Texas Border Business
Texas Border Business
A survey conducted this month by Bank of America Global Research found that 36% of Americans plan to use their 2026 tax refunds to pay down debt, as refunds are projected to increase significantly. According to reporting by CBS News, Wall Street analysts estimate the average refund could be about 30% higher than last year, or roughly $1,000 more, bringing the typical refund to about $4,000. Internal Revenue Service data cited by CBS News shows refunds are currently about 14% higher than at the same point last year. Refund amounts typically rise as the filing season progresses because higher-income households, which often receive larger refunds, tend to file closer to the April 15 deadline, according to CBS News.
The Bank of America survey found that paying down debt is the most common planned use of refunds. About 10% of respondents said they would use the money for a major purchase or to cover everyday expenses, while roughly 13% plan to put it into savings. The survey also found that 32% of respondents do not expect to receive a refund.
According to CBS News, household debt in the United States has reached record levels in recent months, with Americans relying more heavily on credit cards for daily spending and taking out larger loans as car and home prices have risen. Matt Schulz, chief consumer finance analyst at LendingTree, told CBS News that this year’s plans mirror past patterns. During the 2025 tax season, about 34% of consumers told LendingTree they intended to use their refunds to reduce debt, he said. “Going all the way back to the pandemic, when so many Americans used their government stimulus to pay down their debts, we’ve seen that people tend to do the right thing when they get a windfall,” Schulz told CBS News.
A Feb. 11 report from the Bank of America Institute found that from 2023 to 2025, low- and middle-income households tended to keep a portion of their refund money in their bank accounts for at least six months. According to CBS News, analysts say the larger refunds projected for 2026 could strengthen financial stability for many households, even as a significant share of taxpayers expect no refund.
