The Reality of What Americans Will Spend Their Tax Refunds On

According to a new poll by Talker Research, the average American is planning to get roughly $1,700 back in tax refunds this year.

While in the past, Americans were able to be more frivolous with their tax refunds, in 2025, that’s looking less likely.

The sad reality is that most middle class Americans are struggling to stay afloat and stay caught up on bills, so this year, they’ll be spending their tax refund on that: Bare necessities.

Seventy-seven percent of Americans know they’ll spend the “extra” funds on their rent, grocery shopping and paying off credit card debt.

According to Time in 2015, a study by Georgetown Institute for Consumer Research found that Americans planned to spend 33 percent of their refund checks servicing debt, 33 percent investing or saving, and 33 percent on fun purchases.

As you can see, in a matter of ten years, average Americans have been forced to change their spending habits. That likely has a lot to do with inflation — a problem we’ve been dealing with since the pandemic that is not showing any signs of letting up.

Research shows that only 8 percent of people in 2025 will be living life like it was 2015 again and buying so-called luxury items.

Instead of buying a new jacket or a new pair of shoes for ourselves or kiddos, the majority of Americans are going to need to spend that refund right away on groceries and gas and credit card bills.

Womp. What happened to the good ol’ days?