Making the most of tax season, whether you get a refund or owe taxes
At Numerica, we believe financial wellness is about feeling confident in every season of life, including tax season. Whether you are receiving a refund or planning how to pay what you owe, the right strategy can reduce stress and move you closer to your goals.
If you are getting a refund, think of it as a chance to strengthen your financial future.
If you owe money, take a breath. With a plan, it is manageable.
No matter your situation, we are here to help you make informed, confident choices.
How to use your tax refund wisely
If you are expecting a tax refund, pause before spending it. A thoughtful plan can turn a one-time deposit into long term progress.
Here are smart ways to put your refund to work.
1. Pay down high interest debt
Using your tax refund to reduce debt can save you money and free up monthly cash flow.
- Focus on balances with highest interest rates, often credit cards. This approach is known as the avalanche method.
- Once one balance is paid off, apply payment to the next debt to build momentum.
Real life example:
Ally S used her $3,000 refund to reduce the principal on her car loan. She is now paying less interest and will pay off her loan faster.
Looking for more ideas? Explore our debt payoff tips to keep moving forward.
2. Build or boost your emergency fund
Unexpected expenses happen. An emergency fund can help turn a stressful moment into a manageable one.
- Start with a goal of saving $1,000 as a basic buffer.
- Work toward 3 months of essential living expenses.
If you need help fitting savings into your budget, our free budgeting workbook can help you get started.
3. Invest in your future goals
Because a tax refund is money you were not counting on, it's a great opportunity to invest in long term goals. Even small steps today can make a big difference.
Consider using your refund for:
- Retirement savings: It is never too early or late to start preparing.
- Education savings: For children, grandchildren, or yourself.
- Homeownership goals: Saving for a down payment or preparing for your next move.
Owe taxes this year? Swap panic for a plan.
Owing money at tax time is more common than you might think. The key is having a clear, realistic plan.
Step 1. Adjust your budget
- Treat your tax bill like a short-term expense.
- Cut back on non-essentials such as dining out, subscriptions, or impulse purchases.
Step 2. Ask for support
- Connect with a free financial counselor at Numerica to create a plan that fits your budget.
- Explore IRS payment plans if you need more time. Many options are easy to set up and may be interest free for qualified taxpayers.
Small changes now can ease financial stress later.
What if your refund is small?
Even a modest refund can make an impact.
- Under $500: Add to your emergency fund or prepay a utility bill.
- Over $1,000: Consider splitting it between debt payoff, savings, and future goals.
Progress is progress, no matter the amount.
Watch out for tax advance loans
Be cautious of offers that promise instant access to your refund. These loans often come with high fees and interest.
If you file electronically and choose direct deposit, your refund may arrive quickly without the added cost of a third party.
Free tax filing help
If you need help preparing your return, these trusted resources offer free support:
More tools for tax season and beyond
We are with you all year long
Whether you are celebrating a refund or working through a tax bill, Numerica is here to support your financial wellness. This article was created by our Financial Education team, local experts dedicated to helping our members live well through education and guidance.
Let’s make this tax season another step toward living well.
Written January 2026
Written by the Numerica Financial Education Team: Helping members grow their money across Spokane, North Idaho, Wenatchee, and the Tri-Cities.
