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.
YOUR TAX REFUND COULD BE BIGGER THIS YEAR – HERE'S WHY
"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.
MADE MONEY ON VENMO OR PAYPAL LAST YEAR? WHAT YOU NEED TO KNOW ABOUT YOUR TAXES
"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."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
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.