Financial expert offers tips on how to spend your tax refund

Social Security recipients do not have to get file tax return to get  stimulus check
Posted at 9:56 AM, Apr 19, 2022
and last updated 2022-04-19 12:56:05-04

(KERO) — If you're expecting a tax refund this year your payment could be smaller and come later than usual.

The IRS says it's dealing with major processing lags so if you filed your tax return electronically it may take the IRS longer than the usual 21 days to issue a refund.

Financial expert Ted Jenkin says the way you use your refund can make a big impact on your overall finances. His top suggestion is that you use your refund to pay off debt.

"I mean not all debt, you know, there's a lot of things now like auto loans and in some cases mortgages that people locked in at one or two or 3%. So I wouldn't use that money to pay that off. But if you have high-interest credit card debt. Absolutely."

Jenkin added that if you don't have any debts to pay off consider using the money to build an emergency reserve. You'll want to set aside an amount that covers you for at least three months, preferably six months.

Those funds can help cover unexpected costs like car trouble or medical emergencies.