Many tax refunds to be used for debt, savings

Consumers have become more focused on paying down debts and being financially responsible, and a recent survey suggests that behavior will carry over into the current tax filing season.

The survey by job hunting Web site CareerBuilder.com found that 56 percent of workers plan to use their tax refund to pay off debt they have built up.

Also, 34 percent said that they plan to put their tax refunds into savings, while 12 percent will make home improvements and 11 percent will take a vacation. Only 7 percent said that they planned to invest their tax return, while 2 percent indicated that they planned to buy a car.

Despite improving signs for the economy as a whole, the survey also found that many people are still having a hard time making ends meet. According to the poll, 78 percent said they live paycheck to paycheck, compared to 61 percent who said this in May 2008.

The Internal Revenue Service has indicated that the size of the average tax return has increased over last year, with help from provisions in the federal stimulus bill.

Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.
Posted To: Tax Ranger's Blog By: Tax Ranger On: Thursday, April 08, 2010
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