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About 60% of middle-income families expect a tax refund this year, according to a new survey. But how will they spend that windfall?
Recently, financial services firm Primerica asked middle-income families in the U.S. about their finances. During the process, Primerica learned how the nearly 1,500 adults surveyed expect to spend their tax refund.
For the purpose of the survey, the firm defined middle-income households as those with annual household incomes of $30,000 to $100,000.
Following are this group’s most common answers regarding their intended uses for their federal income tax refunds.
Many expect smaller refunds
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In the survey, the largest share of respondents — 36% — said they expect smaller refunds this year than they have received in the past.
That should not be a big surprise. Even the IRS has warned that refunds are likely to shrink a bit this year.
Some factors that are reducing refunds include the fact that pandemic tax breaks are now over, and fewer people are qualifying for the earned income tax credit.
For more, see “5 Reasons Your Tax Refund Might Be Smaller This Year.”
Additionally, 33% of respondents in the survey expect a refund similar to what they got last year, and 24% anticipate a larger refund this year than in…
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