Paying taxes is no where the top of your fun list, unless you’re an accountant. When it comes to getting your tax return, that’s a whole other story. An estimated $230 billion in federal tax returns will be issued this year to the nation’s taxpayers, which will fuel the economy for a bit, with people running around trying to spend their well deserved payback of loot. Tax refunds are one of the biggest paydays for the average U.S. family, especially those who are living paycheck to paycheck.
Approximately 40% of American consumers live paycheck-to-paycheck, and almost a third of those file on or before February 14th. The average tax refund is around $2,700, and if saved and spent wisely, they could take care of some important expenses and reduce long-term debt.
Filing early does have some great advantages. You would be able to pay a car loan payment of $351 for 7.7 months, pay your monthly grocery bill for a family of 4 for 3.8 months, and pay rent on a two bedroom apartment for 2.9 months. The important part of this, is that you have to be responsible and not blow your return the second you get it on the new Playstation 4 coming out soon — actually, that purchase could be fully validated.
Read on to find out what other people spend their tax returns on, and why you might want to think about just saving it to pay off debt.
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