As Americans dive in to tax season, many of them will be anxious for a fat refund, that extra bit of money that lands every spring, just in time to replace an aging washing machine or upgrade to a modern sectional sofa.
Last year the average refund was $2,860, up 2.3 percent, or $63, from the previous year, according to the IRS.
Bankrate.com released a survey on how people will spend their refunds:
• 34 percent: save or invest
• 29: necessities like food and utility bills
• 27 percent: pay down debt
• 6 percent: splurge on a vacation or shopping spree
The group’s survey also found:
• Millennials are most likely to receive refunds, and more likely to save or invest them – if they file early;
• One in four Americans filed their taxes by mid-February;
• Around half of Americans expect a refund;
• 29 percent of people will wait until April to file.
For a guide to credits, deadlines and more, click here.
Taxes are due April 18. The traditional April 15 deadline is a Saturday. The next business day is Emancipation Day, which the IRS will observe, pushing the deadline to that Tuesday.
For information about the California earned income tax credit click here. The credit applies to people who earn $6,717 or less with no children up to $14,161 with two or more children.
Contact the writer: hmadans@ocregister.com or Twitter: @HannahMadans
