Tax refunds leapt more than 10% over this time last year, nearing $3,700 on average, according to the Internal Revenue Service. Meanwhile, visits to the IRS website are surging as tax season winds down, with just a month left to file.
IRS.gov visits reached 321.5 million last week, the IRS said. That’s up nearly 53% from the same period in 2025 as taxpayers zero in on their obligations and any potential benefits in an especially complex year for taxes, since President Trump’s One Big Beautiful Bill Act introduced new deductions and expanded others.
The average federal tax refund, meanwhile, has hit $3,676, a 10.6% increase from the same week last year, the IRS said. Tax refunds were expected to be larger this year, and experts noted in a recent Bank of America Global Research report that returns may have temporarily helped put a slight dent in the yawning spending gap between lower- and higher-income consumers — part of the “K-shaped” economy — in February.
Learn more: Your tax refund may be bigger this year. Here’s why.
Still, “so far, Bank of America deposit account data suggests that higher-income households have received larger increases in their tax refunds compared to other income cohorts,” the report said.
As of last Friday, the government had processed nearly 44 million refunds, with almost $161 million returned to taxpayers. The deadline to file is April 15.
Been meaning to put away some savings, but keep getting sabotaged by unexpected bills? A tax refund is the perfect seed money for an emergency savings fund.
Emergency savings, sometimes called rainy day funds, can help support your family during a job loss, which often involves not just the loss of income but also healthcare. Or it could front money for unexpected costs, such as car or home repairs.
How much should you have squirreled away in an emergency fund? Any cash is better than nothing, but experts encourage putting away savings equivalent to three to six months’ worth of expenses.
Read more: What is an emergency savings fund?
Dumping a sizable portion of your refund check into a savings account to keep it safe from impulse buys isn’t a bad idea. But it’s important to remember that not all savings accounts are created equal when it comes to interest rates.
You’ll get more bang for your buck by leaning into high-yield savings accounts, money market accounts, or a high-yield CD (certificate of deposit). While those high APYs are a big benefit, there are some drawbacks, such as restricted access to your funds and scheduled minimum deposits. Understanding how these accounts work is crucial.
And be sure to choose a bank that’s FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) is a government agency that insures your bank deposits up to $250,000 per depositor in case of bank failure.
Read more: High-yield savings account vs. CD: Which is right for you?
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One of the most effective ways to use your refund check is to pay down debt. Eliminating your credit card debt, paying down medical bills, and tackling any other debts with interest in double-digit territory is a solid investment in your financial future.
If you don’t have high-interest debt, you can make extra payments on student loans, a car loan, or even a home loan that you might not otherwise be able to afford.
Read more: The best ways to pay off credit card debt
Thanks to the magic of compound interest, putting your refund check into a retirement account is an investment strategy that pays serious dividends. Adding $3,138 (the average refund in 2024) to a typical IRA could turn your refund check into as much as $25,000 after 25 years.
However, before you decide to use all your extra money to pad your retirement savings, double-check the contribution limits for a traditional IRA, Roth IRA, and 401(k). If you’ve already contributed the maximum, you may want to add funds to your health savings account (HSA) instead.
Worried about protecting the gains of your retirement plan as you approach 65? Experts recommend pulling 5-10 years of living expenses into more accessible high-yield savings accounts when you reach retirement age and shifting some of your asset allocation into the relative safety of high-quality bonds. Reducing risk in your retirement portfolio can shield your immediate retirement income from potential volatility in the stock market.
Read more: These are the new traditional IRA and Roth IRA limits in 2026
Take time to carefully consider your personal finance goals and put your refund to work. Some possibilities include: