How to spend your tax refund: Expert advice, plus crave-worthy tax-refund splurges
After you file your taxes, you might get a big tax refund -- even bigger than last year's. In February, the IRS reported that tax refunds were up by 22.3%, with the average refund amounting to $2,323.
If you're expecting -- or have just gotten -- a tax refund this year and have the luxury to choose what you want to do with it, you have many options. You can use it to pay bills, start an emergency fund, upgrade your home with much-needed new appliances or even splurge on the latest high-end tech.
Top products in this article:
Most popular tech splurge: Apple Watch Series 7 GPS (41 mm), $349 (reduced from $399)
Most popular home appliance upgrade: Samsung smart top-load super speed washer and smart steam electric dryer set, $1,498 (regularly $1,998)
Best specialty TV: 65" The Frame QLED 4K Smart TV, $1,800 (reduced from $2,000)
When it comes to the best way to spend your tax refund, financial experts have a few recommendations.
"The cardinal sin of personal finance is credit card debt, or high-interest rate debt, when you're talking about 14 to 18 percent, potentially, of interest that you could be paying," CPA Dan Geltrude told CBS News. "If you get a lump sum refund, you should use that to get down that debt."
Paying down your debt will also improve your credit score. (You can monitor your credit score changes with a free CreditKarma account.)
After that, Geltrude recommends you save your refund, either in an emergency fund or an IRA account: "Retirement is coming for everyone. Set something aside."
While it's not recommended to splurge with your tax refund, a lot of people do use their new-found money to make a large purchase they've been putting off for a while, such as buying a new washer and dryer -- or just something fun to reward themselves for a year of hard work, such as an Apple Watch Series 7 or a gorgeous new Samsung TV. Others like using their tax refund on something that will benefit their career. Depending on your tax situation, a purchase of a new MacBook laptop could be deductible next year. (Ask a tax professional for details.)
And if you're feeling adventurous, why not buy an experience? There are still tickets available for Coachella. Go see Harry Styles, Billie Eilish and Ye. Or take a family trip to Walt Disney World and see Mickey Mouse in person.
Keep scrolling to see some fun -- and some smart -- ideas about what to spend your big tax refund on.
Apple Watch Series 7: $349
The Apple Watch Series 7 comes in new case finishes: midnight, starlight, green, a new blue and Product Red. Whichever you one you go with, you'll likely find a nice match with the new Apple Watch bands and watch faces available.
The base model, which connects to the internet via your iPhone, sells for as low as $349 on Amazon and at Walmart, the best price available right now. You can upgrade to a model that features cellular service for as low as $449. Additional monthly fees from your wireless provider may apply.
Apple Watch Series 7 GPS (41 mm), $349 (reduced from $399)
Apple Watch Series 7 GPS + cellular (41 mm), $449 (reduced from $499)
14" MacBook Pro: $1,949 and up
Use your tax refund to upgrade your MacBook Pro. The 14-inch MacBook Pro is the latest Apple model. It's a great device for creative professionals (and potentially tax deductible next year, if you use it for work). It features a stunning 3024 x 1964 Liquid Retina XDR display and comes with 16 GB of memory and 512 GB of flash storage.
14" Apple MacBook Pro (Apple M1 Pro, 16 GB RAM, 512 GB SSD), $1,949
Need something with even more processing and graphics power? The 14-inch Apple MacBook Pro with 10‑core CPU and 16‑core GPU and 1 TB SSD storage may be better suited for you.
(For more laptop options, check out our Apple MacBook guide.)
14-inch Apple MacBook Pro (Apple M1 Pro, 16 GB RAM, 1 TB SSD), $2,399
PlayStation 5
Use your tax refund on the PS5 -- if you can get it. Your luck depends on checking frequently for the latest PlayStation 5 restock news -- and on tapping those "check stock now" buttons to get lucky.
KitchenAid artisan series 5-quart stand mixer with pouring shield
Here's a great kitchen splurge to benefit the whole family: The KitchenAid artisan series 5-quart mixer features a 10-speed slide control. The kitchen device comes with a flat beater, dough hook and wire whip attachments. If "aqua sky" isn't your color, this stand mixer is available in a wide variety of shades.
