Tax Refunds Are a Critical Financial Boost for Most Americans, TaxSlayer Finds
AUGUSTA, Ga., Jan. 28, 2025 /PRNewswire/ -- A new survey of 2,000 U.S. taxpayers, commissioned by TaxSlayer and conducted by Talker Research, illustrates the mixed emotions and financial realities surrounding this tax season. Notably, 79% of those surveyed believe they'll be getting a refund this year, and one-third say they plan out how they'll spend their tax refund roughly six months in advance.
According to the data, most Americans rely on their tax refunds to cover necessities, with only 8% planning to spend on luxuries like new clothes, entertainment, or phones. Instead, most prioritize essential expenses such as rent, groceries, and credit card debt—particularly holiday-related balances, which over half of respondents aim to pay down.
"Tax refunds are a financial lifeline for many Americans, so it's our mission to empower them to file their taxes with confidence," said TaxSlayer's Head of Consumer Product, Seth Babb. "Knowing that their tax return is backed by TaxSlayer's 100% accuracy and maximum refund guarantees gives our customers the assurance that they're getting back every dollar they deserve."
Common factors that significantly impact a person's refund amount from one year to the next include new tax laws, a change in employment or marital status, starting a family, or adjusting withholdings.
When asked if they expect to see an increase or decrease in their refund in 2025, one-fifth (22%) of the study's participants said they believe they'll end up with more money this year than last. Many in this group said they had withheld more money on their W-2, earned more money in the past year, or added a dependent. The 26% who expect a smaller refund believe it could be due to the loss of a job, owing back taxes, children aging into adulthood, and increased tax rates.
The study found that the average American is hoping to receive roughly $1,700 in tax refund money this year, with half (51%) of the participants saying they expect to receive about the same amount as last year.
It's worth noting that the past several tax seasons have been marked by major tax law changes, and taxpayers likely saw that reflected in their tax refunds in some way. This year, though, Americans won't need to brace for significant changes to the tax code.
"After many consecutive tax seasons defined by law changes, our focus this year has been on delivering on our core mission," says TaxSlayer's Chief Marketing Officer, Sean McGinty. "TaxSlayer is committed to being a value leader in tax software, meaning that our products are reliable and accessible for the average person, and at a price point that's significantly less than our competitors'. Anyone, no matter their tax situation, can file a federal tax return with TaxSlayer Classic for $22.95 and still get their maximum refund, guaranteed. That's something we're really proud of."
About TaxSlayer
TaxSlayer is an easy-to-use online tax filing platform with unlimited support at a fraction of the cost of the competition. Trusted for 60 years, the Augusta-based tech company successfully completed more than 11 million federal and state e-filed tax returns in 2024 and processed over $22 billion in refunds. With over 27,000 reviews on consumer review site Trustpilot, 83% of customers rate TaxSlayer Great or Excellent. On top of ensuring 100% accuracy, TaxSlayer has a maximum refund guarantee and is committed to providing the right tools at the right price. For more information, visit www.taxslayer.com. Or find us on Facebook, LinkedIn, Instagram, and X.
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SOURCE TaxSlayer