For most Americans, tax refunds offer a financial lifeline this year
In a time of rising costs and economic uncertainty, tax refunds have become a lifeline for many Americans. While many aim to save their refund or pay down debt, a majority rely on refunds for essential expenses, and they want that money in their pocket as soon as possible.
According to a new study conducted by Qualtrics on behalf of Intuit TurboTax of 1,010 U.S. adults ages 18 and older, a majority of Americans (69%) say they expect to receive a tax refund this year. Most of those respondents (70%) say they use their refund to cover basic living expenses, like paying rent and paying bills. 91% of Americans say it’s important to get their tax refund as quickly as possible. And, a quarter of Americans (25%) do not expect their refund to go as far as tax refunds in past years have.
As such, there is a rising demand for smarter tools and clearer guidance that help people make strategic decisions around what to do with their refund. Intuit Credit Karma examines more findings from the survey.
Rising Costs Drive Refund Dependence
“Refund season” has effectively become “relief season” as Americans count on their refund to make ends meet.
More than half of respondents (51%) say they rely on their refund because of the rising cost of living, including housing and groceries. Another 35% report living paycheck to paycheck, while 21% say they need their refund to pay down high-interest debt.
When asked, “Which of the following reasons, if any, explain why you rely on your refund to make ends meet? Select all that apply.” Here is how Americans answered:
And the urgency is clear: 91% of those expecting a refund say getting it as quickly as possible is important.
At the same time, financial fragility remains widespread. Nearly 1 in 4 Americans (24%) worry they won’t be able to afford their tax bill this year, and 20% believe they may need to take on debt to pay what they owe. And, only half (49%) think their refund will stretch as far as it has in previous years, when in reality, the majority of filers will get a tax refund, and filers are expected to see up to a $1,000 increase in their refund this year.
Refunds Offer a Financial Reset for Some
While many Americans plan to use their refund for necessary expenses, others see it as a rare opportunity to strengthen their financial footing.
Among those expecting a refund:
- 44% plan to put at least a portion into savings.
- 41% will spend it on necessities.
- 35% intend to pay down debt.
For those planning to save, their motivations reflect economic uncertainty: Over one-third (39%) say they want to prepare for unexpected expenses like car repairs or medical bills, and over one-quarter (28%) say they are worried about the state of the economy.
This year, the data suggests tax refunds are serving a dual purpose: plugging short-term budget gaps while offering some a chance to build their financial foundation.
The Gig Economy’s Tax Surprise
For Americans earning income through side hustles, tax season can bring some sticker shock. Among respondents who do gig work, 36% say they were surprised in past years by how much they owed in taxes due to side income, and half (50%) say that an unexpected bill made them reconsider having a side hustle at all. For those side giggers who didn’t have the tax outcome they expected, it’s important that you claim every eligible deduction directly related to your business: expenses like supplies, mileage, travel, the home office deduction, and any other deductions specific to your business.
Growing Demand for Guidance
Sometimes, the smartest financial move for your tax refund isn’t the obvious one. More than half (52%) of those who expect a refund this year say they wish they had help determining the smartest financial move for their refund. Notably, 30% say they plan to use AI tools to help think through how to spend or save that money.
Filing itself is largely digital, with over half (52%) planning to file using online tax software, though 22% still plan to file with a certified accountant or financial advisor, and 18% plan to file with an in-person tax service.
Security Remains Top of Mind
Beyond financial concerns, data protection weighs heavily on taxpayers. Most Americans (71%) say they think about whether their personal information is adequately protected before filing. And, over one-third (67%) say real-time alerts about potential refund or identity issues would make them feel more secure.
A Changing Meaning of Tax Season
The data paints a clear picture: In today’s economic environment, tax refunds have become a cornerstone of Americans’ financial picture.
For many Americans, refund season is less about splurging and more about stability: a chance to catch up, stay afloat, or get ahead, even temporarily.
“For millions of Americans, their tax refund is not only the largest check they get all year, but it’s also a financial lifeline,” said Lisa Greene Lewis, CPA and tax expert for Intuit TurboTax.
“TurboTax’s data shows that the majority of Americans who expect a refund are using it to cover necessary expenses like rent, groceries, and bills, underscoring just how stretched household budgets remain. At the same time, many taxpayers are looking for smarter ways to use that money, whether that’s building emergency savings, paying down debt, or navigating economic uncertainty. With filers expecting to see a $1,000 increase in refund this year, now is a good time to file your taxes if you haven’t yet,” Green Lewis explained.
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit TurboTax from Feb. 5, 2026, to Feb. 9, 2026, among 1,010 adults ages 18 and older.
This story was produced by Intuit Credit Karma and reviewed and distributed by Stacker.
