Get Tax Refund on Amazon Gift Card
If your tax provider offers to refund your taxes on an Amazon Gift Card or any other type of gift card, say no.
Why? Because a tax refund on a gift card means you spend it on new purchases instead of using the money to pay off debt, create a reserve fund, or save it for the future.
And yes, tax refunds on gift cards have become commonplace for several years now. As reported by Money.com , H&R Block is currently offering a bonus to any taxpayer wishing to invest in the following Amazon basket:
As Americans prepare to pay their taxes by the April 15 deadline, the tax authority, which processes over 20 million tax returns each year, is offering a special offer for self-filing people who use its software: Choose to get all or part (from 100 up to $ 9,000) of your federal Amazon Gift Card refund in lieu of cash, and you will receive an additional 4% of the amount owed to you.
In other words, H&R Block will turn that $ 2,800 into $ 2,912 if you’re willing to spend money on … things.
Adding an extra 4% to your tax refund might sound tempting, but remember that you won’t actually be saving money — you have to give it to Amazon. And of course, you can get new clothes, groceries, or other essentials from your tax refund gift card, but unless you invest the equivalent amount of money in debt / savings, etc., you really won’t get ahead for a long time.
So don’t give your gift card a tax refund. If you need or want to spend money on tax refunds on essentials like diapers or groceries, do so, but don’t put yourself in a situation where the only thing you can do with a tax refund is spend it.