Keep in mind that this is not a gift from Uncle Sam; it's a return of your own money.

Here are 6 suggestions:

1) Pay down credit card debt

Line up your cards, the amount due on each and the interest rate on unpaid balances. Then, make minimum payments on all but the highest-rate card and with that card, pay off as much as possible.

Eventually, when the highest-rate card is debt-free, go to the next highest rate card and so on.

$TIP: To learn how this works in your specific situation, use the "Roll Down Your Credit Card Debt" calculator at: www.dinkytown.com

Along with this step should come a firm new resolution on your part -- not to start charging items again that you can't pay for, thus giving yourself the same problem you just reduced or eliminated. If you have an addiction to running up credit card debt, seal your cards in an envelope, put them in your safe deposit box and begin using a debit card. 

2) Start or add to your emergency nest egg

Your goal is 6 to 9 months' of living expenses. The best risk-free places for a nest egg are money market funds or laddered (rolling) bank CDs. The money earns interest, albeit not very much, yet can be tapped if absolutely necessary.

$TIP: To find high-yielding CDs and money market funds, go to: www.moneyaisle.com

3) Add to your portfolio

This is a good time to purchase shares of companies that are paying a dividend. Look for corporations with strong management, popular products or services and low debt.

$TIP: An excellent research source for finding such stocks is the weekly, independently produced (e.g., not from a brokerage firm) Value Line Investment Survey at: www.valueline.com

For a list of large cap, blue chip S&P 500 of companies that have increased their dividends every year for at least 25 consecutive years, go to: www.marketattributes.standardandpoors.com and in the search box type "Dividend Aristocrats".

4) Fund your retirement account. Add to your regular or Roth IRA and/or your 401(k). 

$TIP: For calculators explaining these three accounts, again go to: www.dinkytown.com

5) Pay for insurance coverage. You should have health, disability, auto and homeowners (or renters) insurance. If you have children or other dependents, consider life insurance. 

$TIP: For sound advice on coverage and free publications, go to the Insurance Information Institute at: www.iii.org

6) Have fun

Although most of your refund should be used to meet the above five suggestions, adapted, of course to your particular situation. Yet, the recession, layoffs and real estate woes have cast a pallor over many Americans. So use a small portion of your refund to generate sparkle.

Go out for dinner, to a ballgame, a concert, a play. Or take a weekend getaway. Many of the chain hotels and motels have drastically reduced their rates for spring and summer. The vast majority have swimming pools, free continental breakfast and free local phone calls. And kids can often stay for free - in a room with their parents or grandparents.