Americans Count on Tax Refunds As Costs of Living Remain High | Global News Avenue

As inflation makes the cost of living harder, more than half of Americans see tax refunds this year as essential rather than rewards.

According to the IRS, the average refund amount was $3,324 as of March 7. 5.7% higher than the same period last year, forecasts show taxpayers may receive this year The highest refund in recent years. However, for many families, this may not be a reward.

More and more taxpayers are hoping to use refunds for essential goods this year as the cost of living continues to increase, inflation remains high, and The Fed is hesitating Lower interest rates.

According to a survey by review platform Trustpilot, 47% of Americans believe inflation and the cost of living are their biggest financial concerns, and their refunds will affect the key points of whether they can’t afford it. This is 12 percentage points higher than the previous year.

Additionally, more and more taxpayers are delaying filing tax returns for 2024 due to concerns about government funding, at 28% in 2025 and 12% in 2024.

Young taxpayers are more likely to rely on refunds to get essentials. Half of taxpayers aged 18-34 plan to use their refunds for essentials, compared to 35% for taxpayers aged 35-54 and 20% for taxpayers aged 55 and over. Additionally, 40% of young taxpayers say they will struggle if they don’t refund, while taxpayers 55 and older will struggle.