Fewer Americans Expect to Obtain Refunds for Taxes this Year

Fewer people expect the tax refund financial boost for the year 2013. In an American Express survey, 59 percent of the 1,500 surveyed adults stated that they expect refund for taxes down from 64 percent of the previous year.

Nineteen percent are expected to owe money coming from tax time at the same period compared to only 13 percent in the year 2012. Nearly 30 percent of the respondents who have household income that is higher than $100, 000 stated that they expect owing the IRS for this year.

Chief economist Will McBride of Tax Foundation said that the increasing number of individuals who owe taxes implies that there is an improvement in the economy. He added that people are earning more which means that they receive less from the IRS. Those who are going to owe money, majority of them stated that they will pay with cash from their savings or checking account. Nearly 15 percent expressed they are going to pay with their credit card from 7 percent of 2012.

The refund checks amounting to $2, 700 that are coveted from the previous years must arrive in handy as the consumers are dealing with the small paycheck after the 2-year payroll tax “holiday” had expired this year. Some residents stated that they will enjoy spending the expected taxes refund on a travel. These people have their different point of views and purposes depending on the amount of taxes refund that they received. It is more of the amount that can be received from the government.