What’s your plan for your tax return? Most planning to save it
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Tax season is upon us and that could mean either you owe Uncle Sam or you're getting a nice refund.
If you're one of the lucky ones getting cash back, what do you plan on doing with the money?
According to a survey by the National Retail Federation, 66 percent of consumers are expecting a tax refund this season but 48 percent plan to save their money for a later day. That's the second highest number on record, according to Senior Director of Media Relations Ana Serafin Smith.
She says financial security still weighs on the minds of most Americans.
"They're feeling a little bit squeezed right now with some items being priced a little bit higher than what they have been in the past. Things like energy and food and taxes — the potential of taxes going up."
Only 21 percent of consumers will spend their refunds on everyday expenses and 9 percent want to spend money on major purchases like cars and furniture.
— 7 percent will splurge on special treats like dining out, clothing or spa visits.
— 36 percent will plunk money down to pay a debt.
— Only 10 percent, mostly senior citizens, will use their tax refunds to go on vacation.
Millennials are also very mindful of how they spend their money.
"Millennials learned a lot from their parents and grandparents on holding money a little bit tighter than in the past," Smith said.
Even though more people plan on putting their tax refunds into savings, that doesn't mean they aren't going to spend it. Smith says many of these people will likely spend the money in the fall and winter, during the back-to-school rush and the holiday season.
"Those are the times of the year where you're spending more money than what you normally would any other time," according to Smith.
The NRF survey also finds that 68 percent of Americans plan to file their taxes online — the most in survey history. About 39 percent will use computer software to prepare their own taxes while 21 percent will hire an accountant.
Smith says with 18 percent planning to hire a tax prep firm, consumers are set to spend on average $132 per person to have someone prepare and file their taxes.
Jen Ursillo is the midday news anchor on New Jersey 101.5. You can reach her at Jen.Ursillo@townsquaremedia.com