Mar 2, 2010
After two years of paying down debt and skipping family vacations, many Americans plan to cautiously start spending their tax refunds once again, according to the National Retail Federation. The NRF 2010 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch, found that 43.9 percent of Americans expecting a refund will pay down debt, fewer than the 48.0 percent in 2009. However, only 65.5 percent of tax payers are expecting a refund, down from 68.4 percent last year.
According to the survey, 12.5 percent of people expecting a refund plan to treat themselves or their families to a major purchase such as a new television, furniture, or car, up from 11.0 percent last year. Others will stash their refund away in savings (40.3%), put it towards everyday expenses (28.8%), or go on vacation (10.0%).
“A little bit of ‘free money’ will go a long way for Americans this year,” says Tracy Mullin, president and CEO, NRF. “Retailers planning special promotions over the next few months may find that shoppers are a bit more receptive to opening up their wallets than they have been for the past year.”
According to the survey, 60.6 percent of Americans filed their taxes by the end of February, meaning that many tax returns have already been received or are on the way. An additional 24.4 percent will file in March and 15.0 percent will wait until the last minute and file in April.
What are you spending your tax refund on? Have you filed yet? Leave us some comments and let us know.