Nobody likes to pay taxes. However, the upside of taxation in America is the preponderance of cash that floods into the economy in the form of refunds. And according to a survey from RetailMeNot, most of those getting refunds will spend them.
While 29% of those receiving refunds do not expect to make a major expenditure, that means 71% do have plans for the cash influx – and the leading categories are electronics, like a TV or smartphone – or vacation travel.
Consumers are taking pains to make the most of their tax situation. RetailMeNot cited a poll from The Omnibus Company which found that the vast majority of people with taxable income use some form of professional assistance to maximize their benefit from the system.
“It is encouraging to see that a majority of filers use tax experts and other resources to maximize their returns—in fact, we’re seeing larger numbers of people utilizing cost-effective online preparation services such as TurboTax to file this year,” said Emma Johnson , personal finance writer for The Real Deal by RetailMeNot. The Omnibus Company
Most people have already submitted their returns, but according to the study, 17% submit in March and another 15% wait until April 1 or later.
68% expect refunds, against only 19% who expect to owe additional money. The remainder are expecting to break even.
Of those expecting a refund, just over half – 53% — believe it will be bigger than last year’s.
RBR-TVBR observation: Consumers are getting a windfall. They’re looking for electronics and vacation bookings. You know what to do.