It’s that time of year when millions of Americans receive their annual tax refunds. While some of those tax payers will put their money away for a rainy day, most will take the money from their tax refund and buy items they want and need.
The team at Deal News conducted some researcher and found that 76 percent of American’s will receive a refund. While the average tax refund is expected to fall by 3.8 percent compared to 2011, that still means millions of taxpayers will have an average of $2,803 back in their pockets.
In 2013, more people will use the money they receive to pay down debt. According to the study, 44 percent of tax refund receivers will pay down debt; that’s an increase of six percent year-over-year. The study also found that 34 percent will save their money for a rainy day, and the remaining 22 percent will spend their hard earned tax refund.
So what exactly do people plan to buy with the $2,803 they hope to receive? Here is the breakdown:
Forty-four percent of buyers will spend their cash on electronics, a five percent increase over 2011 tax rebate numbers. Thirty percent of tax refunds will be spent on travel for a vacation; that number is compared to 26 percent in 2011. The remainder of tax refunds will be spent on home and garden, clothing and accessories, media and entertainment, and 11 percent going towards everyday expenses.
The study further examines how much money the average person plans to spend, how much money they will save, and how much of their rebate will go towards paying down their bills.
Check out the full infographic below: