8 Smart Ways To Use Your Tax Refund in 2024 (2024)

FAQs

8 Smart Ways To Use Your Tax Refund in 2024? ›

Maximizing your 2024 tax return might mean opening a CD, contributing to a high-yield savings account, or investing in one or more ventures. Exploring your options can help you make the best decision based on your circ*mstances.

Maximizing your 2024 tax return might mean opening a CD, contributing to a high-yield savings account, or investing in one or more ventures. Exploring your options can help you make the best decision based on your circ*mstances.

“Arguably, the first two priorities for additional funds should be paying off high-interest debt, such as credit card balances or personal loans, which can save you money on interest payments in the long run, and establishing an emergency fund to cover unexpected expenses like medical bills or car repairs,” said Laura ...

You could end up with a $10,000 tax refund if you've paid significantly more tax payments than you owe at the end of the year.

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

In total, 67% of taxpayers say they expect a refund this year, a recent Bankrate survey found. So what do Americans plan to do with that money? Nearly 30% of taxpayers receiving refunds plan to put theirs into savings, Bankrate found.

But they really are part of your earnings, the experts said, and they advise you to plan accordingly. "If you were going to spend all your raise, then that's probably what you should do with your tax refund. If you were going to put some more in your 401(k) or some kind of savings, then that's what you should do."

Other essentials that a refund check can be used for are investing in a college fund for graduate school or using it to pay off other debts, such as credit card debt. Remember, your school gave you financial aid because they thought you'd need it. Don't feel bad about spending your refund check if you have to.

The IRS also projects about 19 million taxpayers will file extensions, which will be due Oct. 15. Since the start of the January tax season, the IRS has delivered more than $200 billion in refunds through early April. The average refund was $3,011, a 4.6% increase from last April's average of $2,878.

Ramon Christopher Blanchett, of Tampa, Florida, and self-described freelancer, managed to scoop up a $980,000 tax refund after submitting his self-prepared 2016 tax return. He also allegedly claimed that he earned a total of $18,497 in wages — and that he had withheld $1 million in income taxes, according to a Jan.

How do people get huge tax returns? ›

You can increase the amount of your tax refund by decreasing your taxable income and taking advantage of tax credits. Working with a financial advisor and tax professional can help you make the most of deductions and credits you're eligible for.

Earned income tax credit 2024

For the 2024 tax year (taxes filed in 2025), the earned income credit will range from $632 to $7,830, depending on your filing status and the number of children you have.

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.

You may be in line for a smaller tax refund this year if your income rose in 2023. Earning a lot of interest in a bank account could also lead to a smaller refund. A smaller refund isn't necessarily terrible, since it means you got paid sooner rather than loaning the IRS money for no good reason.

Tax season is nearly over, and people who filed earlier in the window may wonder why a return is taking so long to process. The IRS has received 1.7% fewer returns this tax season but has processed 2% fewer returns this year compared to 2023, according to Forbes.