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Make way for refunds!
Those expecting a tax refund plan to pay down debt, take a vacation or buy that plasma TV.
March 28, 2005: 12:05 PM EST

NEW YORK (CNN/Money) - More than two-thirds of consumers expect to receive a tax refund this year and they are ready to spend it, according to the National Retail Federation.

A survey by the industry group found that only one in seven consumers plans to wait until April to file this year in anticipation of the highly coveted tax refund, which will average $2,259 this year, according to the IRS.

"Tax time provides a monetary and psychological boost to consumers, as there is something exceptional about getting money back from the government," Tracy Mullin, NRF president and CEO said in a statement.

Half of those who expect a tax refund plan to use the funds to pay down debt, the NRF survey found.

Some consumers plan to use part of their refund for everyday expenses, a vacation or a major purchase, according to the survey.

Women are almost twice as likely as men to use some of their refund on a major purchase.

"Many of my clients intentionally wait for their refund and use it as an opportunity to buy that big-ticket item," Dane Dickler, a tax accountant at Starr, Darcy & Starr, told CNN/Money.

For five ways to spend your refund, click here.

For a guide to the 2005 tax season, click here.

And for CNN/Money's complete tax coverage, click here.  Top of page


Internal Revenue Service (IRS)
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