Suze Orman: 4 Smart Ways To Use Your Tax Refund
Written by
Nicole Spector
Edited by
Molly Sullivan
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Millions of Americans are wrapping up filing their taxes and waiting on their tax refunds, which are typically issued within 21 days after electronic filing. The average tax refund in 2025 is $3,271, about 5.2% more than the average of $3,109 in 2024.
A recent Attest survey of 1,000 working-age Americans found that 34% of filers plan to use tax refunds to pay off debt, while 40% plan to save or invest the money. Close to 25% of those planning to invest with their refunds — chiefly millennials — plan to buy cryptocurrency.
What is the best move you can make with your tax refund? Financial guru Suze Orman recently published a blog on her website discussing four smart ways to use this money.
Building Up Your Emergency Savings
You may be familiar with this worrisome statistic: Most Americans can’t afford to cover a $1,000 emergency. Orman certainly doesn’t want to see you go into credit card debt over a surprise vet bill or temporary job loss.
Orman champions having a 12-month emergency fund on hand. She’s a fan of the Ultimate Opportunity Savings Account at Alliant Credit Union, which will give you a $100 bonus if you complete a few steps.
Pay Down Credit Card Debt
The 34% of tax return filers from the Attest survey who said that they intend to use their refund to pay down debt are making the right move, according to Orman. But this is only a truly smart move if you don’t fall back into credit card debt down the road.
“Are you ready to lean in harder to the idea of only using your credit card for true needs and not charge a penny for wants?” Orman asked.
Contribute To a Roth IRA
Orman wants to see you double down on saving for retirement. She recommended contributing to a Roth IRA — even if you already have a 401(k) plan you’re contributing to through work.
“If you are single with a modified adjusted gross income below $150,000 in 2025 (or below $236,000 if you are married and file a joint tax return), you can contribute $7,000 to a Roth IRA. If you are at least 50 years old, the limit is $8,000,” Orman wrote.
Invest In Learning New Skills
If you have an ample emergency fund, no credit card debt and are already aggressively saving for retirement, you can smartly use your tax refund by investing in a skill or hobby.
“Investing in you is always smart,” Orman wrote.
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