The Average 2022 Tax Refund Has Already Surpassed 2021's Average

Tax filers may be in line for more money this year.

When the 2022 tax season first kicked off, filers were warned to potentially expect lower refunds than they got in 2021. That's because last year, many families received advance payments on the Child Tax Credit, which also got a boost for 2021.

But so far, tax refunds are actually coming in higher in 2022. As of Feb. 18, the average tax refund amounted to $3,536. That's more than $700 higher than the average refund of $2,815 filers received in 2021.

Of course, it's too soon to determine what the average tax refund will amount to in 2022. The tax-filing deadline isn't until April 18, and many filers will no doubt wait until closer to that deadline to get their returns submitted.

But either way, if you're in the process of working on your taxes, you may be in line for a pretty nice payday once your refund rolls in. And it's important to make the most of that money once it arrives.

How to maximize your tax refund

A lot of people are eager to use their tax refunds to splurge on something special. The logic is that they're looking at found money, so they might as well enjoy it.

But one thing you should know about your tax refund is that it really isn't "free" or "found" money. Rather, it's your money -- money you were entitled to collect in 2021 but didn't. And so it really pays to put that cash to good use, especially if there are certain aspects of your finances that could use work.

For one thing, you may want to stick that money directly into your savings account if you don't have a fully loaded emergency fund -- one with enough money to cover at least three months of essential bills. Having a solid emergency fund could spare you from racking up debt when unplanned expenses arise.

And speaking of debt, if you're carrying any at present, consider using your tax refund to pay it off. This especially applies if you're carrying a costly credit card balance, or any type of high-interest loan.

If you're all set with emergency savings and don't have unhealthy debt to tackle, your tax refund could still come in handy in helping you target longer-term goals. Those could include building savings for retirement, socking away money to put down on a home, or setting aside funds to open a small business or go back to school.

What will your refund amount to?

The amount of your tax refund can change from year to year, and the amount you collect this year will hinge on your earnings in 2021, the amount of tax you already paid, and the amount of money you already received for your Child Tax Credit, if it applies to you. You may also be in line for a higher refund due to not having received your full stimulus payment in 2021.

Either way, take your time completing your return so you're able to eke out the full refund you're entitled to. And if you're not sure you're running the numbers correctly, get some help. Using tax software or paying a tax preparer a few hundred dollars may be worth it if it boosts your refund by a much larger sum.