Survey Reveals Half of Millennials Rely on Tax Refunds to Cover Expenses

Tax refunds are crucial for many Americans. A recent study shows that half of millennials rely on these refunds to cover their expenses.

A recent study by Credit Karma found that 37% of taxpayers count on their refund to help them financially, and this number goes up to 50% for millennials. Almost half of the people who rely on their refund said it’s due to the increasing costs of life and basic needs.

For many, tax season can’t come soon enough. One-third of the people asked said they would pay a fee, or intend to pay a fee, to get their tax return early. Almost half of people, 47 percent, plan to use their refund to pay off debt, and this increases to 59 percent for millennials, according to the poll.

The 2025 tax season starts on Monday, January 27, and the federal date is Tuesday, April 15.

The newest IRS data shows that the average federal tax return for 2024 was $3,138.

While getting a big refund check can feel good, it also means you overpaid during the year, essentially giving the government an interest-free loan.

If you usually get a large return, you should check how much money is being taken out of your paycheck. You can change how much money is taken from your paycheck by filling out a new W-4 form with your boss.

The IRS offers a tool to help you determine how much money should be taken out of your paycheck for federal taxes.

Last year, the government gave back almost 105 million returns, amounting to about $330 billion.

Tax season makes some people feel stressed.

Some people are not as eager about tax season and will go to great steps to avoid filing.

A study by Credit Karma found that about 18 percent of millennials would prefer to drive for 20 hours non-stop. About 15 percent said they would promise not to date for a year to avoid paying their taxes.

“Whether you expect to get a refund or think you might owe money this year, my top advice is to make a plan. Use the many online resources and tools available to help you estimate what you may owe or receive. There are also ways to get your refund early without any fees,” said Courtney Alev, a financial expert at Credit Karma.

Credit Karma did an online survey with Qualtrics from December 20, 2024, to January 4, 2025. It included 1,000 adults who plan to file their taxes this year.