Tax Refund Planner
Enter your expected refund, the APR on your highest card, and the fun share you can live with. The calculator splits the rest 70/30 between the card and the emergency fund and shows the interest the card payment saves this year.
The order is not moral, it is mathematical: debt first because the interest saving is a guaranteed return, emergency fund second because it is what keeps the next refund from also going to a card. The pro move is withholding tuning - a refund is an interest-free loan you gave the government all year.
How to use
- Refund estimate from your filing software, the day it lands.
- Enter the APR on your highest-rate card - the guaranteed-return rate.
- Keep a fun share; budgets with zero fun do not survive February.
Frequently asked questions
What should I do with my tax refund?
The standard honest order: high-interest debt first (the interest saved is a guaranteed return), emergency fund second, and a planned fun share so the budget survives February. The calculator prices the split at your numbers.
Is a tax refund bad for your finances?
A big refund means you lent the government money interest-free all year. It feels like a bonus but it was your take-home; adjusting withholding converts next year refund into monthly cash flow - the refund-happy habit is quietly expensive.
How much of my refund should go to savings?
Whatever is left after high-APR debt: the emergency fund is the second priority because it prevents the next borrowing. Even 500 dollars in the buffer changes how the next car repair feels.
Are tax refund scams common?
Refund season is phishing season - fake IRS calls, texts and refund-advance offers spike. The IRS does not call, text or email first, ever, and no legitimate service needs your full return by chat.