This is what most North -Americans plan to spend their tax returns

A new study found that a third of the North -Americans plan to spend their tax return half a year in advance.

The new North 2,000 -American taxpayers found that 79% think they will get some type of refund this year and many of them have already planned to spend it.

Most (52%) said that their tax return is an important part of their budget plans and 77% plan to spend their return on needs.

Between the needs were invoices such as rent (52%), food and essential items (44%) and credit card debt (37%).

More than half (56%) of those who spend the credit card debt reimbursement money are specifically addressed to the purchases of the holiday season.

In the meantime, 8% plan to spend their return on luxuries. They spend their return on new clothes (37%), entertainment (28%) and new phones (26%).

Taxslayer and carried out by Talker Research, the study found that the average person hopes to receive about $ 1,700 in tax refund money this year.

A fifth (22%) believe that it will end with more money this year than the last one, while 26% believe the opposite. Half (51%) expect to receive approximately the same amount.

Last year, 12% said they got a larger tax return than expected, while 20% recalled less than they expected.

Many respondents waiting to receive more this year said that it was owed to more money on their W-2, earning more money in the last year and having a newborn.

Those who expect to receive less shared potential causes why: Losing their job, due to taxes, children aged by adulthood and increasing tax rates.

“Collectively, people are learning to better strategize where their returns go,” said Seth Babb, head of taxslayer consumer product. “Planning in advance, people reduce stress associated with taxes and, in some cases, create excitement.”

The study also found that, while 54% are planning to submit their taxes within the deadline, 43% plan to submit.

The first files said they are motivated to receive their return earlier than others (55%), without needing to cope with the stress of doing it before April 15 (43%) and having presented at the beginning of last year (24%).

As they are preparing to file this year, 37% said they plan to use DIY fiscal software and 19% choose to do it manually.

“The presentation is a large part of the reduction in tax -related stress,” Babb continued. “The previous people file, rather they can access their returns and spend the one planned.”

What are the main needs and luxuries that people spend their tax returns?

Respondents were asked to choose all the needs and luxuries in which they would spend their returns. This is what they said:

Needs

Invoices, such as rent and public services, 52%

Food and essential goods – 44%

Credit Card Debt: 37%

Savings Accounts: 22%

Repair/improvement of home – 20%

Luxury

New clothes: 37%

Entertainment: 28%

A new phone: 26%

Buy gifts for nearby people: 24%

One night in the city – 23%

Survey Methodology:

Talker Research responded to 2,000 north -Americans of the taxi drivers; The survey was commissioned by Taxslayer and was administered and made online by Talker Research between December 13 and 20, 2024.