You know Americans love tax returns, but do you really know how they spend it?
63% of Americans spend their entire $3,120 tax refund.Data provided by IRS.gov & NRF
The average tax refund in 2015 is $3,120 (as of March) – which is nearly a 10% increase from the 2014 national average tax refund.
Of all Americans filing their taxes this year, nearly two thirds are expecting to receive a refund. How do they plan on spending it?
- 47% stated they will save all or part of it
- 39% will use their refund to pay down debt
- 25% will treat it as an extra paycheck and use it for everyday expenses
- 13% will take a much overdo vacation with the funds
- 11% will use it for a major purchase: a TV, upgrade their home, or a new vehicle
- 10% will splurge on something small: nice dinner out, new wardrobe, or a trip to the day spa
Do those stats surprise you?
Even more interesting is the comparison how tax refunds are spent between men and women. Scroll down the infographic to check out the rest of the data points.
Click on the infographic below to see a larger view:
If you receive a large tax return each year, consult with a professional tax advisor or CPA to help reduce your tax liability and ensure you aren’t paying too much in taxes throughout the year.
What are you doing with your tax refund in 2015? Let us know in the comments below!