21 Things to Do with Your Tax Refund

21 Smart & Fun(ish) Things to Do with Your Tax Refund

It’s tax seasons (just in case you missed the memo when you started receiving all those tax papers in the mail)! Tax season often means tax refunds. No matter how big or small your tax refund is, you worked hard for that money, so put it to work for you.

The average tax refund is $3,000, but even if you don’t get back that much, you can still put the refund toward something that will work hard for you.

13 Smart Things to Do with Your Tax Refund

You can put your tax refund to work by trying to improve your financial situation now or in the future. You can:

  • Chip away at some of that credit card debt;
  • Make an extra mortgage payment;
  • Pay off a student loan;
  • Build up your emergency fund;
  • Put it in a college fund;
  • Donate it;
  • Go back to school;
  • Put it in a savings account;
  • Add it to your IRA;
  • Play the stock market;
  • Make home improvements;
  • Make your home more energy efficient; or
  • Get your car fixed.

7 Fun(ish) Things to Do with Your Tax Refund

If you don’t have any pressing bills to pay or debt to take care of, you can have a little more fun with your tax refund. You can:

  • Splurge and buy yourself something nice;
  • Upgrade your technology;
  • Take a trip;
  • Start a new hobby;
  • Put it toward a new car;
  • Stock up on Christmas and holiday gifts;
  • Spend a week at the spa; or
  • Join a gym.


Your tax refund is your money; the IRS just borrowed it for a few months. When you get it back, spend it however you like. You can put your refund toward something that will help your financial situation, or you can have some fun with it. If your tax refund was too high, consider reviewing your W-4 because you might have withheld too much during the year.