5 Things to do with Tax Refund

What was the average direct deposit payment for tax refunds last year?

• $2,827

• $3,099

• $2,500

• $3,500

Why might getting a big tax refund not be considered a good thing?

• It indicates you paid too much in taxes.

• It means you earned less money.

• You receive less money back.

• The government charges interest on refunds.

What is one of the recommended uses for your tax refund?

• Luxury shopping

• Vacation spending

• Eating out at expensive restaurants

• Start an emergency fund

What type of savings account is suggested to get more value from your refund?

• Under-the-mattress savings

• Checking account

• High-yield savings account

• Regular savings account

How long does it typically take for the IRS to issue most refunds to taxpayers?

• Within 6 weeks

• Within 10 business days

• Within 3 months

• Within 21 calendar days

What is a smart financial move to make with your tax refund according to the text?

• Go on a shopping spree

• Buy the latest gadgets

• Pay off high-interest debt

• Invest in lottery tickets

How much could adding $2,827 (the average refund in 2023) into a typical IRA potentially yield after 25 years?

• More than $30,000

• Exactly $10,000

• Upwards of $20,000

• Around $5,000

What should you check before deciding to use your tax refund to pad your retirement fund?

• Your horoscope

• The contribution limits for retirement accounts

• The stock market

• The weather forecast

According to the text, how are most Americans spending their federal tax refunds?

• Paying off debt or existing bills

• Investing in stocks

• Traveling abroad

• Saving it for future use

What is a potential drawback of high-yield savings accounts mentioned in the text?

• Restricted access to your funds

• Low interest rates

• No need for a minimum deposit

• Unlimited access to your funds