Consumers Filing Early Expect Tax Refund
Hoping to minimize debt, most consumers are filing their taxes early this year. The National Retail Federation’s (NRF) 2007 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch for NRF, found that nearly 62 percent of consumers filed their income taxes this past January and February. One-in-five consumers plan to file in March and close to one-in-six consumers plan to wait until April to file their taxes. According to the survey, 69.6 percent of consumers expect to receive a tax refund this year.
“Many people look at their tax refunds as ‘bonus bucks,'” said NRF President and CEO Tracy Mullin. “Retailers begin to offer special sales and promotions as early as May, knowing that it is hard for consumers to resist spending at least a small portion of their refunds.”
Consumers are continuing to focus on minimizing debt, with nearly half planning to put their tax refund toward paying down debt. More than one-third anticipate putting some of the money into savings, while one-in-four consumers will put the money toward everyday expenses. Some consumers are still remembering to have fun with the extra money from their returns: About one-in-ten people will dedicate a portion of their return to major purchases or a vacation.
“Over the years we have seen consumers of all ages shift their focus to minimizing their debt and increasing their savings,” said Phil Rist, vice president of strategy for BIGresearch. “People eagerly anticipate their tax refund because they know it is a significant chunk of change that can go towards paying off bills.”
The NRF 2007 Tax Returns Consumer Intentions and Actions Survey, conducted for NRF by BIGresearch, was designed to gauge consumer behavior and shopping trends related to tax returns. The poll of 9,027 consumers was conducted from Feb. 1-8, 2007. The consumer poll has a margin of error of plus or minus 1 percent.
For more information, visit www.nrf.com.
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