After a year spent scrimping and saving, it can take a lot of willpower to watch that tax refund check disappear into a pile of debt or go under lock and key in a retirement account.
TurboTax has asked hundreds of consumers how they plan to spend their refunds this year. The good news is the majority said they’d either pay down debt or funnel the cash into savings.
But the number of consumers who plan on splurging on large purchases like a car or new TV has actually increased more than 2 per cent since 2007–more than any other category.
For those expecting to owe Uncle Sam this year, at least 17 per cent said they’ll set up an instalment plan with the IRS, but the vast majority will dip into their checking account. That might be a better plan than using a credit card.
Free Tax Filing, Efile Taxes, Income Tax Returns – TurboTax.com