Clever Girl Finance isn’t just about money. We are about freedom, choices, and confidence. We know how overwhelming finances can feel, especially when you’re juggling career, family, and personal goals. That’s why we’ve built one of the largest personal finance communities for women, with over 100,000 women learning, growing, and winning with their money together.When you subscribe, you’re not just signing up for financial tips, you’re joining a movement. You’ll get access to relatable, judgment-free advice designed to help you ditch debt, save consistently, and invest with confidence. We break down money topics in a way that’s simple, practical, and actually fun. Whether you want to build your first emergency fund, pay off thousands in debt, or finally start building wealth for the long term, we’ve got the tools and support you need. With our resources, tools, and strategies, you’ll know you’re not alone on this journey. Subscribe today—because your future self deserves the financial freedom you’re dreaming of!
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💰 Bigger Tax Refunds In 2026: Got A Plan For Yours?
Good news: Many Americans could see bigger tax refunds in 2026, thanks to recent changes in tax law and how taxes were withheld in 2025, according to CNBC.
Here's what happened: Updates to the tax code—like adjustments to the standard deduction and certain credits—lowered tax bills for a lot of households. But not all employers updated their withholding tables right away. So if you're one of those people, you may have had more taxes taken out of your paychecks than you actually owed. Translation? A bigger refund when you file.
That said, a bigger refund isn’t guaranteed for everyone. How much you get back will still depend on your income, filing status, deductions, credits, and how accurately your taxes were withheld throughout the year.
Here's something to keep in mind: While a big refund can feel like a windfall, it's really just your own money coming back to you. If you want more cash in your pocket throughout the year instead of waiting until tax time, consider adjusting your withholding.
That way, you can put your money to work for you now—whether that's paying down debt, boosting your savings, or investing for your future.
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What bigger tax refunds could mean for the economy
Bigger refunds could mean more consumer spending. Yet research shows many earners have plans to use their refunds to pay off debt or save.
According to a National Retail Federation survey of 8,600 adults, in 2025, 82% of taxpayers planned to use their refunds to pay off debt or save.
How you choose to spend your tax refund money can support your overall financial wellness. Let’s talk about the many options you have for your refund money.
What to do if you get a bigger tax refund in 2026
Filing your taxes and getting notified that you’ll be getting money back is one of the best feelings. That dopamine hit will make you want to call the best restaurant in town and reserve a table; but before you do, it's worth having a plan for that money. Here's how to make the most of your tax refund.
Pause before you spend it
Think of your tax refund like a steak, not a soufflé. A soufflé needs to be eaten the moment it comes out of the oven, but a steak? It gets better when you let it rest. Do the same with your refund.
Move your refund to a separate savings account, or give yourself a three-to-five day "cooling-off" period before you do anything with it. This simple pause can help you avoid impulse spending.
During this waiting period, you can make a plan for your money. Take time to look at your current and long-term needs to help you decide where to put your money.
Give your money a purpose
Depending on the size of your refund, you can likely spread it across a few different areas. Pick three or four categories based on your current goals — think savings, debt payoff, and spending.
Choose three or four areas to divide your money based on your current needs and goals. These categories could be savings, debt, and spending. If you don’t have any debt or your debt is under control, you can divide your money between savings, investing, and spending.
Next, decide what percentages or amounts you’re going to give to each category. If you have high-interest debt or don’t have an emergency savings, consider putting a higher percentage toward these areas.
Likewise, if you have any bills that are past due, cover those expenses first, then divide up what’s left.
Don’t forget that it’s also okay to put aside some money for fun spending.
Once you’ve decided where your money will go, write it down. This way, you can track where your money is going and avoid overspending.
Strengthen your financial foundation
Warren Buffett once said, “Do not save what is left after spending, but spend what is left after saving.”
Following Buffett’s advice, consider how you’re going to save your tax refund money first, then make a plan for spending what is left over.
You can start by putting some money toward your emergency fund. Remember, a strong emergency savings has about 3–6 months of basic living expenses saved.
Another great way to save your refund money is with a sinking fund. With a sinking fund, you’re saving money for one-time or irregular purchases such as a vacation, braces for your child, a new car, or a down payment on a house.
