Tax season may be over for most, but it’s not too late to think about how to maximize your tax refund in 2025. Whether you’ve already filed, requested an extension, or are looking to boost next year’s return, there are valuable steps you can take today. This tax refund guide for 2025 walks you through tax refund strategies that can help you get the most out of your return, both now and in the future.
Amending Your Return: It’s Not Too Late
If you realize you missed out on a credit, deduction, or made a mistake, you may be able to file an amended return using IRS Form 1040-X. Whether you forgot to claim a tax credit (like the Earned Income Tax Credit or Child Tax Credit), received corrected forms (such as a 1099 or W-2), or you made a math error or omitted income. The IRS allows you up to three years from the original filing date to file an amended return. If you’re unsure whether an amendment would benefit you, consider consulting a tax professional.
Consult the IRS Interactive Tax Assistant to see if you qualify for additional credits. There are many tax credits out there that you may not be aware of. Knowing that an amended return is an option, it might be worth looking into additional tax credits. The IRS doesn’t miss a detail—and neither should you.
For Late Filers: Still Time to Maximize Your Refund
If you filed for an extension, you have until October 15, 2025, to submit your return. That means there’s still time to ensure you’re claiming every possible deduction and credit. For example, you may still be able to contribute to an IRA and have it count toward the 2024 tax year, depending on deadlines. Or you could double-check charitable donations, student loan interest, education expenses, and medical costs that exceed a percentage of your income. To comb through your return for overlooked savings opportunities, make sure to use reputable tax software or a professional preparer.
What to do with Your Tax Refund
Getting a refund? Instead of letting that money sit in your checking account, consider these smart financial moves:
- Start or Grow an Emergency Fund: A cushion of 3-6 months of expenses will reduce financial stress.
- Pay Down High-Interest Debt: Especially credit cards or personal loans.
- Contribute to Retirement Accounts: Roth IRAs, Traditional IRAs, or employer-sponsored plans.
- Make a One-Time Investment: Consider a diversified ETF or mutual fund.
- Save for a Goal: A down payment, home repair, or vacation fund.
Using your tax refund to meet long-term goals can give that one-time payment lasting impact. But how do you decide what to do? A question a lot of people have! The best approach for using your tax refund depends on your current financial priorities. In general, splitting your refund among a few targeted goals is a smart and balanced strategy. You should consider splitting your refund if you have multiple financial needs, like paying down debt while building some savings, you want to make progress on short-term and long-term goals at the same time, or you’re trying to build better financial habits, like saving regularly or investing for the future. You might put 50% toward high-interest debt, 30% into an emergency fund, and 20% into a Roth IRA.
Your tax refund usage should be more focused when you’re facing a critical financial issue, like a large debt that’s costing you a lot in interest, you’re behind on essential savings, like not having any emergency funds, or you have a clear, time-sensitive goal, like needing a down payment within the year.
At SBTC, we offer a range of savings accounts, CDs, and Trust and investment services to help you make the most of your refund. Not sure where to start? Our personal bankers are happy to help.
Beyond the Basics: Real-Life Strategies That Work
If you’re like many Americans, you view your tax refund as a chance to “catch up” — on bills, savings, or dreams that took a back seat. Whether it’s paying down debt, building an emergency fund, or finally taking that long-awaited trip, a refund can feel like a fresh start. Are you one of these three people?
- The Debt Slayer is someone who used their refund to pay off two high-interest credit cards and started the new year debt-free.
- The Home Improver is a homeowner looking to possibly sell their home in the near future who used their refund for long-delayed roof repairs, adding value and peace of mind.
- The Saver Starter is a college student who opened their first savings account and used part of their refund to set up automatic transfers for the rest of the year.
We support every stage of life, whether you’re starting fresh, planning for retirement, or managing a family trust, we can help you map your financial journey.
Plan Ahead for a Bigger Refund Next Year
Maybe you did your taxes this year and realized you ended up owing. Don’t panic! Can you fix this and look at boosting your tax refund in 2026? The time to act is now. Strategic tax planning throughout the year can lead to better results come tax season.
Use the IRS Tax Withholding Estimator to see if you’re on track. Too little withheld can mean a surprise tax bill. Too much, and you’re giving the government an interest-free loan.
Make sure to keep records of deductible expenses throughout the year, such as charitable contributions, job-related expenses (if applicable), medical bills, education and childcare expenses. You can also explore tax credits that may take some tracking as well. Keep documentation of provider payments for the child and dependent care credit. Low to moderate income earners who contribute to retirement accounts should track their payments to use the “Saver’s Credit.”
The more you contribute to retirement accounts (401k or 403(b), traditional IRA) and HSAs), the more you could reduce your taxable income.
We can help! Our knowledgeable staff can assist with setting up or managing your retirement accounts and HSAs. Learn more about our personal banking services.
Final Thoughts
Maximizing your tax refund isn’t just about what you do in March or April. With smart strategies applied year-round, like amending past returns, planning ahead, and using your refund wisely, you can make tax time work for you.
Security Bank & Trust Co. is here to support you with expert guidance and community-focused service. From day-to-day checking to long-term estate planning, our full-service banking options are designed to help you grow, plan, and succeed.
Need help putting your tax refund to work? Contact us or stop into one of our 21 locations.
