More may spend tax refunds this year, experts say

Americans flood tax offices during tax season, which lasts from the beginning of April through the beginning of May.

"This is the busiest time of the year," Roger Hooten of Jackson Hewitt tax service said.

Because of the economic recession, Americans have been more interested in saving their tax refunds during the past few years. However, surveys have indicated this year will be different. Most tax refunds will be spent on nondurable goods such as vacations, clothes and restaurant spending.

"2010 Tax Returns Consumer Intentions and Actions Survey reveals that saving and paying down debt are still very important to consumers, but many Americans plan to cautiously start spending their tax refunds once again," the National Retail Federation (NRF) stated.

Tax season is exciting for some, but depressing for others, as some pay taxes without receiving a refund.

"Americans get excited about the government giving us back our money with no interest," professor and Department Head of Accounting, Economics and Finance Steven S. Shwiff said. "I find that odd, because it is like the government is forcing us to save."

Shwiff is concerned that Americans do not have enough discipline to save their money throughout the year. Some do not realize that if they put money into a savings account, it will gain interest.

"Most people do not know if they will receive a refund the following year, so they blow it or have a windfall," Shwiff said.

According to the survey, "12.5 percent of people expecting a refund plan to treat themselves or their families to a major purchase such as a new television, furniture or car, up from 11.0 percent last year. Others will stash their refund away in savings (40.3 percent), put it toward everyday expenses (28.8 percent) or go on vacation (10.0 percent)."

Shwiff suggests not overbuying with this year's tax refund, and advises people to buy durable goods, such as washers and dryers, to benefit the economy.