April 2026

Corbett Road
23 minutes ago
9 min read

What Do Americans Do with Their Tax Refunds?

More than 100 million taxpayers — representing about 63% of individual returns — received refunds in 2025, with an average refund amount of $3,167. Here’s how they planned to spend their refunds.

Source: Internal Revenue Service, January 2, 2026; Experian, April 16, 2025

How AI Is Helping Modernize the IRS

After years of slow audits, taxpayer frustration, and seemingly endless mounds of paperwork, the IRS is now turning to artificial intelligence (AI) to overhaul its technology infrastructure, strengthen compliance, and improve taxpayer services. With funding from the Inflation Reduction Act (IRA), these modernization efforts represent a fundamental change in how the agency operates.

The first area in which the IRS is leveraging AI to help improve its operations is audit selection and fraud detection. Specifically, AI is aiding the IRS in optimizing its audit and compliance functions. For individual tax returns, AI models select a representative sample of returns to audit and identify returns likely to contain errors and taxpayers who may owe additional taxes. For partnerships, the agency uses two AI models to help prioritize partnership returns for audit. The significant increase in the number of large partnerships since 2002 has made it more difficult for the agency to identify taxable income and potential tax evaders. Because large partnership tax returns are complex, the IRS conducts very few of these audits; however, AI can select the highest-risk large partnership returns for audits.¹

AI is also helping to provide better taxpayer service. Since 2022, the agency has deployed AI-powered chatbots and voicebots to provide self-service assistance for payment collection questions, such as payment options and notices. These tools can help reduce call wait times and free up IRS agents to focus on more complex issues requiring human intervention.² The IRS plans to expand its use of a commercial AI agent to help with tasks such as case summarization and searches that could increase efficiency amid an IRS workforce reduction.³To assist in processing the millions of paper tax returns received annually, the IRS is piloting AI-powered tools to implement advanced automated scanning and AI-assisted data extraction to help reduce manual data entry and minimize data errors.

In 2024, the U.S. Department of the Treasury reported that AI helped prevent and recover more than $4 billion in fraudulent or improper payments.⁴ While this shows some progress has been made with AI initiatives, the modernization effort, which includes AI government oversight bodies, such as the Government Accountability Office (GAO), have warned about the need for transparency, safe data, and ongoing monitoring to ensure fairness in audit selection. Despite these concerns, AI modernization efforts will continue to move forward, and the IRS has stated that it has made considerable progress on its long-term IT modernization plan to better serve taxpayers.⁶

1, 5) GAO.gov, June 2024; 2) IRS.gov, 2025; 3) Axios.com, 2025; 4) U.S. Treasury Department, 2024; 6) Federalnewsnetwork.com, September 2025

Be Storm Smart: How to Prepare for Extreme Weather

According to a 2025 report from Realtor.com, an estimated 26.1% of U.S. homes are exposed to at least one type of severe or extreme weather risk.¹ Extreme weather can strike unexpectedly, resulting in costly damage to your home and putting your family’s safety at risk. While you can’t control the forecast, you can control how prepared you are for it.

Protect your home before the weather turns wild Fortunately, there are proactive steps you can take to help protect your home from extreme weather, but it’s important to start the process before the storm season starts. To help prepare your home for wild weather, be sure to:

Inspect and repair roof shingles and flashing
Clean your gutters and downspouts
Trim overhanging tree limbs and secure outdoor items
Check windows, doors, and shutters to make sure they are properly sealed/reinforced

If you live in a fire zone, keep roof surfaces and gutters free of flammable materials, such as pine needles, leaves, and branches, and consider installing fire-resistant roofing and/or siding materials.

Be prepared with a plan

Extreme weather can sometimes cause power outages that last for days. It can also result in downed power lines, fallen trees, and/or flooding that make roads impassable. Know evacuation routes and have an emergency communication plan that identifies a safe place to meet in the event that family members become separated. Keep important addresses and phone numbers readily accessible and identify a place where you can safely stay for an extended period of time, if necessary. In addition, assemble an emergency kit with the following items:

Food/supplies. Stock up on several days’ worth of nonperishable food and bottled water. Store other items that are specific to your family’s needs, such as infant formula, diapers, pet food, clothing, and blankets.

