This time of year, people across the country are anxiously checking their bank account balances to find out if they’ve gotten their tax refund from the IRS yet, or if they still have to wait longer. While a lot of us have mentally spent that money before we ever get our hands on it, it turns out, most Americans are being pretty responsible with theirs.
According to a new survey of 2-thousand U.S. taxpayers, the majority will be using their refund for necessities, rather than luxuries, this year.
- Nearly two-thirds (64%) have already spent their tax refund or are planning to soon.
- For four in five who already spent their refunds, all that money went to essentials, while 72% who are still waiting on their refund plan to do the same.
- The top necessities tax refunds are going toward include rent (58%), groceries (48%), paying down credit card debt (29%) and home repairs (13%).
- The average refund this year is over $23-hundred, and a third of those polled got more money back this year than last.
- Top reasons that refunds were larger are that people were working more (37%), adjusted their deductions or withholdings (31%), or got a raise or promotion (16%).
- For the 28% who got less back this year, it was because they lost work (29%), moved to a higher tax bracket (21%), or had dependents age out of eligibility (11%).
- Overall, 62% felt happy and surprised by the refund they received.
- While 57% filed their return on time, 41% filed early, and only 2% requested an extension.
- Looking ahead to next year, those who plan to file early in 2026 say they want to do it to get their refund earlier (47%) and to avoid Tax Day stress (29%).
Source: Talker
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