Shoppers expected to save tax refunds this year

Nearly half of those expecting tax refunds this year plan to save the money rather than spend it right away, a survey released Wednesday by the National Retail Federation found. tax form

The survey found that 48 percent of consumers plan to put the money they get from their refund this year into savings. This year’s level is  slightly less than 2016’s record high of 49.2 percent, the federation said.

“Financial security continues to be top-of-mind for all Americans, and consumers are hanging on to their tax refunds tighter than ever,” said the federation’s President and CEO Matthew Shay . “Consumers are leveraging their tax returns to build up their savings, but that’s good news in the long run because money saved today is money that can be spent down the road, particularly during the back-to-school and holiday seasons later this year.”

Only 20.9 percent of consumers will spend their refunds on everyday expenses, 8.7 percent will use them for major purchases such as a television, furniture or a car, and 7.6 percent will splurge on special treats like dining out, apparel or spa visits — the lowest levels in the survey’s history, the federation said.

About 35 percent of consumers will use the money to pay down debt, up from 34.9 percent last year but far below the peak of 48 percent seen in 2009, the federation said.

 

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