Here’s how Americans plan to use tax returns

Tax filing season certainly isn’t at the top of most people’s list of fun things to do. But for most taxpayers, there is something to look forward to each spring: a refund.

According to the IRS, the average refund has been close to $3,000 in recent years — which is a pretty hefty hunk of change. In fact, you could do a lot with that much money.

To find out how Americans will spend their windfall, GOBankingRates surveyed more than 5,000 adults across the U.S. We asked, “What do you plan on doing with your tax refund?” Respondents could choose one of eight answers: • I do not receive a tax refund • Make a major purchase (necessity)

• Pay off debt (loans, credit card, etc.) • Put money in savings • Put money toward a vacation

• Splurge on a purchase (luxury) • None • Other Find out how taxpayers who do expect to get money back from the government will spend it and how to put your refund to work for you.

One-third don’t even expect a tax refund

The survey found that 36 percent of respondents said they don’t expect to receive a tax refund this year. This is close to the number that the IRS expects won’t receive a refund, which is about 30 percent.

Not getting a refund isn’t necessarily a bad thing. If you don’t get a refund, it means you had the proper amount of tax withheld from your paycheck during the year rather than too much — which results in a refund. In fact, taxpayers who regularly get a large refund should fill out a Form W-4 to adjust their withholding and hang on to more of each paycheck.

The majority of taxpayers do expect to get a refund this year, the survey found. Our analysis of how they will spend that money focuses only on answers from respondents who expect to get money back from Uncle Sam.

43 percent of Americans plan to put their tax refunds in savings

According to the survey, most taxpayers who expect to receive a refund plan to be responsible with the money, with nearly 43 percent saying they will put the money into savings. That’s encouraging, considering that another GOBankingRates survey found that more than half of Americans have less than $1,000 stashed away.

Another 36 percent said they will use the money to pay off debt. Given that another GOBankingRates survey found that debt is the No. 1 source of financial stress in America, it makes sense that such a large percentage of taxpayers plan to pay off what they owe with their refund.