How stimulus payments impact your tax refund options

News

ROCHESTER, N.Y. (WROC) — With the income tax filing deadline pushed out to May 17 this year, many people are still getting tax refunds and considering their financial options with the money.

CPA Scott Adair discussed some of those options and how federal stimulus payments could help open up some options Thursday during News 8 at Sunrise.

“Based on last year’s results somewhere between 70 to 75 percent of filers actually get a refund each and every year,” Adair said. “The average refund is about $2,500 based on the IRS data from last year.”

So what to do with that money? Adair said to save and eliminate debt if you can. “It is somewhat of a unique year from the standpoint of the number of stimulus checks that individuals have gotten and this tax refund. It gives a great opportunity if you’ve been able to save some money to start planning for the future – setting up that emergency fund that we’ve talked about before, paying off any high-interest rate credit card debt or unsecured debt that you may have, or start saving for your children’s college funds.”

Adair added that changes to the Child Tax Credit will offer even more money to people earlier than expected. “A lot of folks are not anticipating the fact that they’re going to get a check starting in July based on the IRS information that’s being published as part of that Child Tax Credit, and that will go on through the rest of 2021 and could be a considerable amount of money depending upon the number of children that you have in your eligible income levels, so certainly something to watch for.”

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