HONOLULU (KHON2) — Tax season is upon us, and most of us will end up paying something to either or both the United States government or the State of Hawaiʻi.

But for many others, tax season brings excitement and how they will spend their tax refunds is a big part of that.

In 2024, the Internal Revenue Service issued $553 billion in refunds, and the average refund was $3,138.

For those receiving a refund, it’s an exciting time that can help them cover expenses or treats that cannot be covered by their annual net income.

A couple of recent surveys found that 1)79% of Americans are expecting a tax refund and 2) most of them have already mapped out how they’re use it.

One of the most important findings showed that 46% of Millennials said that their impending tax returns are essential to their budgetary planning for 2025.

According to the surveys. people tend to prioritize essential expenses when they get their refunds; and the surveys showed that most are spending their refunds across multiple expenses. That includes 52% of people planning to use it for rent, 44% for groceries and 37% to pay down credit card debt.

This is especially common for people who racked up debt over the holidays. However, there’s also a group of people, of course, who plan to spend their refund on fun things that will add excitement to their otherwise dreary lives.

Those who are expected to splurge on luxury items are men; meanwhile, women are more likely to use their refunds for expenses and budgeting needs.

The other survey found that some people, particularly those aged 40 to 55, are thinking about spending their refund on cosmetic procedures like tattoos or weight loss drugs to improve their appearance.

Financial experts recommend that people use part of their refund for fun but also put some toward future goals like retirement or savings for college.

Here’s a list of things people are most likely to buy with their tax refund based on the survey:

1. Rent.
2. Groceries.
3. Credit card debt.
4. Travel.
5. Electronics.
6. Clothing.
7. Weight loss drugs.
8. Tattoos.
9. New appliances.
10. Entertainment.

One more thing that stands out from these surveys is that most people (43%) want their refund as soon as possible so they can pay bills. Millennials, in particular, depend on their refund to help with budgeting.

Tax refunds are a key part of how many Americans manage their finances. While some use the money for budgetary necessities, others spend it on things like travel, tattoos and electronics.

You can click here to read more.

Regardless of what people choose to buy, financial experts suggest that it’s wise to balance spending on fun items with saving for important future goals.