US EditionGetting a Bigger Tax Refund? Here's How to Use It Wisely
Experts recommend using larger 2026 tax refunds to pay down credit card debt, which nearly half of holders carry at about 20% interest, and to build emergency savings.
- Taxpayers this year may see refunds $300 to $1,000 higher, according to the nonpartisan Tax Foundation.
- Economic analysis cited by the Tax Foundation shows recent tax-law changes cut liabilities while paycheck withholding was not fully adjusted.
- Bankrate research shows nearly half of credit card holders carry a balance, and APRs are around 20%, as Hamrick said, 'Credit card debt is the most expensive form of debt that most people have on the books'.
- Financial experts recommend splitting a larger 2026 tax refund between credit card debt and emergency savings, as the IRS advises, to reduce high-interest balances and build savings.
- It could be worth adjusting your withholding ahead of next year's tax season, especially after major life events such as marriage, divorce, or income changes, and once debt is controlled, investing may be appropriate.
22 Articles
22 Articles
Bigger Tax Refunds Coming: Here’s Average Amount, How Americans Plan To Use Them
Americans are receiving larger tax refunds this year, and new findings are revealing what they plan to do with those extra dollars.The average household expected to receive between $3,500 and $4,000, according to CBS News.The increase was largely due to the One Big Beautiful Bill Act (OBBBA), which introduced retroactive tax cuts for 2025, including deductions for overtime, tips, and auto loan interest.Recent surveys from the National Retail Fed…
IRS Releases New Form Taxpayers Will Use to Claim Key OBBBA Tax Deductions
The IRS has published Schedule 1-A and its related instructions for tax year 2025 so eligible taxpayers can claim tax breaks on tips, overtime, and auto loans, as well as the enhanced deduction for senior citizens, introduced in the One Big Beautiful Bill Act.
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