Receiving a large tax refund can feel like you won the lottery. For many of us, it’s the biggest paycheck we receive all year. That’s a lot of “extra” money at our disposal.
In fact, about 3 in 4 Americans receive a tax refund each year with the average federal tax refund being between $2,300 and $3,200, depending on the state in which you live.
Keep in mind, however, that the money you got back was yours all along. You just gave Uncle Sam a year-long loan and he didn’t have to pay any interest on it. Not a bad deal for him.
In addition, millions of Americans began receiving $1,400 stimulus checks in mid-March. A total of about 159 million households received payment.
