About two-thirds (64%) of American taxpayers received a tax refund in 2024, according to IRS data reported by Bankrate.
How much did they get, on average? And what did they typically spend it on?
The answer to the former can vary significantly depending on where the taxpayer lives.
The average refund for tax year 2022 — the latest available full-year data — was $4,381, per a new report from LendingTree. However, for the third year in a row, Wyoming residents saw the largest average refunds at $6,367, the data revealed.
Taxpayers in Florida and the District of Columbia received the next-highest refunds at $5,934 and $5,848, respectively, according to the report. Additionally, Florida residents enjoyed the most significant percentage gain year over year at 18.6%.
West Virginia residents were left with the lowest average tax refunds at $3,183, followed by those in Maine ($3,199) and New Mexico ($3,394), per LendingTree.
Two-thirds (66%) of Americans plan to put their refunded money to practical use: 34% intend to pay off debt, while 32% want to place it in a general savings account, the report found.
Another 16% of tax refund recipients were unsure what they would do with the money, 14% planned to use it for a vacation, 14% intended to save it for a large purchase like a house or car, and 11% had allocated it to support family members, per the data.
Fewer respondents had plans to stash their refunds in a retirement account (10%) or invest them in the stock market (9%).
Related: Tax Deductions List: 77 Items to Consider Writing Off
“There’s nothing wrong with taking a piece of the return and having some fun with it,” LendingTree’s chief consumer finance analyst Matt Schulz says, “but if you have high-interest debt and you’re working toward big long-term financial goals, the vast majority of the refund should go toward those things.”
