When it comes to the upcoming tax day 2023, Americans can’t really be divided between two polar opposites — people either get excited to do their taxes because they anticipate a refund, or they dread it because they’re pretty sure they’ll have to pay and the whole process is a pain, in the first place.

For those who do get a refund, the question is: what to do with it? Here’s how Americans plan on spending their tax returns in 2023. 

Tax Day is on April 18, 2023 

The majority of those who were surveyed will save their refunds.

Knowing that there’s a recession, people all over the world are forced to spend more. What’s surprising, however, is that based on GOBankingRates’ survey, 25.75% of the Americans they asked said they’ll put their tax return into savings — and many financial advisors and economists also think that this is the best choice for where their refund should go.

Unfortunately, the average amount of tax refunds is expected to drop by a few hundred dollars. Unlike before, where the IRS reported that the average tax return last year was $2,201, this year, we’re looking at an average of $1,963.

Other Americans will use their tax return to pay bills and settle their debts.

Another option that Americans are planning to spend their tax return on is paying off their bills. In the same survey, 21.16% said that it’s where they see their refund going; and 19.66% of those who are indebted will settle their remaining balance from credit card companies — which some experts believe is also a wise choice. Not only will it potentially relieve many of the worry and financial burden of settling their utility bills in the next few months, but it can also boost some credit card owners’ credit scores.

According to “The Financial Glow Up” author, Wanda Bowman, she said that those who have “serious” credit card debt should “use the tax refund to pay down the debt, because only earning 1% to 3% in interest on a savings account when you are paying 21% each month on credit card debt is not a good use of your money.”

A good number will invest their tax refunds!

You’d think most people are gradually losing interest (and the extra funds) to invest their money, because of — again, the inflation — but 7.58% of those who were surveyed can still quite literally afford to invest their tax return. There still remain plenty of Americans who can enjoy their financial liquidity.

A few Americans simply just need to treat themselves.

Pampering oneself may not be the main priority for most Americans this year. However, 5.99% still plan to make tax day 2023 (or thereabouts) the day to spoil themselves. Whether it be a shopping spree, salon, or spa day, it’s evident that many Americans still haven’t let the economic crisis lose their spirit.

All in All

When we look at tax day 2023, we’re looking at fewer dollars to be returned to Americans — based on the IRS report — at a time when many of us need it the most, thanks to the economic downturn and other factors. Many people forgo luxuries and like-to-haves in 2023, in favor of priorities like savings and utility bills. Others invest their tax returns in hopes of making their money grow. The odd man or woman out will go on a frivolous shopping spree or get their eyebrows waxed, but they’ll be in the minority in 2023. 

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