Higher refunds and longer wait times: Welcome to tax season
April 6, 2022
4 min read
Welcome to Money Moves. I’m digging into all things money — moves that can impact you, links and insights, and the one thing I can’t get off my mind.
It’s tax season. And if you’re expecting to receive a tax refund this year, some surprises are in store. On one hand, the average individual return is roughly 13% higher than in 2021, coming in at around $3,300. On the other hand, it could take a little longer to receive that refund. As of March 25, the IRS had 7.2 million unprocessed individual returns. While the slowdown is expected, it’s still a tough pill to swallow.
Why it matters:
Despite the delay, the boost has many excited about extra cash in their pockets. These days extra money is especially welcome as inflation continues to eat away at our paychecks. Many Americans are struggling with higher prices at the pump, the grocery store and most other places. A larger refund could provide some extra relief.
What it means for you:
Spare cash is fun to have, but now is the time to prioritize. You told us you’re going to use your refund to double down on the smart money habits you adopted over the past two years:
50% of you plan to save your check
30% say you’ll pay down debt
25% will invest all or part of it
16% will offset higher expenses from inflation
16% are going to use the money for travel
If you’ve already received your refund (lucky you!) and you want to make it work harder for you, remember you can still make a 2021 contribution to your Individual Retirement Account (IRA) through Tax Day (April 18, 2022).
Tesla CEO Elon Musk bought a chunk – to the tune of 9% – of Twitter shares and this week was added to the social media company’s Board of Directors. Having a guy like that on your board is a good thing. He’s a serial entrepreneur with a solid track record, is passionate about the platform (if you don’t follow him on Twitter, you should), and garners a lot of respect for his visionary ideas. But does someone who already helms four different companies have time to help improve Twitter’s operations and profitability? There is such a thing as getting stretched too thin, and while being a board member is not the same as being a CEO, it does require a solid time commitment. If you’re a Twitter or Tesla shareholder, it will be interesting to watch, so stay tuned.