It does not look hard to figure out the best way to use tax refunds when consumers feel a price-hike pinch even when it comes to meeting the basic necessities. So, what will you do if the Internal Revenue Service puts some money into your bank account after you file a tax return in the 2025 season?
The options may vary corresponding income category of the filers. But for the everyday working people it seems a general trend, seeking a little bit relief from the rising inflation effects.
According to computer network publication CNET, 38 percent of the filers would prefer to use the refunds toward paying utility bills and mortgage. Of these, 20 percent say they would pay current bills, 18 percent would pay debt, 9 percent late bills and 7 percent mortgage or house rent. Some people plan to divide the refunds in paying off all of those pressing expenses.
The CNET found these views in a recent survey it commissioned YouGov Plc to conduct. The survey sought opinions from 1,055 adults.
A CBS News/ YouGov survey in February showed that a majority of Americans, 71 percent, feel that their income is not keeping pace with inflation.
Americans have mixed views about the economic outlook as unemployment numbers and consumer confidence trends change amid President Trump’s introduction of new policies.
The CNET survey reveals that people other than those diverting funds to payment of bills and mortgage/rent would like to save or invest the money they receive. Among such people, 16 percent said they would create a savings account, 12 percent would put the money in an emergency fund and an equal percentage would like to invest in their goals.
In another sign of inflation worries, a small percentage of surveyed people indicated that they would like to use tax refunds on purchasing luxuries while just 7 percent said they would use the funds on vacationing. Fewer still plan to go for a large retail purchase such as new tech gadgets such as smartphone, laptop or tablet.
