How to use your tax refunds in a smart way in 2023

If you are a taxpayer, you will be interested in knowing how much you could receive as a tax refund in 2023. In the following article we analyze the current situation and give you tips that will help you manage your finances in the best way possible.

The deadline to file the tax return is over and we already know this year’s refund numbers. According to the Internal Revenue Service (IRS), the average tax refund amount in 2023 was $2,753, representing a 9% decrease compared to $3,012 last year.

The IRS had already warned in November 2022 that refunds could be lower this year for a variety of reasons, including last year’s lack of economic impact payments and the greater difficulty in deducting charitable contributions.

Even if your tax refund is less this year, any extra money can improve your financial health if you have a plan on how to use it. With this year's tax season coinciding with high interest rates that continue rising, some financial moves are more urgent than others.

¿How can you take advantage of the tax refund once you receive it?

For example, if you have a credit card debt, it's important to prioritize paying it off with your tax refund to free yourself from that high-interest debt.

If you do not have a credit card debt, you could invest that money in your investment account or take advantage of it in your business, and even if you want to have it available and still do not dare to invest you can deposit it in a savings account with a high and affordable interest rate.

¿Do you have questions about how to receive your refund or would you like to optimize your tax preparation aspiring for 2024?

At Smartkeep, we are experts in providing tax and accounting advisory services. We help you maximize your tax refunds and manage your finances wisely. Do not hesitate to contact us to keep your numbers green.

Follow us on our social media @smartkeep_ and subscribe to our Green News if you want to stay updated.


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