It’s tax season and if you’re lucky, Uncle Sam will be sending out your reimbursement for overpayment. I filed my taxes early and have already received my refund (and put it toward a new AC unit.). According to a February 2018 survey by Prosper Insights and Analytics and the NRF, only 14.1 percent planned to wait until April to file, meaning many consumers are like me and already have their reimbursement checks in-hand.
According to a survey by Qualtrics and Credit Karma Tax, more than half of taxpayers are expecting a refund in 2018. Tax refunds are often treated like found money and brands across the country are looking at ways to capitalize on this consumer spend.
So, what are the majority of people spending their “extra” cash on this year? Marketing research firm MaritzCX surveyed a representative sample of 600 U.S. citizens between March 9-13, 2018 to find out. The study shows one key theme: most consumers are planning to spend their tax refund responsibly. Savings tops the list of what people plan to do with their tax refund at 32 percent, followed closely with paying bills at 31 percent and paying off loans at 6 percent. Taking a vacation and making home improvements (like my new AC unit) tied at 8 percent.
In a recent press release, MaritzCX shared details from the survey findings. I’ve summarized a few below.
- Wealthier ($150,000+ annual income) individuals are more likely to save their refund (49 percent).
- Nearly 20 percent of those earning less than $25,000 plan to invest their refund.
- One percent of respondents plan on donating a portion of their refund to charities.
- Of those planning on using their refund for a vacation, 40 percent will be relaxing on a beach in the U.S. (20 percent) or abroad (20 percent).
When asked about preferred filing method, 45 percent surveyed used tax preparation software to file, followed by a professional tax preparer at 29 percent and private CPA at 10 percent.