While saving money is a priority, another way to secure your financial foundation is by paying off any pending expenses. Are there any bills you need to catch up on? Do you have any upcoming expenses, such as annual or quarterly payments, car repairs, or medical procedures?
Using your tax refund money for your immediate needs as well as your future goals will give you peace of mind.
Pay down high-interest debt
High-interest debt can prevent you from being financially stable and building wealth. To lead a life where you’re not constantly negotiating with creditors, use some of your refund money to pay off debt.
Consider paying off or putting a partial lump-sum payment toward any high-interest debts, such as credit cards or car loans.
Paying off debt isn’t as exciting as buying a new phone. Instead, it’s more like taking off a heavy load you’ve been carrying. High-interest debt is a financial burden that only gets heavier the longer you have it.
Eliminating some or all of your debt now will give you more spending power in the future.
Side note: If you have low-interest debt, making additional payments is also a smart move. However, make sure your financial foundation is solid first. This means being up to date on all your bills, covering any income gaps, and adding to your savings.
Invest for your future self
Once you’ve taken care of your immediate needs and expenses, let’s think more about your future. You can use your tax refund money to contribute to a Roth IRA, traditional IRA, or taxable brokerage account.
Many people put off saving for retirement until they get older. Whether retirement is 20 years or 50 years away, starting contributions now will allow your money to grow over time.
Likewise, using some of your tax refund to invest can help you create wealth in the future. You can even divide your refund money into monthly investment payments so you can invest consistently over time.
Remember, if it’s your first time investing, you don’t have to start with anything complicated. Simple investment options include:
If you choose to invest, remember it’s a long-term game, and diversifying your investments will give you more options.
Adjust your withholding going forward
If you’re shocked by how large your tax refund is, it might mean too much money was withheld from your paychecks during the year.
Keep in mind, tax refund money isn’t exactly extra money. If you owe money at tax time, it means you didn’t pay enough during the year. If you get money back, it means you paid too much. It’s all your money in the end.
Therefore, if you noticed that you struggled a bit more this year with your earnings, it may be time to adjust your withholding. Review your tax bracket and update your W-4 so you’re paying the amount that is required but also sustainable for you.
By making these adjustments, you can build saving and investing habits with each paycheck instead of waiting until tax season to start saving.
Enjoy a small, intentional reward
Now that you’ve done the responsible thing of putting your money toward your needs and plans, let’s celebrate.
By spending your money on something that matters to you instead of a flash deal on Amazon, you’ll feel better about your spending. You’re also reminding your brain that you can spend intentionally rather than impulsively.
What’s something you’ve been wanting for a while but have been putting off?
Think beyond this tax season
How you spend your tax refund money isn’t just about this moment in time. It’s an opportunity to plan for your financial future while also building positive money habits.
For instance, set up automatic payments, create a budget for your money, or practice leaving it in your account without touching it.
Think of this money as a practice test for how you can manage your money in the future.
We hope that this tax season is good to you. Remember that filing early can mean getting your return sooner. And whatever amount you receive back, we know you’ll use your money wisely.
If you want to invest your money, but don’t know where to start, check out our free course on investing.
PLUS when you sign up for a free course, you can schedule a completely free call with one of our amazing Clever Girl Finance mentors. WE ARE IN YOUR CORNER!
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Clever Girl Finance isn’t just about money. We are about freedom, choices, and confidence. We know how overwhelming finances can feel, especially when you’re juggling career, family, and personal goals. That’s why we’ve built one of the largest personal finance communities for women, with over 100,000 women learning, growing, and winning with their money together.When you subscribe, you’re not just signing up for financial tips, you’re joining a movement. You’ll get access to relatable, judgment-free advice designed to help you ditch debt, save consistently, and invest with confidence. We break down money topics in a way that’s simple, practical, and actually fun. Whether you want to build your first emergency fund, pay off thousands in debt, or finally start building wealth for the long term, we’ve got the tools and support you need. With our resources, tools, and strategies, you’ll know you’re not alone on this journey. Subscribe today—because your future self deserves the financial freedom you’re dreaming of!
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