Tax return plans

According to a new CareerBuilder survey, more than half (56%) of workers report they will use their tax return to pay off bills that have accumulated. The CareerBuilder survey was conducted among more than 5,200 workers between November 5 and November 23, 2009.

"Workers’ wallets are still feeling the ripple effects of the past year," Rosemary Haefner, vice president of human resources for CareerBuilder, said in a statement. "In addition to scaling back their investments and cutting back on expenses, workers are using their tax returns to help supplement their incomes. Our survey indicates that more workers plan to spend their refunds on everyday expenses than on savings or other items."

SURVEY FINDINGS
Nearly eight-in-ten (78%) said they currently live paycheck to paycheck, up from 61% who said the same in May 2009.

Nearly one-in-five (17%) report they reduced their 401 (k) contributions in the last year.

Of those receiving returns, following are the ways the money will be spent:
• Put into savings – 34%;
• Make home improvements – 12%;
• Go on vacation – 11%;
• Pay back money I owe to people – 8%;
• Invest it – 7%; and,
• Buy a car – 2%.