Average Tax Refund – Here’s What To Do With That Money!

Here are some options you could take if you are thinking of what to do with your average tax refund.

Paying off debt, traveling, or saving are things you could do with your average tax refund. (Photo: Money)

What To Do With Your Average Tax Refund

Average tax refund have been increasing in the past few years and are continuing to do so according to the latest data from the IRS.

The average tax refund as of late February is $3,213, up 4.3% from last year.
Some states have a higher average tax refund than others, with Wyoming, Massachusetts, Florida, and Washington, D.C. topping the list.

Residents of Maine, West Virginia, and Vermont received the smallest average tax refund.

Taxpayers have various options on how to use their average tax refund, including paying off debt, saving, or traveling.

According to a published article by SmartNews, even with a modest or average tax refund, travelers can plan trips within the U.S. or abroad. For example, a solo traveler with an average tax refund of $3,144 could visit Cartagena, Colombia.

Options for affordable travel destinations include Dublin, Reykjavik, Sedona, and Key West, with round-trip flights costing as low as $200 to $800.

Use Your Average Tax Refund Wisely

In a published article by the Christian Post, receiving unexpected funds like tax refunds can be exciting, but it’s important to use them wisely.

The average direct deposit refund amount has decreased, which can be seen as good news as it means less money was overpaid in taxes.

It’s suggested to adjust your tax withholdings to receive less in refunds each year and to use the money for important purposes like paying down debt, building an emergency fund, investing in your health, career, or real estate.

It’s important to be intentional with how you use your tax refund and not spend it frivolously.

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