Even though what may look like a gift from the government is actually a deferred receipt of your own money, the best use of these funds is not always obvious. This year, the issue is even trickier, with many households facing growing financial pressure from inflation, rising interest rates and the expiration of pandemic-related government assistance programs. Advance child tax credits, for example, which offered families monthly checks based on their income and number of dependents, have ended pending further action from Congress.
“For many people, Child Advance Tax Credits have become part of their budget, so you should consider saving your tax refund and using it to supplement your monthly budget in the future,” says Tommy Blackburn, Certified Financial Planner in Newport News, Virginia. . “It can help with monthly cash flow,” he adds.