The average tax refund in 2025 was $3,052, totaling nearly $312 billion. Overpaying taxes can be seen as an interest-free loan to the government. This money could be working for you instead, generating interest or potential gains. Smarter financial planning is key to keeping more of your money throughout the year.

If you receive a large tax refund, you may be overpaying taxes throughout the year. Adjust your withholding using the IRS Withholding Estimator to keep more money in your pocket. Review your withholding after major life changes and adjust estimated tax payments if you’re self-employed. Aim to get your refund as close to zero as possible for better financial returns.

Read more at Yahoo Finance: The Brutal Truth About Your Tax Refund