Taxpayers hanging onto savings, retailers survey says

• Reprints

Updated: March 24, 2012 9:00AM

More people intend to stash their tax return money into their savings accounts — 44 percent this year versus 42 percent last year, a National Retail Federation survey shows.

That is the highest percentage in the nine years the survey has been taken, the trade group said.

The survey revealed about four in 10, or 39.4 percent, of survey respondents who expect a tax refund will use some of the money to pay down debt, while 28.7 percent say they will use their “free cash” to pay everyday expenses.

A minority, 12.3 percent, will buy a car, new TV or other major item, and 11.3 percent will pay for a vacation with their refund, according to the survey of 8,716 consumers by BIGinsight for the Retail Federation.

“After a rocky few years, consumers are now more vigilant about how they spend their money and the importance of preparing for future financial stability,” said NRF President and CEO Matthew Shay.

The survey also showed more people are filing their taxes online — 60.7 percent of taxpayers this year, up from 57.6 percent last year.