Though more Americans will save their tax refunds this year than in past years, many will use the money they get back from Uncle Sam to pay for everyday expenses, cut their debt and treat themselves.
That’s according to a new survey by the National Retail Federation, which finds that nearly 44 percent of consumers plan to put at least some of their refunds into a savings account. That’s the highest percentage in the survey’s nine-year history, but it still leaves more than 56 percent of respondents who say they’ll spend their checks.
About 40 percent note they will use the money to pay off some of their debt. About 29 percent will use the money for everyday expenses, while 23.6 percent will use the money to treat themselves to a big purchase like a new car or TV (12.3 percent), or a vacation (11.3 percent).
“For some, tax season is a way to reward themselves, for others it is the perfect opportunity to get ahead on their bills or other expenses,” notes Pam Goodfellow, director of Consumer Insights for BIGinsight, the company that conducted the survey. “Whatever the decision, many consumers this year are looking forward to taking back some of their hard-earned money from Uncle Sam.”
The survey further finds that more than 66 percent of taxpayers are expecting a refund this year. An estimated 64.4 percent of consumers are expected to file taxes in February. About 21 percent will do so in March, while 14.3 percent will wait until April.
