\n<\/p>\n
As of Feb. 6, the IRS paid an average tax refund of $2,290, up a few hundred dolalrs from the same time in 2025. However, the average refund typically increases as the filing season progresses. The overall average for tax year 2025 was $3,167, up from $3,138 in 2024.<\/p>\n
Conservatively optimistic, I decided to plan for an even $3,000 in overpaid withholdings to come back to me as a refund \u2014 but what would be the best way to use it?<\/p>\n
Reluctant to pay a tax professional for a refund I don\u2019t even have yet, I decided to rely on years of machine learning, instead, so I asked ChatGPT. It informed me the answer is different for everyone, but the right choice \u201cis usually the one that improves your long-term net worth, not your short-term lifestyle.\u201d<\/p>\n
The world\u2019s first artificial intelligence (AI) chatbot instructed me to start by asking myself two questions:<\/p>\n
The bot considers anything from 6% to 8% rates or higher to be \u201chigh interest,\u201d advising the following:<\/p>\n
If yes \u2014 this is your guaranteed return.<\/p>\n
Paying off a 22% credit card is the same as earning a risk-free 22% return.<\/p>\n
Smartest move:<\/strong> Put most (or all) of the $3,000 toward that debt.<\/p>\n I\u2019m an Accountant: 6 \u2018Big Beautiful Bill\u2019 Tax Changes That Will Benefit the Middle Class<\/strong><\/p>\n Explore More: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)<\/strong><\/p>\n Here\u2019s how ChatGPT interprets the answer to this question:<\/p>\n If no \u2014 build that first.<\/p>\n Keep it in:<\/p>\n You want:<\/p>\n It closed out the Q&A segment by advising, \u201cThis prevents future credit card debt.\u201d<\/p>\n ChatGPT offered three strategies for those on a strong financial footing with no debt and robust savings.<\/p>\n It offered these suggestions for using your refund to build long-term wealth.<\/p>\n Three thousand dollars invested at 8% average return for 25 years would equate to around $20,000 or more.<\/p>\n ChatGPT considers income-building an \u201cunderrated\u201d use of tax refunds.<\/p>\n Spend on:<\/p>\n A raise of even $3,000 per year pays back instantly.<\/p>\n Finally, ChatGPT explained that financially stable people have the luxury of splitting the windfall this way:<\/p>\n<\/p><\/div>\n