(CBS NEWS) Kathy Kristof, May 5, 2017 — Getting a tax refund this year? The IRS reports that it’s returning nearly $3,000 to the average American this tax season. And though your March Madness buddies may be unanimous in believing you should use yours for a high-definition big-screen TV, your empty bank account — and big credit card bills — say otherwise.

The more vexing question is this: Would you be better off paying off debt or using that refund to start a savings account? The surprising answer is that if your income is low, saving for retirement might provide twice the aftertax return than you would realize from paying off debt.

The reason is a little-known break called the “Retirement Savings Contributions Credit,” or the “savers credit” for short.

Source: Little-known tax credit can deliver a 60 percent return – CBS News