These tips from the Illinois CPA Society can help you make a tax refund go further.
CHICAGO, April 16, 2026 – Tax Day is officially behind us, and if you’re getting a tax refund this year—which were predicted to be about 10% higher due to provisions in the One Big Beautiful Bill Act—hopefully it’s already in your bank account or will be shortly. Whether large or small, there are some smart money moves you can make with your tax refund to set yourself up for long-term financial success. Here, the Illinois CPA Society (ICPAS) shares three suggestions for putting your refund to work for you.
1. Secure your emergency savings. Bankrate’s 2026 Annual Emergency Savings Report found that 24% of Americans have no emergency savings at all, while 29% have more credit card debt than emergency savings. If you find yourself lacking the emergency savings to cover a $1,000 unexpected expense or at least three to six months of living expenses, using your tax refund to solidify your savings is a smart move. Over time, growing your emergency savings to cover 12 months of living expenses is often recommended to ensure you can comfortably cover even substantial setbacks. With this in mind, a great place to park your emergency savings is in an accessible high-yield savings account or callable certificate of deposit.
2. Pay down debt. The Federal Reserve Bank of New York’s Center for Microeconomic Data reported U.S. household debt and credit card balances climbed to an all-time high of more than $18.8 trillion by the end of 2025. If you’re incurring high interest expenses on mortgages, consumer loans, and credit cards, using your tax refund to pay down a chunk of debt is especially rewarding. Making a payment toward principal immediately lowers your loan amount, reducing both the length of time to repay the loan and the amount of overall interest paid. It’s generally recommended to pay down debts incurring the highest interest rates and charges first, followed by those with interest rates greater than what your savings accounts are yielding. Going from being an “interest payer” to an “interest earner” is one of the pillars of building wealth and improving your financial well-being.
3. Grow your nest egg: Making long-term investments is critical to having a healthy financial future. With your emergency savings established, and your debt manageable, funding retirement accounts and making other investments should become your priority. A tax refund could provide a nice contribution to an individual retirement account (traditional or Roth), health savings account, or even a taxable brokerage account. While each of these accounts offer access to different types of investments (i.e., stocks, bonds, mutual funds, etc.) and have different income and tax considerations to account for, the bottom line is that investing for the long term is a savvy savings strategy.
Overall, your tax refund might be the perfect way to get your savings and investments on track for long-term financial well-being. Of course, a CPA—a certified public accountant—can help you maximize your tax refund, create a better tax strategy, make a financial plan, and manage your personal finances well into the future. ICPAS’ free “Find a CPA” directory can help you find the trusted, strategic advisor that’s right for you based on location, types of services needed, and languages spoken. Find a CPA at www.icpas.org/findacpa.