With the tax day approaching, three out of every four Americans anticipate filing their taxes properly this year, and the majority of those who do expect a refund from the federal government. Despite this, nearly half of Americans believe they pay too much in taxes. Others who predict to owe money this year are especially likely to believe they pay too much, with 60% believing they do.
Republicans And Conservatives Feel That They Spend More On Taxes
Politics, on the other hand, has a greater impact on how individuals feel about the sum of money they pay every month for tax, reports CBS News.
Democrats and liberals generally believe they spend about the right amount in taxes, but Republicans and conservatives believe they spend more than they should. Moderates and independents are more divided.
While a quarter of Americans anticipate paying more in taxes this year, the majority — six out of ten — expect to receive money from the government.
Those receiving a refund, on the other hand, are unlikely to spend it on something exceptional or enjoyable, and less than a third will use it to either grow their assets or pursue investment options. Instead, more than half of those who will receive a refund would use it to meet basic needs: 37% will use this to pay off loans or pay off expenses, and another 18% would use it to purchase basic needs such as food or clothing.
Some Individual’s Tax Refund Money Usage Is Influenced By Their Income
The way some people use their tax refund is influenced by their income. Those at the bottom of the income spectrum are significantly less likely to be ready to save or invest their money, with only a quarter of those earning less than $50,000 a year doing so. Americans with annual incomes of $50,000 to $100,000 are more likely to successfully save or invest their returns, but even more — four out of ten — will use it to pay their bills or liabilities. Americans making more than $100,000 every year are by far the most likely to be allowed to save it and invest their refund, with just over a quarter having to spend their refund to pay expenses or obligations. Almost no one in America, irrespective of income, will spend their tax refund on anything special or enjoyable.