Taxpayers reveal plans for refunds as IRS confirms $93B has already been paid

Taxpayers reveal plans for refunds as IRS confirms $93B has already been paid
Most people are expecting a refund, and they could be getting more than they think.
MAR 04, 2024

More than two-thirds of U.S. adults are expecting a tax refund this year, and the IRS has confirmed a larger average refund so far.

But how do those who get money back intend to use it? A Bankrate.com survey asked more than 2,000 people about their intentions for a refund, with boosting savings the top answer given (28%) ahead of paying down debt (19%) and paying for everyday expenses (11%).

Meanwhile, the IRS said that through February 24 it had delivered almost 29 million refunds with an average amount of $3,213, which was up 4.3% year-over-year. It also said that its Free File Guided Tax Software service – which can be used by those with gross adjusted Income of up to $79,000 – has seen a year-over-year increase of nearly 10% so far this filing season.

Boosting savings as the No. 1 intention for refunds compares to last year’s main aim to reduce personal debt. The share of respondents who said this year that they planned to pay down debt was the lowest of eight similar surveys since 2015, despite recent data that shows that 36% of American households are burdened with more credit card debt than they have in emergency savings.

While debt reduction takes second place for most poll participants, the second choice of Gen Zs was investing.

The strong focus on building up savings may be due in part to a desire to one day buy a home even though the cost of living, limited incomes, and debt burdens stand in the way, a recent study found.

"Americans are planning to be practical with their tax refunds this year,” said Bankrate senior industry analyst Ted Rossman. “While boosting savings is a noble goal, debt payoff is important, too. Many households would be well-served by putting some of their tax refund toward debt payoff and some toward savings. It doesn't have to be all or nothing. Consider carving out a little bit of fun money while you're at it, too."

Latest News

Devoe: record-breaking RIA M&A run led by private equity's consolidator comeback
Devoe: record-breaking RIA M&A run led by private equity's consolidator comeback

A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year—their highest share since 2021 according to Devoe & Company'.

Fintech bytes: Advisor360, Nitrogen unveil AI updates for advisor productivity
Fintech bytes: Advisor360, Nitrogen unveil AI updates for advisor productivity

Also, Advisor CRM announces a new data integration partnership to ease the pain of client onboarding.

Bank of America, Morgan Stanley earnings roll despite roiled markets
Bank of America, Morgan Stanley earnings roll despite roiled markets

Meanwhile, Merrill Lynch intends to continue building its alternative investment platform for wealthy clients.

David Fischer of Independent Financial Group talks culture, future growth
David Fischer of Independent Financial Group talks culture, future growth

The co-founder of IFG discussed with InvestmentNews the unique opportunity that remaining independent offers to build a successful firm.

Wealth Consulting Group taps veterans from Envestnet, Emigrant Partners for new advisory board
Wealth Consulting Group taps veterans from Envestnet, Emigrant Partners for new advisory board

Three industry leaders will join the hybrid RIA's president and LPL alum, Andy Kalbaugh, to help guide its organic and merger-based growth strategy.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.