Those expecting a refund are most likely to pay down debt or pay off bills: Survey
Are you expecting a tax refund this year? If so, you belong to a shrinking majority, according to an American Express survey of roughly 1,500 adults.
Fifty-nine percent of respondents report that they expect a refund this year, a decrease of 8 percent from last year. Meanwhile, 19 percent expect that they will owe money, an increase of 46 percent from last year. In Affluent households with a net worth of more than $100,000, that percentage jumps to 28 percent, an increase of 33 percent from 2012.
So, you’ve got your tax refund; what do you intend to do with it? Slightly more of these financially fortunate Americans plan to save it, up from 22 percent last year, while 28 percent plan to splurge on themselves, their family, travel, home improvements, or a big ticket item. This is down from 30 percent last year. The percentage of those who plan to use their tax refund to pay down their debt or pay off bills was basically unchanged at 37 percent.
Half of Americans plan to pay their tax bill out of their checking account, while nearly one-fourth said they will take the money out of their savings. Fourteen percent said they will use a credit card, and 11 percent said they will have to set up a payment plan or arrange an extension. Another 11 percent said they have no idea.
Whose responsibility is it to teach Americans how to save? Read about it here.
Other tax tidbits in the American Express survey:
· 69 percent of Americans like to get a jump on their tax preparation, while 14 percent believe that tomorrow is another day to work on them
· 39 percent will purchase tax software or visit a tax website
· 34 percent will go to a tax preparation company or hire an accountant.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.