First aid/medicine. Be prepared for possible medical needs by having a first-aid kit. Also talk to your doctor about obtaining an extra prescription for important medications you take.

Communication/safety items. Make sure your cell phones are fully charged. Also gather additional safety items, such as matches, flashlights, batteries, and a battery-powered AM/FM radio. Have copies of your driver’s license or identification card and other important documents.

Make sure your insurance coverage can weather the storm Review all of your insurance policies to make sure that you have appropriate coverage for your property and belongings. Consider insuring your home and its contents to their full replacement cost, including any new additions, remodels, and furniture. To assist with extreme weather-related insurance claims, be sure to take pictures/videos and make an inventory of your home and valuables in case they are damaged or destroyed.

If your home suffers severe damage from extreme weather, you’ll need to file a claim with your insurance company. To make the claims process easier, take pictures to document the damage as soon as possible. While your claim is being processed, take steps to prevent further damage (e.g., putting a tarp on a damaged roof), since the insurance company may not cover anything beyond the initial damage to your property. Claims may be paid up to policy limits.

Keep in mind that certain types of extreme weather damage (e.g., flood damage) may be excluded from a standard homeowners policy, but separate coverage is often available. Contact your insurance agent or company to determine if you need to purchase additional insurance tailored to the risk in your area. If your home is deemed to be at high risk of extreme weather due to its geographic area, you may want to look for an insurance company that specializes in high-risk home insurance. High-risk policies often have significant exclusions and policy limits and are more expensive than traditional home insurance policies. However, they can provide coverage to a home that might otherwise be uninsurable.

For more information on extreme weather preparedness, visit the U.S. Department of Homeland Security’s website, ready.gov.

1) Realtor.com, Housing and Climate Risk Report, September 3, 2025.

The Evolution of Retirement Savings

The retirement savings landscape has changed dramatically over the past 50 years, starting with the introduction of traditional IRAs in 1975. The 1980s and ‘90s brought 401(k)s, other workplace plans, and Roth IRAs; the early 2000s welcomed health savings accounts (HSAs); and over the last decade, state-sponsored retirement savings plans came into existence. Most recently, 2025 introduced 530A accounts (also known as “Trump Accounts”), which could have a positive impact on wealth-building for some of the youngest Americans. How might these and other developments affect tomorrow’s retirees?

Automatic features In early December 2025, The Wall Street Journal reported that the number of “401(k) millionaires” reached the highest level ever, with more plan money invested in the stock market than ever before. One contributing factor could be the increase in automatic and default plan features over the past two decades. Designed to help make work-based retirement saving easy, such features include automatic plan enrollment, auto contribution increases, and diversified default investments that include stocks. Since research shows that employees who are automatically enrolled tend to remain in the plan and in the default investments, automatic features are likely here to stay. In fact, the SECURE 2.0 Act passed in 2022 included a provision that required most new retirement plans established after December 29, 2022, to include certain automatic features.

State-sponsored plans However, not all workers benefit from automatic features — or retirement plans in general — since just 54% of businesses with fewer than 50 employees offered a retirement plan in 2024. In recent years, the federal government has tried to address this through tax benefits designed to encourage small businesses to adopt plans. Interestingly, state legislation may have an even stronger impact. Why? Unlike federal incentives, many current state laws require employers to offer a retirement savings plan.

As of January 2026, 20 states have enacted state-sponsored retirement programs, growing at the rate of one to two per year since 2012. Of the 20, 17 are mandated auto-IRA programs. Every state except South Dakota has at least explored offering such plans.

Saver’s Match Since the first tax benefits associated with IRAs, the federal government has encouraged workers to take charge of their own futures. Currently, low-income workers receive a federal tax credit for saving in a workplace plan or IRA. However, beginning in 2027, this Saver’s Credit will be replaced by a Saver’s Match. Through this program, the federal government will match 50% of an individual’s contributions up to $2,000 (maximum $1,000 match), to be invested directly into their retirement accounts. Income limits apply.

