A month into the 2014 tax filing season, the IRS said the average tax refund is up 3 percent to $3,034.
This article also reports that more taxpayers are completing their own returns as opposed to using the services provided by tax professionals and filing their returns earlier this year when compared to 2013. Already, the IRS has received nearly 40 percent of expected total returns during the first month of the filing season.
Finally, recent surveys indicate most Americans plan to use their tax refund to pay down debt, for shopping, or for entertainment.
For additional information, go to http://www.usatoday.com/story/money/personalfinance/2014/03/06/irs-tax-refunds-returns/6125597/
1. Assume you just received a $3,000 tax refund. How would you use the money?
2. If you received a $3,000 refund this year, what effect would it have on your tax planning for next year?
You may want to use the information in this blog post and the original article to discuss
- If students should use a tax refund to pay down debt, start an investment program, or spend the refund.
- Time Value of Money examples to show how a refund that is saved or invested can increase in value.