You should be thrilled to get that little envelope from the IRS this year. That’s because the average American taxpayer is due a tax return of $2,740 from the government – no small change in such a glum economy! Here are five things you can do with that check to not only help your own economic situation, but to give the overall economy a boost, too!

1. Pay your credit card or any other debt you have. This is a no-brainer. It is absolutely a much smarter idea than going out and buying a new purse or splurging on a long weekend trip. The more money you owe, the more interest you have to pay. This may include your student loans or unpaid utility bills, as well. Pay off those with the highest interest rate first. Smart Money offers four ways to help shrink your debt. And you’ll join the more than 50 percent of other Americans recently polled who said they’re shoveling this year’s returns toward their bills.

2. Stash some money away to help accumulate at least three months worth of pay if you’re worried about losing your own job. That’s the standard cushion recommended. And who would blame you?! With the unemployment rate now at 8.5 percent with 13.2 million people out of work as of last month, it might be smart to have a couple more months saved up. Make sure your accounts are in a bank that is FDIC insured.

3. Put money into your 401K or IRA. Open an IRA if you don’t have one, but you also may want to consider a Roth IRA. If your employer also contributes to your 401K, even better. Sock away as much money as you can. Many baby boomers hoping to retire soon put those plans on hold when the economy – and their savings – tanked. Massachusetts financial planner Debra Neiman tells Kiplinger that in 2009, if you’re 50 or older, you can put $22,000 in your 401K and $14,000 into a simple IRA. People over 55 should also still be adding to their retirement fund. Also, try to avoid these ten major retirement risks. What else can you do with your refund? You can buy stocks, since many are dirt cheap right now. Or perhaps consider bonds. But low-fee index funds traditionally perform better than actively managed mutual funds without the risk of individuals stocks. Of course, it goes without saying, you should do your research before throwing your money into anything.

4. Refinance your home mortgage. Thanks to current low lending rates, homeowners can lock in lower rates and save money. President Obama himself is encouraging people to refinance. He said April 9 that seven to nine million people could refinance, saving $1,600 to $2,000 a year. "That is money in their pocket," Obama said this month. "We are at a time where people can really take advantage of this, and what we want to do is to send a message that if you are having problems with your mortgage — and even if you’re not, and you just want to save some money — you can go to makinghomeaffordable.gov." Makinghomeaffordable.gov is the government website set up to aid homeowners in determining whether they are eligible for home affordable refinance, and it can help put you in touch with mortgage and housing counselors. Some experts say you need between $2,000 and $3,000 to pay for typical closing costs associated with refinancing. They also recommend checking out online banking calculators to see whether refinancing is right for you.