About two-thirds (64%) of American taxpayers obtained a tax refund in 2024, in line with IRS information reported by Bankrate.
How a lot did they get, on common? And what did they usually spend it on?
The reply to the previous can differ considerably relying on the place the taxpayer lives.
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The common refund for tax 12 months 2022 — the newest accessible full-year information — was $4,381, per a brand new report from LendingTree. Nevertheless, for the third 12 months in a row, Wyoming residents noticed the biggest common refunds at $6,367, the information revealed.
Taxpayers in Florida and the District of Columbia obtained the next-highest refunds at $5,934 and $5,848, respectively, in line with the report. Moreover, Florida residents loved probably the most important proportion acquire 12 months over 12 months at 18.6%.
West Virginia residents have been left with the bottom common tax refunds at $3,183, adopted by these in Maine ($3,199) and New Mexico ($3,394), per LendingTree.
Two-thirds (66%) of People plan to place their refunded cash to sensible use: 34% intend to repay debt, whereas 32% need to place it in a common financial savings account, the report discovered.
One other 16% of tax refund recipients have been not sure what they’d do with the cash, 14% deliberate to make use of it for a trip, 14% supposed to reserve it for a big buy like a home or automotive, and 11% had allotted it to assist relations, per the information.
Fewer respondents had plans to stash their refunds in a retirement account (10%) or make investments them within the inventory market (9%).
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“There’s nothing fallacious with taking a bit of the return and having some enjoyable with it,” LendingTree’s chief client finance analyst Matt Schulz says, “however in case you have high-interest debt and also you’re working towards large long-term monetary targets, the overwhelming majority of the refund ought to go towards these issues.”
