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Most Americans Expecting a Tax Refund; Many Plan to Spend It

McLean-based Capital One Bank's survey revealed 20 percent of people plan to save or invest any refund they get.

About 85 percent of Americans expect to get a tax refund and 35 percent plan to spend all or part of it, McLean-based Capital One Bank’s 2013 Taxes and Savings Survey revealed.

Still, 19 percent are worried that they’re going to owe taxes and 18 percent are worried their tax refund won’t be enough to do what they need to do.

With the sequester, many in Northern Virginia may be planning to use their refund for everyday living expenses or to close the gap from salary reductions—that local factor may not be reflected in Capital One Bank’s national survey, which was conducted before the sequester started.

The IRS has delayed any furloughs until after the main tax season, so the processing of your tax payment or refund should not be delayed, Politico reported earlier this month. 

  • See: Sequestration in McLean: Businesses Feel Some Effects

Capital One Bank surveyed more than 1,000 households across the United States by phone in mid-February.

More from the Capital One Bank survey:

  • 22 percent of survey respondents plan to use their refund to pay down debt.
  • 16 percent may save their refund.
  • 4 percent plan to invest their refund.

Of those who are going to spend their refund:

  • 30 percent will spend it on everyday necessities.
  • 23 percent will be going on vacation.
  • 15 percent will be splurging on electronics.

Unfortunately, some of those tax refunds are going to be delayed. The Internal Revenue Service released a statement saying a problem with some software company products affected some taxpayers who claimed educational credits in mid-February, the Associated Press reported. People who filed between Feb. 14 and 22 and claimed that credit may have to wait an additional 6 weeks for their refunds.

Looking for Tax Help?

If you still haven't filed your taxes, here are a few places you can get assistance in the area:

Fairfax County offers free income tax preparation to families who made less than $51,000 in 2012. More information, including locations, is available here.

Also see this list of accountants and tax professionals registered with the Tysons Regional Chamber of Commerce.

The Northern Virginia IRS Tax Assistance Center is open in Bailey's Crossroads.

Tax Advice from the IRS

The IRS is a McLean Patch Local Voices contributor and is offering our readers free tax tips. See the first IRS post here about how military personnel can get free tax help.

Learn more about how you can post to McLean Patch through Local Voices here. Joining is free!

What are you doing with your tax refund, McLean? Tell us in the comments. 

Beth Lawton (Editor) March 14, 2013 at 03:30 PM
I'm one of the 19 percent worried that I will owe taxes this year. If we're lucky enough to get a refund, we'll probably be saving it in case my husband (who works for the federal government) is furloughed later this year. What about you? Any vacation or spending plans for your refund?

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