The average federal income tax refund was $2,869 in 2019 based on returns filed through Dec. 27, 2019.
Nearly 40% of tax filers do so before the end of February…presumably because they want their refund or need it.
A tax refund is a great opportunity start saving, to invest. Open an account in an indexed mutual fund and reinvest all the earnings. Set it and forget it (except for sending in a few more bucks whenever you can) and watch it add to your financial security.
But if that refund is really large, you are just making a tax-free loan to the government. Lower your withholding a bit and put the difference in a mutual fund throughout the year.