Top 3 ways to use your tax refund in 2022

It's time to get excited about warmer weather and spring adventures. Additionally, it’s officially Financial Literacy Month, which means we’re bringing you tips and advice to get ahead of your finances with total confidence.

As a reminder, taxes are due April 18th. Check out this helpful resource to get yours done accurately and on-time.

This year you could be getting a refund—here’s why the IRS may give you extra money.

A tax refund is a reimbursement if you paid too much of your income to the federal government. Additionally, you may get cash back from tax credits if you paid for healthcare, college tuition or daycare. Check out some of the most common tax credits:

🎓 Tax credits for college tuition

You could be getting up to $2,500 for each student enrolled. Learn more

🍼 Child and dependent care credit

The maximum credit for one child is $4000 and up to $8000 for two or more children. See if you qualify

🩺 Health insurance 

If you're self-employed and pay for your own health insurance, you may be eligible for a tax credit. Find out if you qualify

Now, the part you've been waiting for: our top 3 ways to make the most of your tax refund.  

Instead of giving you the same cookie cutter advice to save your tax refund, we know that how you use your hard-earned money is completely up to you. Plus, the best use of your tax refund will vary for everyone depending on your income, credit and personal requirements. Here are a few different scenarios that may be right for you: 

1. Paying off small debts

Paying off debts and keeping up with regular payments can help improve your credit score and provide additional credit opportunities. Free up credit and give yourself the flexibility to try new restaurants or travel. Check out some common credit myths we’ve busted.

2. Saving for vacation

Want to spend some quality time with your favorite people? There’s nothing better than a family vacation to one of your favorite destinations. Add your tax refund to your vacation savings and you might just have enough to pay for a relaxing vacation.

3. Home improvement

A little extra cash towards home improvement could be the necessary makeover your home needs. Some simple DIY updates like a fresh coat of paint or refinishing kitchen cabinets could go a long way—without breaking the bank. Some other ideas include:

  • Install a water filter in your kitchen for a quick update that can save you money on bottled water.
  • Bring new life to your outdoor deck—it's as easy as renting a power-washer to get that new wood look.
  • Lastly, try out some eco-friendly options to reduce your power bill

This blog post is intended for general information purposes only and should not be considered legal or financial advice.

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