Personal Finance

Tax refunds this year aren’t for spending

Americans will get back some $330 billion in tax refunds this year, and more than half of that is earmarked for savings accounts or paying down debt. That’s the highest percentage since 2007.

Some 66 percent of individual taxpayers will get a refund check in 2016. According to an annual survey released by the National Retail Federation, about 50 percent of them will plow it into savings, while 35 percent will also use it to pay down debt.

Federation president Matthew Shay put a positive spin on the numbers by saying “money saved is spending potential down the road.” And in fact, it's not all delayed gratification for retailers: A good chunk of refunds will still pay for vacations (11.4 percent) and cars and TVs (9.2 percent), according to the survey.

Bloomberg News