Personal Finance

46% of Young Americans Plan to Save Their Tax Refund

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In an effort to save refunds, young adults are more likely to file taxes early than older people, according to a recent survey from Manilla, an account management service. It’s common to hear gripes about filing taxes around this time of year, but the survey shows that this may not be the case across the board.

Sixty-two percent of survey respondents age 18 to 23 said they file taxes in January or February, while just 39 percent of older respondents file them that early. And while only 25 percent of older respondents said they would save their refund this year, 46 percent of respondents age 18 to 23 said they would put theirs away for future use.

As far as refunds go, the survey found that overall, 23 percent would save it, 42 would use it to pay off bills or credit cards, 11 percent would put it toward an expensive item like a car or couch or vacation, and 24 percent don’t expect a refund.

What would you do?

The Manilla survey went so far as to ask what people would be willing to give up if it meant they didn’t have to go through the hassle of filing taxes. It turns out that most people would actually rather file them, as just 3 percent would give up their cellphones. Sixty-one percent would rather do their taxes than give up their phones, romance or favorite food.

Male respondents were most likely willing to give up alcohol in exchange for not having to do taxes, and women were most likely to be willing to give up their favorite food, according to the survey.

The results also showed that twice as many women would use their refund for a big-ticket item, such as a vacation, than men, 14 percent versus 7 percent, respectively.

Tread Lightly

Whether or not you’ve already filed, be careful with the tax sites you visit and the information you give out, as tax season is rife with opportunity for hackers to get their hands on sensitive information. The IRS and numerous other web security experts are sending out warnings to Americans to make sure that every site they visit is authentic to protect from identity theft.

“Users who have already filed their taxes this season can still be vulnerable to tax-related scams,” warned Help Net Security. “Many schemes take advantage of users by alleging to have information about the filer’s refund, or noting a problem with the return that was previously filed.”

Image: Hemera

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