What Most Americans Plan To Spend Tax Refunds On

Doing your taxes is an annual chore that most of us really don’t look forward to, but for some lucky folks, it comes with a silver lining - a refund. More than three-quarters (79%) of U.S. taxpayers think they’ll get some sort of a refund this year, according to a new survey. It finds the average person hopes to get around $17-hundred back this year.

The poll of 2-thousand U.S. taxpayers finds that one in three plan out how they’ll use their tax refund half a year before they get it. More than half (52%) say that refund is an important part of their budgeting plans. So, what’s everyone doing with that money?

  • For 77%, they’ll spend it on necessities, including bills like rent (52%), groceries and essentials (44%) and credit card debt (37%).
  • More than half (56%) of those paying down credit card debt are targeting their holiday season spending.
  • Nearly a quarter (22%) of those surveyed plan to put their refund in their savings account, while 20% will use it for home repairs and improvements.
  • But 8% are planning to splurge on luxuries with their refund, buying things like new clothes (37%), entertainment (28%) and new phones (26%), while a quarter of them will buy gifts for people close to them and 23% will spend it on a night on the town.
  • Compared to last year, 22% of respondents think they’ll get more money back this year, while 26% expect to get less and 51% believe it’ll be about the same amount.
  • While there’s still plenty of time to file before Tax Day on April 15th, 43% of respondents are planning to file early this year.
  • Over half (55%) are motivated by getting their refund back earlier, and 43% just want to avoid the stress of waiting until the last minute to file.

Source: SWNS Digital