KitchenAid artisan series 5-quart stand mixer with pouring shield, $429 (regularly $460)
Samsung smart top-load super speed washer and smart steam sanitize electric dryer set
Save $500 when you buy this super speed washer and smart steam electric dryer set from Samsung. Both appliances feature-integrated Wi-Fi, so you can remotely start or stop your cycle, schedule laundry, receive end-of-cycle alerts and more.
"What can I say about this washer and dryer set besides its the best that we've ever owned?" reviewed an enthusiastic customer who purchased the Samsung home appliance duo. "The washer and dryer have sleek, stylish designs and buttons and dial that are easy to use."
The Samsung washer and dryer can be purchased separately.
Samsung extra-large capacity smart top-load washer with super speed wash, $829 (regularly $1,200)
Samsung smart electric dryer with steam sanitize, $749 (regularly $999)
Samsung Bespoke 4-door french door refrigerator
Or, use your tax refund to upgrade your old fridge to this four-door Samsung refrigerator that comes with a dual auto ice maker and an auto-fill water pitcher. Plus, it's customizable: Individual drawers can be set to specific temperatures and the refrigerator's exterior can be customized with changeable door panels.
(You can see more great refrigerator options here.)
Samsung Bespoke 4-door french door refrigerator, $2,569 (regularly $3,114)
Samsung The Frame QLED 4K Smart TV: $1,000 and up
Is it time to pull the trigger on that high-tech TV you've wanted? The Frame QLED smart TV has a more decorative vibe, thanks to its picture-frame-like design. You choose the bezel color during purchase and can change the display in Art Mode, allowing it to look more like a piece of framed artwork (and less like a TV), especially when mounted.
55" The Frame QLED 4K Smart TV, $1,400 (reduced from $1,500)
65" The Frame QLED 4K Smart TV, $1,800 (reduced from $2,000)
Samsung QN900A Neo QLED TV: $3,000 and up
A premium Samsung TV can cost a lot, especially when it's something like Samsung QN900A Neo TV, which boasts 8K resolution, AI upscaling and a Quantum LED panel. Factor in a massive, 65-inch screen and you're looking at a $5,000 TV. Luckily, this Samsung TV is on sale for $3,000.
Looking for more QLED TVs? Samsung has a wide selection of TVs to choose from -- including some TVs made to be watched outdoors.
65" Samsung QN900A Neo QLED TV, $3,000 (reduced from $5,000)
75" Samsung QN900A Neo QLED TV, $4,000 (reduced from $7,000)
Stone and Strand white diamond pave huggie earrings
Splurge on real gold jewelry. These white diamond pave huggies are encrusted with ethically sourced diamonds. The set is available in yellow 14-carat gold and yellow or white 10-carat gold.
(Not your style of jewelry? Stone and Strand has a wide range of on-trend earrings, necklaces and more -- including engagement rings.)
Stone and Strand white diamond pave huggie earrings, $330
Coachella tickets
Or, you could use your tax refund money on an experience you'll never forget. Vivid Seats still has Coachella weekend one and weekend two passes available. General-admission passes are available starting at $503 per pass before fees, and VIP general admission passes start at $1,003 per pass before fees.
(For more, check out our article about how to get tickets for Coachella.)
Coachella weekend one general admission, $515 and up
Coachella weekend one VIP general admission, $851 and up
Coachella weekend two passes are available for even less, starting as low as $467 for general admission on Vivid Seats, with VIP general admission going for $952.
Coachella weekend two general admission, $474 and up
Coachella weekend two VIP general admission, $933 and up
Related content from CBS Essentials:
- How to do your taxes in 2022
- Decoding TurboTax: Which TurboTax version is right for you? Plus TurboTax deals
- Best Samsung deals right now: Galaxy S22, Galaxy Tab S8, TVs and more
- What to pack on your Disneyland or Walt Disney World vacation
- The best spring cleaning deals: Robot vacuums, Samsung washers, home organization and more
- What to pack on your national park vacation
