NEW YORK ( TheStreet) -- Filing and paying taxes can be the financial equivalent of root canal.
That is, unless you qualify for a tax refund. That makes it more like another welcome sign of spring, like pitchers and catchers heading to Florida and Arizona or the first green shoots popping out of the ground.
And of the 143 million tax forms filed in 2012, approximately 80% earned a refund .
What is interesting, as Americans emerge from one of the worst sustained economic periods in U.S. history, is what consumers will do with their refunds this year.TD Ameritrade (AMTD) has taken a look at the issue and concluded that about half of Americans will be banking their checks from Uncle Sam this year, or at least plan on using the money to pay off debt. A significantly smaller percentage of tax refund recipients will actually spend the money. Here is how T.D. Ameritrade breaks it down:
- 47% of recipients will save their refund cash.
- 44% will use some of the money to pay off debt.
- 28% will use the cash on spending, mostly on "necessities."
- Only 15% will use their tax refund money to buy "discretionary" items.
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