Paying Off Debt a Common Goal for Use of Tax Refunds

Only 7% of Americans polled said they will put their tax refund into a retirement savings account.

Americans are already thinking about how they will be using their tax refund if they get one, according to a new survey by GOBankingRates.


The survey polled 1,001 Americans to find out their plans for their tax refunds and found 27% said they plan to pay off debt. On average, Americans expect to receive $3,000 as a tax refund.


Overall, 9% reported they will invest their refund. Eleven percent of respondents ages 18 to 24 and 13% of respondents ages 24 to 35 want to invest their refunds. Gen Xers ages 45 to 54 are the least likely to want to invest, with only 6% choosing this option.


Nine percent of respondents indicated they will put their tax refund in a non-retirement savings account, while 7% said they will put it into a retirement savings account.


“It’s encouraging that the survey shows that the majority of taxpayers who expect to get a refund plan to use it to improve their finances,” says Cameron Huddleston, Life and Money columnist at GOBankingRates.