your refund money from the IRS? ›

You can use it to deposit your refund into one, two or even three accounts. Even if you don't have a checking account, there are other options available for direct deposit. Direct deposit is now also available for returns filed after their due date. Eight out of ten taxpayers get their refunds by using direct deposit.

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