NEW YORK (MainStreet) -- Tens of millions of Americans will be getting tax refunds this year, but many won't be putting theirs in the bank. Instead, one study says they'll be cashing and spending it. That's good for the economy -- but is it good for consumers?
Americans got $318 billion in tax refunds last year -- down from $328 billion in 2010, according to the Internal Revenue Service. The average refund was $2,913 last year, again down slightly from 2010 when it was at $3,003, the IRS reports.
|Getting a tax refund? Best to think of it as a paycheck rather than free money from the government.|
- 8% will use the cash for a vacation.
- 6% will buy clothes.
- 9% will make a major purchase, such as a new car or big appliance.
- 28% will use their tax refunds for "everyday expenses."
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