Survey: Taxpayers to spend returns on...

A large portion (37%) of tax payers are planning to use their tax refund to pay off credit card debt.

The majority of Americans say they plan to spend their tax refund on necessities this year.

The new poll of 2,000 U.S. taxpayers from Talker Research revealed that 79% believe they will get some sort of tax refund this year. More than half (52%) said that their refund is an important part of their budgeting plan, and more than three-quarters (77%) plan to spend it on necessities like rent (52%) and groceries/essential items (44%).

A large portion (37%) of tax payers are planning to use their tax refund to pay off credit card debt. Of those planning on doing so, more than half (56%) will be paying off their recent holiday purchases specifically.

Other tax return plans include putting the money into savings (22%), and spending it on a home repair/improvement project (20%).

Talker Research found that only 8% of taxpayers are planning to spend their refund on luxury items. Of those who plan to splurge on new items, new clothes (37%), entertainment (28%) and new phones (26%) are on the agenda.

The average taxpayer surveyed is hoping to receive around $1,700 back on their tax refund this year. A fifth (22%) believe they will receive more money than last year, while 26% believe the opposite. Half (51%) expect to receive the same amount as last year.

More than half (54%) of those surveyed are planning to file their taxes by the deadline, while 43% are planning to file early. Early filers say they are most motivated by receiving their refund early (55%).

“Collectively, people are learning to strategize better where their refunds are going,” said Seth Babb, head of consumer product at TaxSlayer, who commissioned the survey. “By planning ahead, people are reducing the stress associated with taxes, in some cases, creating excitement.”