With the national savings rate hovering at just below one percent, tax time presents a unique opportunity for Americans to jumpstart their savings. This month alone an estimated $140 billion in refunds will reach about 45 million people’s pockets. However, according to the American Tax & Financial Center at TurboTax, only 25 percent of taxpayers plan to put at least a portion of their tax refund toward savings.
An estimated 40 percent of working households do not have enough money saved to meet the majority of their expenses for a single month. And many families are only one unexpected car repair, illness or job loss away from exhausting any savings they may have. In fact, approximately 39 percent of people feel that having a savings to deal with unexpected expenses or emergencies is one of their most important financial goals, according to Intuit TurboTax, the nation’s leading tax preparation software from Intuit Inc. (Nasdaq: INTU).
“Setting aside a small amount of money allows people to manage unexpected events, opens up opportunities for education and helps families build future financial security,” said Bernie McKay, executive director of the American Tax & Financial Center at TurboTax. “We recommend that families put at least 30 percent of their tax refund into savings.”
With the average tax refund almost $3,000, according to the IRS, lower-income households have the opportunity to almost double the $1,500 or less that is typically in their checking and savings accounts.
According to research from Intuit TurboTax, 55 percent of Americans are concerned that they won’t have enough money to retire. Tax refunds present these individuals with an opportunity to help meet their financial goals.
A simple option for taxpayers is to use a portion of their tax refund to buy U.S. Savings Bonds.
A U.S. Savings Bond is one of the safest investments available to Americans and has many tax advantages.
Sold in denominations of as little as $50, Series I bonds, available for purchase through TurboTax, are accessible to every taxpayer who receives at least a $50 federal tax refund. Taxpayers can use a portion of their tax refund to buy bonds and have the remainder deposited into a bank account or pre-paid debit card.
Visit the American Tax & Financial Center at TurboTax for a full report and additional information.
About The American Tax & Financial Center at TurboTax
Established in November 2012, The American Tax & Financial Center at TurboTax provides objective and independent data and insights on tax and personal finance trends. The Tax Center is now available to provide taxpayers, policymakers and media with resources and expert commentary on the impact of taxes on U.S. consumers.
The center’s primary goal is to help Americans in understanding financial matters so they can make informed financial decisions. The center educates and advocates for individuals by helping them take ownership of their financial future. For more information, visit The American Tax & Financial Center at TurboTax at www.americantaxandfinancialcenter.com.
TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helped more than 25 million people last year keep more of their hard-earned money. For more information, visit the TurboTax press room, like us on Facebook at www.facebook.com/turbotax, follow us on Twitter at twitter.com/turbotax, or visit our blog, Tax Break: The TurboTax Blog, at blog.turbotax.intuit.com/.
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