The average tax refund is over $1,700—how Americans plan to spend it

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The 2024 tax season is in full swing, with some Americans already seeing refund checks hit their mailboxes or bank accounts directly. As of mid-February, over 25.5 million taxpayers had submitted returns, with the average refund coming to $1,741, according to the Internal Revenue Service. In total, 67% of taxpayers say they expect a refund this year, a recent Bankrate survey found. So what do Americans plan to do with that money? Nearly 30% of taxpayers receiving refunds plan to put theirs into savings, Bankrate found. Here are the other ways taxpayers plan to use their refunds: Saving and paying down debt are the top responses across generations, except for Gen Z, which plans to prioritize investing over paying down debt, Bankrate found. And about 20% of taxpayers plan to use the cash for fun expenses like vacations, home improvements and retail splurges. There's some debate around whether it's actually a good thing to receive a tax refund versus adjusting your withholdings and receiving larger paychecks throughout the year. But as long as your taxes get paid, it's up to you which strategy works best for your situation. Similarly, if you do receive a tax refund, it's up to you to decide the best way to use it, from covering day-to-day expenses to saving for a future goal. The best way to use your tax refund