Plasma screens, day spas? Nope – filers have other plans for their IRS refunds

With economic uncertainty still lingering, many Americans plan to use their tax refunds in a fiscally conservative manner, according to a study released today by Bankrate Inc. Bankrate surved 1,002 taxpayers March 18-21. Of those, a little more than half said have received, or expect to get, a refund this year. Of those who are getting money back, 30% said they intend to pay down debt, 28% say they will save or invest, and 26% anticipate spending their refund on food or utility bills. About one in four expect to owe money. Barely 3% of those getting a refund took a refund anticipation loan. Not surprisingly, that percentage doubled for people with incomes under $30,000 Only 19% of Americans plan to adjust their paycheck withholding to avoid a big refund next year, while 71% plan on keeping their withholding the same. Among those who anticipate owing money, 63% plan on paying their taxes straight from their bank accounts. Only 6% anticipate borrowing money to pay off their tax bill. Seventeen percent aim to set up an installment plan with the Internal Revenue Service.