Tax season is here and a new report reveals how Americans are feeling about filing their returns. According to a survey from BankRate.com, about 40% of tax filers are expecting a refund and 67% of those expecting a refund have at least one worry about their refund this year.
- The most common concerns include fears their refund will be smaller than usual (29%), the refund won’t make as big of an impact because of inflation and rising costs (also 29%), and that their refund will be delayed (24%).
- The majority (67%) of Americans expecting a tax refund say the money is important to their overall financial situation and 36% say it’s “very important.”
Age, gender and income level all affect how much people rely on tax refunds, according to the survey:
- Returns are important for women, with 77% reporting that a tax refund is important to their overall financial health, compared to 59% of men.
- Three-quarters of millennials, 72% of Gen Xers and 68% of Gen Zers say a refund is important to them, compared to 54% of Boomers.
- And need correlates with income as 80% of lower-income households (those that earn less than $50-thousand) say a refund is important to them, compared to 64% of middle-income households (earning between $50-thousand and $100-thousand) and 47% of higher-income households (earning over $100-thousand).
The most popular things Americans plan to use their tax refunds for include:
- Save it - 32%
- Pay down debt - 23%
- Use it for day-to-day expenses - 12%
- Make home improvements - 10%
- Invest - 7%
- Retail purchases - 2%
- Splurge on a vacation - 4%