Got a Refund? Didn’t Get One? Ideas on What to Do Next

Now that the main tax deadline has passed, you might be sitting with a refund, still waiting for it, or wondering why you didn’t get one and how you can plan for next year. Whatever your situation, this time of year can be a good opportunity to pause, check in with your finances, and think about what could come next.

Whether things turned out how you expected or took you by surprise, you’re not alone in figuring out next steps.
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If You Received a Refund‍

A refund, whether it’s big or small, can make a difference. For some filers, it might be the largest lump sum they see all year. For others, it might be a smaller amount—maybe just enough to cover a utility bill, fill up their gas tank, or treat themselves to a meal out. Either way, it’s your money, and it’s worth taking a moment to think through how it can support your priorities and how to use it in a way that makes the most sense for you.

Here are a few ideas that might be helpful to think through:

What could this help with right now? Even a smaller refund can go toward something that eases your day-to-day stress and boosts your mood-—like food or a partial bill payment.

Can any of this go toward the future? Even though $10, $20, or $50 might not seem like a lot, it can be the start towards a savings or retirement account that can grow through the accumulation of interest.

Example: You Weren’t Expecting a Refund—But You Got $1,200

Let’s say you weren’t planning on getting a refund this year. Maybe your income changed, or you didn’t think you’d qualify for credits, but when your return processed, you got $1,200 back.

It might be tempting to immediately spend it. But it can be helpful to pause and think through the different ways you could use the money before taking action. Here are a few things you may want to consider:

What are your immediate needs? Is there anything that’s been causing stress—like rent, bills, or groceries that you’d want to put part of this refund toward?
Since this was unexpected, could part of it go toward the future? Maybe that means starting or adding to an emergency fund, savings account, or retirement account. Even $50 or $100 can grow over time when used toward interest-bearing accounts, helping increase your money long-term. For instance, you could start a California Savings Account or a 529 Account to save for education-related expenses.
Would it help to split the refund across different priorities? For example, someone might choose to use $600 for rent, $300 for everyday needs like food or gas, $200 for savings, and $100 for self-care or something they’ve been putting off.
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If You Didn’t Get a Refund or Ended up Owing

It can be frustrating to hear other people talking about their refund plans when you're not expecting one. That disappointment is real. If you were planning around a refund that didn’t happen, you’re not alone in needing to adjust.There are many reasons why someone might not get a refund. Maybe your income changed, your withholding was different, or the credits you expected didn’t apply. It can be frustrating, especially if the outcome caught you off guard.

If it helps to think ahead, you might consider:

Checking how much tax is withheld from your paychecks and seeing if it lines up with what you actually owed this year.
Make note of any big changes that happened this year (like a job switch, a change in dependents, or side income).
Consider using free filing tools so that you keep more of your money, no matter what your refund looks like.

Example: You Expected a Refund—But Didn’t Get One

You were expecting a refund, and it didn’t happen. That shift can be tough, especially if you had already allocated the money to cover debt, rent, or bills.

If you’re regrouping, here are some things to consider:

Look into payment plans. Some services and providers offer no-interest payment plans. These can help you spread out costs over time without making your situation worse with added debt.
Prioritize what’s growing. If one of your bills or debts is racking up interest or late fees, you might consider focusing on that first, while setting up minimum payments or payment plans on the rest. Even small amounts can slow down how fast that debt grows.
Explore benefit programs. Benefit screeners, like the one on MyMoneyPath.org, can connect you with support.
Reach out to local resources. Calling 211 can help you explore what’s available in your area, even if you’re not sure what to ask for. When calling, ask what different resources you might be eligible for. You might not be eligible for support in one area, like rent, but you could qualify for help with utilities, food, or health care. Money saved elsewhere can be redirected toward other needs.

Making Adjustments: With or Without a Refund

Whether you received a refund or didn’t, it is a good opportunity to reassess your budget. Maybe you were counting on your refund to do something specific, or maybe you didn’t expect to owe and now have to rethink your budget.

This is a good chance to look back at your return and ask:

What changed this year that affected my return?
Do I want a different outcome next year? If so, what do I need to plan differently?
Are there shifts I can make to feel more in control of the months ahead?
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Still Need to File?

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To access a refund or claim credits, you need to file taxes. Through our affiliated site, MyFreeTaxes.org, you can:

File for free by either getting connected to IRS-certified volunteer tax preparers (in person or online) who can prepare your taxes for you, or by filing on your own using trusted, IRS-approved tax software.
Access tools and guides that help you learn more about the filing process, tax credits, and how to file for free.

By using free filing resources, you can keep more of your refund (or save money if you’re not getting one) instead of spending it on a paid tax preparer or software.

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Want to Revisit Your Budget or Set a Goal?

Whether you’re planning how to use your refund or figuring out next steps if you’re not getting one, budgeting can help you feel more in control of your money.

With a free MyMoneyPath account, you can:

Create and track SMART goals, like saving a portion of your refund, reducing debt, or building an emergency fund.
Use tools that help you start or revisit a budget, so you can plan based on what you have now and what’s coming up.
Get reminders and tips to keep moving forward at your own pace.

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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered financial advice. Please consult a financial advisor for personalized advice tailored to your individual circumstances.