Americans Plan to Spend Their Tax Refunds on This

NEW YORK (MainStreet) — Taffy Vanderpool is looking forward to receiving her tax refund so that she can take a much needed vacation from her job as a court reporter. Although she has $3,000 in credit card debt that is begging to be repaid, the 29-year-old feels a change of pace is more important.

"I need a break and I'm only getting $1,000 this year so it's going towards my mental health," Vanderpool told MainStreet.

If she happens to receive more than $1,000, Vanderpool says she will reluctantly set some money aside for debt repayment.

"I look forward to my tax refund all year so that I can splurge not pay off debt," said Vanderpool.

A Taxsoftware.com survey found that 11% of Americans are earmarking their tax refunds for a vacation this year compared to 10% two years ago.

"Our survey results are consistent with similar polls we've conducted in recent years and continue to demonstrate that Americans place a high priority on using their refunds to help improve their personal lives," said Mickey Macedo, spokesperson with Taxsoftware.com, which launched the first iPad app for federal tax returns in 2011.

The study further found that 32% of Americans plan to use their anticipated federal and state tax refunds to help pay off debts compared to 29% last year in 2012.

"For millions of taxpayers, improving their own financial situation is a top priority," Macedo said. "This is a powerful indication of consumer caution and conservatism in the face of a recovering economy."

About 27% of taxpayers will earmark their refunds for savings or investments, 11% for purchases, 9% for home improvements and 5% equally for paying mortgages and student loans.

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