Islandia, N.Y. (Apr 8, 2003) - More than half of all Americans (59 percent) expecting tax refunds this year plan to spend their refunds on everyday purchases or to pay bills, according to a recent survey.

Among those surveyed, 66 percent said they are expecting refunds this year. Of those receiving refunds, 27 percent plan to save their refunds in a bank account, while only 4 percent will invest the money in stocks, bonds or mutual funds, according to the Cambridge Consumer Credit Index. The index is monthly telephone poll of more than 1,000 randomly selected American consumers tracking attitudes towards consumer credit. Last year, 69 percent of those surveyed received refunds and 62 percent spent the money on everyday bills, while 23 percent saved it and 5 percent invested in stocks and bonds.

On the other side of the ledger, 21 percent of Americans will owe the Internal Revenue Service when they file their tax returns. Among taxpayers that have to pay, 82 percent say they will get the money from their savings or checking accounts, while 4 percent say they will take out loans to pay. Another 3 percent plan to borrow the money from friends and family, 2 percent plan to liquidate stocks and bonds, and 1 percent will charge their taxes to their credit card. Eight percent plan to pay in other ways.

Last year, while the same percentage of respondents had to pay taxes, 81 percent paid from their checking or savings account. One percent borrowed the money from a bank, while 5 percent borrowed from friends and relatives, 7 percent liquidated securities, 3 percent charged the bill to their credit cards, and the same number paid in other ways.

-- Electronic Accountant Newswire Staff

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access