At this point, there’s still plenty of time to finish your taxes before the April 15 filing deadline. But since the IRS started accepting tax returns in late January, many people have already submitted their 2025 taxes.
As of February 20, 2026, the IRS has processed more than 41 million tax returns and issued nearly 29 million returns. And as of the same date, the average tax return was $3,804.
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Obviously, $3,804 is not a small amount of money. So, if your refund is the same, it’s important to put it to good use.
It’s easy to look at a tax refund as free money. But remember, a tax refund represents money that the IRS withheld from you in error and is now being returned. So, it pays to use this money to meet various financial goals.
Your first financial priority should be building an emergency fund — ideally, one that can cover three to six months of essential bills. If you haven’t already, use your tax refund to get started.
If you’re into emergency savings, you can focus on retirement savings. Sending your tax return to an Individual Retirement Account (IRA) is a great way to set yourself up with money for the future.
Another great thing to do with your tax return? Use it to pay off debt. The more you spend on interest, the less you will have to save and invest.
That doesn’t mean you have to use your tax refund to pay off your mortgage, though. You’re generally better off focusing on high-interest debt, such as credit card balances.
The sooner you file your tax return, the sooner your tax refund can arrive in your bank account. So, while there’s still time to get your finances in by April 15, if you want that money ASAP, it pays to get moving.
There is also a less obvious benefit to getting your taxes in early in the season. If a criminal gets hold of your Social Security number, they can try to file a tax return in your name and steal your return. But if you file the first tax return and the second return is fraudulently filed using your Social Security number, that second return must be rejected.
Even if your tax refund is close to $3,804, you don’t want it to be diverted to a delinquent bank account. So, if you’ve got all your tax documents ready, why not take some time to review your return and check another big task off your list?
