- Fifty-five percent of Americans polled expect to get, or have received, a tax refund this year while 24 percent expect to owe;
- While 84 percent plan on using their money to pay down debt, save, invest, or use the refund for everyday necessities, only seven percent plan on using their money on "fun" activities like shopping or taking a vacation;
- Within that 84 percent of fiscally conservative Americans, 30 percent intend to pay down debt, 28 percent say they will save or invest, and 26 percent anticipate spending their refund on food or utility bills;
- While just three percent of those getting a refund took a refund anticipation loan, among people with incomes under $30,000 that number is doubled at six percent;
- Only 19 percent of Americans plan to adjust their paycheck withholding to avoid a big refund next year while 71 percent plan on keeping their withholding the same;
- Among those who anticipate owing money, 63 percent plan on paying their taxes straight from their bank accounts. Only 6 percent anticipate borrowing money to pay off their tax bill;
- Additionally within those who owe money, 17 percent plan on setting up an installment plan with the IRS. But be warned, setting up a plan with the IRS includes interest, late fees, and a user fee to begin installment payments.
"Since a tax refund is often the biggest windfall many Americans receive all year, it is imperative to use it wisely," said Greg McBride, CFA, senior financial analyst for Bankrate.com. "Padding emergency savings, establishing or boosting an IRA, and paying down high interest rate debt are all great uses. But go one step further and adjust your paycheck withholding so you're not giving an interest free loan to the government in 2010 also."
