Americans prioritize debt reduction with tax refunds

The federal tax filing deadline is quickly approaching for U.S. taxpayers. Many consumers are buried in paperwork and pressured to file by April 15. In its third year, the ACI Speedpay Tax Trend Report reveals expert insights into consumers’ tax filing and payment habits.

The “refund check” is more of a metaphor for most Americans

This year, high interest rates and persistent inflation influence Americans’ plans to use refund checks, with debt repayment taking priority. Our survey also highlights the urgent need for consumer education on tax scams to prevent identity theft.

Trends we’re watching:

• Almost 40% of the consumers surveyed will use their tax refunds to pay debts, a slight increase over last year
• Digital tax payments continue to rise with alternative payment methods (APM) holding steady
• Traditional check payments continue to decline
• There is a direct correlation between a lack of consumer awareness and an increase in identity theft