Workers will put tax refunds toward bills and savings

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When tax season rolls around, tax payers around the country give a collective eye roll followed by a deep sigh. Something akin to the reaction a teenager might give his mom when she says, “Call me so I know you made it there safely.” The response isn’t entirely unwarranted, as filing taxes can be a painful process when you start gathering receipts, finding important documents, and meeting with a tax preparer. That’s before you even look at your W-2 and think, “This is what I earned all year?”

However, the bright side of tax season is that you can end up getting some money back. I’ve heard financial experts say that if you’re getting a return back at the end of the year, you should adjust how much money is taken out of your paycheck so that you get that money throughout the year. That might be sound advice, but I have no idea. Your account would know better than I would. However, I do know that getting a big refund check in the mail is an enjoyable experience, whether it’s $15 or $500. (Of course, $500 if much more fun when you go to spend it.)

In a new CareerBuilder survey, 46 percent of workers plan to take use those refund checks to pay bills, a 10 percent decrease from last year. Hopefully that’s a sign that workers are doing better financially. Bolstering the case is that more workers this year (36 percent) will put some of that money into savings.A little more fun money

Although the survey found that financial situations are improved compared to last year, workers are still watching their pennies carefully. This year, 61 percent of workers say they live paycheck to paycheck, which is a better scenario than 2010, when 77 percent of workers a year ago. That said, that means a majority of workers are still struggling to pay their bills.

This mix of good and not-so-good news is evident when workers explained what they plan to spend their refunds on. Aside from bills and savings, here are the most common places tax refunds will go:

Check out the full release to see how else workers will spend their tax refunds. And let us know how you’ll be spending your tax refund, if you’re getting one. Bills? Savings? Something fun?

3 Comments
  1. My wife and I got back $125.00 back from the state of Illinois. We didn’t
    get a refund from the Federal. We had to pay back $92.00. Now, we
    don’t even come close to what our Republican Congressmen/Women in
    Washington made last year. These are the same Congressmen/Women
    who say it is okay for Corporations like G.E. to have a tax break . WHere is
    the fairness in this. I don’t see it. My wife and I were really counting on
    this to pay some bills, and buying our daughter a bike for summer. I guess,
    that we will have to wait until Christmas to get that bike and to pay those
    bills.

  2. I am a tax preparer and it seemed that anyone with dependents got what they paid in + in california. The standard deduction has increased to a fairly good number; you don’t want to hear it, but you and your wife should consider having more taxes deducted from your paychecks throughout the year. After Obama reduced the figures that employers withheld, many were disappointed in their returns. Illinois may be doing better than california, as most got little to no refund from cali–except if you happen to be a native american . . . .

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