How to Use Your Tax Refund This Year

With April just around the corner, tax season is upon us once again. This year, American taxpayers must file by Wednesday, April 15, 2026. And if you’re like many people, you may be thinking about the potential of receiving a tax refund.

After a year of rising costs, mass layoffs, and changing economic conditions, even a small refund can make a big difference. So what should you do with your tax refund this year? Keep reading for a list of options, from growing your emergency fund to starting a side gig. Let's get started!

If You are Employed: How to Use a Tax Refund

1. Start or Add to an Emergency Fund

2025 was a reminder that life doesn't always go according to plan, and we can't possibly prepare for everything! But having an emergency fund—or as we like to call them, “peace of mind” accounts—can make a HUGE difference. 

If you don’t have one yet, it's a good idea to start one with your tax refund money. And if you DO have an emergency fund, adding to it can only help! Whether you deposit all of your refund or just a portion, there's no such thing as being too prepared for life's curveballs.

2. Meet Savings Goals

Saving money isn’t only for emergencies. Think about what you are working toward: retirement, a future home, your teenager's college education, etc. Your tax refund can give those savings a big push!

Of course, it's definitely tempting to use the money for something else, but saving even part of your refund will help you reach your financial goals faster.

PRO TIP: Financial calculators are a great tool for savings. Explore our Compounding Interest Calculator, Saving for College Calculator, 401K Calculator, and many more.

3. Spend it on You

This year has been tough for many people—from higher prices to mass layoffs. So if your tax refund gives you a little breathing room, there is NOTHING WRONG with using some of it on yourself!

Maybe that means a weekend trip with your friends, a long-overdue visit with family, or simply upgrading your phone. If it makes life easier, why not do it?

If You are Unemployed: How to Use a Tax Refund

1. Take Care of the Basics

If you are between jobs, your priority is making sure your essential expenses are covered.

Focus on necessities first: housing, utilities, groceries, and transportation. Once those are steady, look at other important areas such as health insurance, loan payments, and credit card balances.

When you have determined your priorities, direct the money from your tax refund there. While it may arrive as a single payment, some tax refunds can be the size of a monthly paycheck. Use it to your advantage!

2. Give Yourself a Leg Up in the Job Search

Job searching can be competitive and time-consuming. Therefore, investing in the resources that support your career can go a long way. Consider using part of your tax refund to upgrade your tools and opportunities:

• Premium job boards or networking platforms
• Professional resume or LinkedIn help
• Online courses or certifications that strengthen your skills
• Career coaching or job-search tools

3. Start a Side Gig

If full-time roles are taking time to materialize, consider using part of your tax refund to launch a side gig. This can help bridge the gap and even grow into a long-term income stream. A small investment upfront can set you up with the materials and tools you need to get started.

Your refund can cover things like:

• Basic equipment for a craft, service, or online business
• Software or tools needed for freelance projects
• Materials or supplies to create products to sell
• A website domain or simple marketing expenses
• Online courses that help you turn a hobby into income

A side hustle doesn't have to be large or perfect. By earning a little each week, it can ease financial pressure during unemployment.

Choosing the Best Bank for You

At Academy Bank, we look at banking from a different point of view: YOURS!  Whether you are saving for emergencies, rebuilding your credit, or looking for everyday banking solutions, we offer products designed to support your financial goals.

Here are a few ways we can help you manage your money:

• Savings & Money Market Accounts for building your emergency fund
• Certificates of Deposit (CDs) for long-term savings growth
• Checking Accounts for your daily banking needs
• Credit Builder Secured Credit Card for building or rebuilding credit.

No matter where you are in your financial journey—employed, job searching, or somewhere in between—we are here to help you make the most of your money and move forward with confidence.

Academy Bank Online

Academy Bank Near Me

MORE TAX SEASON RESOURCES:
Common Tax-Filing Mistakes to Avoid
Tax Checklist: How to Get Ready for Tax Season
Best Tax Calculators to Simplify Tax Season
Why Should I Build Credit with My Tax Refund?