Tax season can be a stressful time for people. But some may wind up looking forward to a refund. If you think you might be getting such a windfall, start thinking about how best to use it. According to the Internal Revenue Service, in 2024, the average refund was $3,138.
If you’ve regularly been getting refunds, talk with a tax adviser on how to adjust your tax withholdings, so you’re not giving up your money to begin with.
Instead of splurging on travel or other non-essential activities, financial pros recommend these five smart ways to put a refund to work for you:
- Create a rainy-day fund for emergencies
- Add to existing savings like a CD, money market, or high-yield savings account
- Pay down high-interest credit card debt or loans
- Increase retirement accounts like an IRA
- Invest in life insurance, home improvements, or a side business
Also, don’t put all your eggs in a single basket. Spread the money in various ways to get the most future return from it. After all, you’re not getting a gift from the government. You’re just getting your hard-earned money back.
Council of Seniors Works to Give Seniors More Peace of Mind
Extra retirement income helps ease stress on seniors. That’s why here at Council of Seniors, we’re working hard to get Congress to pass The SAVE Benefits Act. Because the annual Social Security cost-of-living adjustment (COLA) hasn’t kept up with inflation in recent years, this legislation is a must. If we succeed, the amount of $581 will be returned to eligible seniors.
Please sign our petition to join with other Americans who want action now. Your participation can make a real difference in returning this money to seniors.
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