![Tyson Foods Plant [Photo: Food Manufacturing]](https://southarkansassun.com/wp-content/uploads/2023/08/iStock_1185520857__1_.5e441daa51cca-600x337.jpg)
![Silverado Senior Living Management Inc. [Photo: Los Angeles Times]](https://southarkansassun.com/wp-content/uploads/2023/10/download-6-4-600x337.jpg)
![China's Wuhan Institute of Virology [Photo: Nature]](https://southarkansassun.com/wp-content/uploads/2023/09/d41586-021-01529-3_19239608-600x337.jpg)
There are strategies to maximize tax refunds and enhance financial well-being.
Photo: Google
Using Your Tax Refund to Eliminate Debt
As Tax Day is getting nearer, consider using the tax refund to pay off debts. According to FingerLakes1, it is wise to use tax refunds to tackle outstanding debts as this is an opportunity for financial stability.
A recent survey from Lending Tree shows that a significant number of people are already planning to do this strategy because of ongoing inflation and increasing cost of living. Lending Tree’s senior economist, Jacob Channel, noted that inflation growth is slowing but expenses remain high. This usually leads to many individuals to accrue debt.
READ ALSO: State Tax Credit Of FILM TV, Might Reduce
Maximizing Your Tax Refund with High-Yield Savings Accounts
Reports from the IRS show that the average tax refund that an individual could receive has increased to $3,207. It’s a 2.1% increase from 2023. With this, using the tax refund for high-yield savings accounts is a wise strategy too.
Deposit your tax refund into accounts with high-interest rates so your savings will grow over time. An example of this is investing a $2000 tax refund to a high-yield account with a 5.25% annual yield plus adding in a contribution of $25 monthly will result in more than $250 interest for two years. It is more than what the standard bank account can provide for you.
READ ALSO: Philadelphia City Council Tackles High Tax Preparation Fees – Advocating Free Assistance For Low Income Residents!
