How to use a tax refund to fight inflation

If inflation has eaten away at your budget the way waves erode a beach, then your tax refund might just provide a much-needed protective barrier.

As of March, prices are up 6% over the past 12 months, according to the most recent consumer price index. At the same time, just over half of filers (55%) are expecting tax refunds for the 2022 tax year, with an average expected refund of $2,205, according to the 2023 Nerdwallet Tax Report. Financial experts say consumers can use that windfall — which is really just a delayed paycheck that you already earned — to help offset the strain of those higher prices.

“Tax refunds are going to arrive at just the right time for many consumers this spring,” says Drew Wessell, a certified financial planner at Fiduciary Financial Advisors in Grand Rapids, Michigan. In Kimberly Palmer’s latest for the Associated Press, learn how to use a tax refund to fight inflation.

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  1. Herman cortez says

    What is the real scoop on the IRS forcing people to use retirement investment money by age 72. I received an e-mail saying if you turn 72 this year you have to start taking distributions by April 1. Then I read it was by December. Now I read if you turn 72 In 2023 you have 2 more years till 2024 TO START TAKE DISTRIBUTIONS. And if you don’t at least start taking distributions it’s a 25% penalty. What is the real deal?

  2. Which is better…a Trust or a Beneficiary Deed

    • Liz Weston says

      Depends on the situation. It’s a good idea to consult an estate planning attorney.