The Most Stressful Time of the Year
Tax season used to come with a certain promise: a refund would provide a little breathing room. But according to new research from Credit Karma and Turbo Tax, this year, for many Americans, that refund isn’t a bonus—it’s a lifeline.
The report showed that almost 70% of Americans expect to receive a tax refund this year. And for the majority of them, that money already has a job waiting. The numbers paint a clear picture of how tight many household budgets have become. More than half of Americans who rely on their refund say rising costs for essentials like housing and groceries are the main reason. Another 35% say they’re living paycheck to paycheck, while 21% say they need their refund to pay down high-interest debt.
Lisa Greene Lewis, CPA and tax expert for Intuit TurboTax, advised that with filers “expecting to see a $1,000 increase in refund this year,” to file soon. “For millions of Americans, their tax refund is not only the largest check they get all year, but it’s also a financial lifeline.”
Notably, unexpected expenses are also a factor. Seventeen percent say they had an emergency cost, 17% say they depleted their savings, and 14% say they maxed out their credit cards.
Still, others are using the moment as a financial reset. Among people expecting a refund, 44% plan to save at least part of it, 41% will use it for necessities, and 35% plan to pay down debt. For savers, the motivation is often protection against the unknown. Nearly 39% say they’re building a cushion for unexpected expenses, while 28% cite concerns about the economy.
The Takeaway: In today’s economic climate, tax season has taken on a new meaning. For many households, it’s less about a splurge and more about stability—a chance to catch up, cover essentials, or build a small financial cushion.
