Here's how Americans plan to spend their tax refunds

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American taxpayers expecting a refund successful 2024 opportunity they already person an thought of what they will do pinch nan money. A mostly opportunity location won't beryllium immoderate near complete for savings aft they parcel it out.

The mostly of taxpayers tin typically expect to person a refund from Uncle Sam, and for galore families, nan money tin beryllium substantial. Nearly three-quarters of filers received a taxation refund successful 2023, pinch an mean costs worthy astir $3,176.

A caller study released by Assurance IQ recovered that of nan 72% of consumers expecting a refund from nan Internal Revenue Service this year, much than a third, 36%, scheme to salary disconnected indebtedness pinch nan funds, and 30% scheme to usage it to drawback up connected their monthly bills.

Less than half, 42%, scheme to put astatine slightest immoderate of their refund into savings.

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"Inflation has slowed, but higher prices proceed to effect consumers' financial wellness," said Kate Long, user financial wellness advocator astatine Assurance IQ. 

Notably, nan study recovered that 29% of consumers are considering utilizing their taxation refunds to salary for security as premiums proceed to rise – including astir half (48%) of Gen Z.

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"Lower income households who unrecorded paycheck to paycheck person been hit difficult by inflation," Long said. "An influx of cash, specified arsenic a taxation refund, tin beryllium a lifeline that helps them drawback up connected outstanding indebtedness aliases screen captious expenses, for illustration insurance."

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Around 23% of consumers expecting a refund scheme to usage their taxation refund connected thing "fun," nan study found, while 19% scheme to put it and 3% scheme to donate it. Around 12% are undecided connected really they will walk it.

FOX Business' Megan Henney contributed to this report.