Americans Get Too Much In Tax Refunds

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.

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