Key Points
The IRS has been accepting tax returns since late January.
The sooner you file, the sooner you might get a refund if you're owed one.
It's important to put your refund to good use, no matter the size.
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At this point, there's still a decent amount of time to finish your taxes ahead of the April 15 filing deadline. But since the IRS began accepting tax returns in late January, a lot of people have submitted their 2025 taxes already.
As of Feb. 20, 2026, the IRS had processed more than 41 million tax returns and issued close to 29 million refunds. And as of that same date, the average tax refund issued was $3,804.
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Clearly, $3,804 isn't a small amount of money. So, if your refund is similar, it's important to put it to good use.
How to make the most of your tax refund
It's easy to look at a tax refund as free money. But remember, a tax refund represents money the IRS withheld from you in error and is now returning. So, it pays to use that money to meet different financial goals.
Your first financial priority should be to build an emergency fund -- ideally, one that can cover three to six months of essential bills. If you don't have one already, use your tax refund to start it.
If you're set on emergency savings, you can focus on retirement savings. Sending your tax refund into 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 refund? Use it to pay off debt. The more money you spend on interest, the less you'll have to save and invest.
This doesn't mean you should use your tax refund to pay off your mortgage, though. You're generally better off focusing on higher-interest debt, like credit card balances.
Don't wait to get your money
The sooner you file your tax return, the sooner your tax refund might land in your bank account. So, while there's still time to get your taxes done by April 15, if you want that money ASAP, it pays to get moving.
There's also a less obvious benefit to getting your taxes done earlier in the season. If a criminal gets a hold of your Social Security number, they can attempt to file a tax return in your name and steal your refund. But if you file your tax return first and a second return is fraudulently filed using your Social Security number, that second return should get rejected.
Even if your tax refund is nowhere close to $3,804, you don't want it diverted to a criminal's bank account. So, if you have all your tax documents ready, why not carve out some time to get your return submitted and check one more big task off your list?
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