Report: Fewer people expecting tax refund
Mar 26, 2013, 5:00 AM | Updated: 6:18 am
The U.S. economy may be well on its way down the road of recovery in 2013.
CNN Money reported that based on an American Express survey, less people are expecting a refund check from the IRS this year, meaning they will actually owe the IRS.
Almost 1,500 adults participated in the American Express survey, and only 59 percent said they were expecting a refund check in 2013. That number represents a 64 percent decrease from 2012.
Tax Foundation chief economist Will McBride explained that more people owing the IRS is actually a good thing.
“They are earning more and that means they get less from the IRS,” McBride told CNN.
According to American Express spokeswoman Melanie Banks, while the economy is making its way out of a recession, it’s still a hot topic on the minds of many consumers.
“While people are feeling more confident, they learned some valuable lessons,” Banks said.
Kelly Bendetti, a new Pennsylvania homeowner, explained to CNN that while she would love to spend her refund, which is expected to be less than $1,000, on a vacation, she will instead put it toward her student loans.
Bendetti added that moving forward she plans to pay the exact amount of taxes she owes during the course of the year, in an effort to prevent having to give “an interest-free loan to the government.”
“I just don’t understand how people want these huge giant refunds,” she said. “It means they’ve overpaid all year.”
