In these difficult economic times, Americans are also banking on their refunds to put food on the table and pay bills. More than half (51 percent) of Americans expecting a federal tax refund this year said they are using their federal tax refund to cover basic household expenses, including an alarming 65 percent who are under the age of 35.
"Although Americans are often encouraged to spend their refunds to help stimulate the economy, Americans are choosing to save themselves first. They strongly believe their top priorities are to stimulate their personal finances and keep the lights on at home. Americans are scaling back and they are doing their part to become more financially responsible citizens," said Arkadi Kuhlmann, President of ING DIRECT USA, the nation’s largest direct bank.
With uncertainty in the marketplace, Americans are doing their best to make do and save more money. The ING DIRECT survey also found:
- Almost half (46 percent) of Americans between the ages of 35 to 54 who expect to receive a federal tax refund this year intend to use it to pay off debt;
- One in four Americans expecting a federal tax refund (27 percent) plan to save their refund and one in three (39 percent) will pay off debt with their refund this year;
- For Americans who owe taxes this year, 43% stated that they will dip into savings to pay Uncle Sam.
The national online survey was conducted within the United States by Harris Interactive on behalf of ING DIRECT between March 17-19, 2009 among 2,115 adults age 18+. No estimates of theoretical sampling error can be calculated; a full methodology is available.
