More Americans than ever plan to hold on to their tax refunds this year rather than spend the money due them if they overpaid their estimated tax payments during the year. That’s according to the 12th annual tax refund survey released today (2.28.2018) by the National Retail Federation and Prosper Insights and Analytics. While anticipating being frugal, some taxpayers said they may also “splurg” a little. Here are some highlights from the survey.
What percentage of taxpayers are expecting a refund?
65% | Percentage of all taxpayers who expect a refund
The 65% who expect a refund say they will use it these ways…
49% | Put it into savings (up one percentage point from last year and the highest level in the survey’s 12-year history
35% |Pay down debt (similar to last year and far below the peak of 48 percent seen during the 2009 “great recession”
22% | Spend it on everyday expenses
12% | Use the money for a vacation
10% | Will “splurge” on dining out, trips to a spa or apparel
9% | Invest nn home improvements
8% | Will make major purchases (TVs, furniture, automobiles).
When are taxpayers filing their returns this year?
“Younger consumers are being more mindful about their hard-earned money, especially those 18-24 who have already filed their taxes this year, higher than any other age group, Prosper’s Phil Rist said. “Although this group is focused on allocating a portion of their refunds to savings, they are also more likely to use them for everyday expenses compared with any other age group.”
How do Americans plan to prepare and file their tax returns in 2018?
67% | (Percentage of Americans who will) file their taxes online
39% | Use computer software for filing tax returns
20% | Hire an accountant
17% | Use a tax preparation service
14% | Preparing their taxes manually
9% | Seek help from a spouse, friend or relative
Among those using a tax preparation service, how much do taxpayers spend?
$5.7 billion (or $133 per person) | The average amount a taxpayer who usees a preparation service will spend (about the same as last year)