530A accounts Beginning in July 2026, parents and guardians may open these new accounts to help children get a head start on the road to retirement. Employers, parents, and others may make contributions to the accounts for any eligible child under 18. Moreover, for all eligible children born between January 1, 2025, and December 31, 2028, the federal government will make one-time $1,000 contributions. Total annual contributions cannot exceed $5,000 per year, per child, and accounts will be invested in lowcost index investments. Distributions will not be permitted until the child reaches age 18, at which time, the accounts generally will be subject to the same rules as a traditional IRA.

Is the future bright?

When viewed together, automatic plan features, state-mandated plans, the Saver’s Match, and 530A accounts paint a potentially bright picture for today’s younger generations; however, legislators will need to ensure that programs are designed to be easy to use and easy to understand. Awareness and education will be keys to success.

1) The Wall Street Journal, December 8, 2025 2) Plan Sponsor Council of America, June 25, 2025

3) TIAA Institute, September 2024

4) PLANSPONSOR, August 1, 2025

5) Georgetown University, January 2026

Don’t Overlook the Value of Social Security Survivor Benefits

Life insurance might play a central role in helping to protect your family’s financial future. But did you know that another important source of income for your survivors could be Social Security? If you earned enough work credits by paying Social Security payroll taxes, certain family members may be eligible to receive Social Security survivor benefits based on your record. Family members who might qualify include:

Your spouse or former spouse who is age 60 or older (50 or older if disabled)
Your spouse or former spouse at any age, if caring for your child who is under age 16 or disabled
Your unmarried children under age 18 (19 if attending K-12 school full time, or any age if disabled before age 22)
Your dependent parents age 62 or older

The number of work credits you need depends on your age when you die. The younger you are, the fewer credits you’ll need for survivor benefits, but no one needs more than 40 credits (10 years of work). Under a special rule, your children and your spouse caring for your children can get benefits if you have at least six credits (one-and-a-half years of work) in the three years before your death.

This is a general overview — the rules are more complex. For more information on eligibility requirements, contact the Social Security Administration at (800) 772-1213.

How much will your survivors receive? An eligible family member will receive a monthly survivor benefit based on your average lifetime earnings. The higher your earnings, the higher the benefit. This benefit is equal to a percentage of your basic Social Security benefit and depends on your survivor’s age and relationship to you.

For example, at full retirement age (FRA) or older, your spouse may receive a survivor benefit equal to 100% of your basic Social Security benefit. However, a spouse who has not yet reached FRA at the time of your death will receive a reduced benefit, generally 71.5% to 99% of your basic benefit (75% if your spouse of any age is caring for a child under age 16).

Your dependent child may also receive 75% of your basic benefit. However, the total amount of money that can be paid to your family each month is generally limited to about 150% to 180% of your basic benefit.

You can find out more about future Social Security benefits by signing up for a my Social Security account at the Social Security website, ssa.gov; this allows you to view your online Social Security Statement. Your statement contains a detailed record of your earnings, as well as estimates of retirement, survivor, and disability benefits.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.

Federal Student Loans: How Much Do Borrowers Owe?

Millions of Americans have federal student loans. This chart shows the distribution of borrowers by outstanding loan balance.

As of June 2025, 32% of borrowers owe less than $10,000 (representing 4% of all outstanding debt), 43% of borrowers owe between $10,000 and $40,000 (representing 24% of all outstanding debt), 15% owe between $40,000 and $80,000 (representing 23% of all outstanding debt), and 11% owe more than $80,000 (representing 49% of all outstanding debt). All told, 75% of borrowers owe less than $40,000.

Source: College Board, Trends in College Pricing 2025 (numbers may not equal 100% due to rounding)

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company, Spire Securities, LLC., a Registered Broker/Dealer and member FINRA/SIPC.

Neither Spire Wealth Management nor Corbett Road Wealth Management provide tax or legal advice. The information presented here is not specific to any individual’s personal circumstances. Please speak with your tax or legal professional.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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