When you get a tax refund it means that you paid the government too much during the year. The government got to put that money into an interest bearing account and make a profit off of it and then give you back the principal. Despite that, American's say they actually prefer to over pay on their taxes.
A new survey on Yahoo finds:
- 63% of people say they would rather get a tax refund than get more money in their check throughout the year (37%).
- 31% say they like getting a refund because it helps them save money.
- 74% of those surveyed got a refund last year, with the median amount being $2,154.
So, what is everyone doing with that tax refund?
- 67% actually save some or all of it.
- 25% use it to pay off credit card bills.
- 16% go for the splurge, buying gifts or going on vacation.
- 16% spend it on groceries.
- 10% have invested it.
- 3% use it to pay off student loans.