This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

2013 Income Tax Refund Expectations And Intentions - TD Ameritrade Survey (Graphic: TD Ameritrade)

Nearly half (47%) of Americans expect to receive an income tax refund in 2013. Among them, 47 percent plan to save their refund money and 44 percent plan to pay off debt, according to a recent survey released by TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE:AMTD).

Survey respondents also plan to use their refund to purchase necessities (28%), invest (15%), or to donate their refund to charity (6%). Only 15 percent said they plan to spend their refund on discretionary items.

“It’s good to see that people are more likely to save their tax refund or use it to pay down debt rather than perhaps spending it unwisely,” said Lule Demmissie, managing director, investment products and retirement at TD Ameritrade. “We would also encourage people to consider investing the money for the future. Contributing lump sums like year-end bonuses or tax refunds can be a good way to bolster a retirement account.”

When it comes to men and women, an interesting shift occurs once they get married, according to the data. Single women are least likely to save their tax refund (37%), while married women are most likely (56%) to save. The opposite is true of men, as 54 percent of single men say they will save their tax refund money and only 41 percent of married men say they’ll save it.

The survey also uncovered a difference in priorities between the generations. Younger generations have possibly learned a thing or two from the financial crises they have witnessed, as nearly two-thirds (58%) of Generation Y intend to save their income tax refund, compared to just 36 percent of Generation X and 40 percent of Baby Boomers who say the same.

Demmissie continued, “As we approach this year’s April 15th deadline for filing federal and state income tax returns, investors should remember that it’s also the deadline to make contributions for the 2012 tax year to a Traditional or a Roth Individual Retirement Account ("IRA").” By doing so, investors can take advantage of the tax benefits that these retirement accounts can provide, such as:
  • federal tax-free growth and tax-free withdrawals (for those investors meeting IRS requirements, like age) ( Roth IRA)
  • the ability to deduct contributions on your income taxes now and pay the taxes when you make qualified withdrawals in retirement ( Traditional IRA)

For more information on the surveys, including key findings, visit TD Ameritrade’s online newsroom or follow the Company on Twitter, @TDAmeritradePR.


1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.69 -0.59%
FB $119.49 1.43%
GOOG $711.11 1.40%
TSLA $214.93 1.61%
YHOO $37.23 0.79%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs