By now most of you who were getting a tax refund this year have probably already received it. So, the question has to be asked: what did you spend it on? Since the average federal tax refund is around $3,000 most people are getting a reasonable chunk of money. Sure, we can argue that it would be better to adjust your tax withholding so you don’t hand over so much money to the IRS with each paycheck, but the fact of the matter is many people are getting returns and they have to do something with that money. Of course, there are both good and bad ways to spend a tax refund.
So, did you put your tax refund to good use or was it some mad money that you used to stimulate the economy? We received a bit of an unexpected tax refund this year but I have to admit, we had no exciting plans for it. About a third of it went into savings, a third of it paid off the balance on a zero percent financing deal that was coming due on the lawn mower we bought last year, and another third went into our rental property. So, what did you spend yours on?
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.