Consumers Filing Early, Using Tax Refunds to Minimize Debt, According to NRF

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For Immediate Release
Contact: Scott Krugman or
Kathy Grannis
(202) 783-7971
Email: krugmans@nrf.com or grannisk@nrf.com

Consumers Filing Early, Using Tax Refunds to Minimize Debt, According to NRF
--Half of Consumers Plan to File Online--

Washington, DC, February 22, 2007 – Hoping to get a little extra padding in their wallets from Uncle Sam, most consumers are filing their taxes early this year. The National Retail Federation's (NRF) 2007 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch for NRF, found that nearly two-thirds of consumers (62.2%) filed their income taxes this past January and February.  One in five (21.9%) plan to file in March and close to one in six consumers (15.9%) plan to wait until April to file their taxes. According to the survey, 69.6 percent of consumers expect to receive a tax refund this year.

“Many people look at their tax refunds as ‘bonus bucks’,” said NRF President and CEO Tracy Mullin. “Retailers begin to offer special sales and promotions as early as May, knowing that it is hard for consumers to resist spending at least a small portion of their refunds.”

When it comes time to file, one-half (50.1%) of consumers will be logging onto their computers and filing their taxes online.  In addition, one in three (33.9%) will be using computer software to prepare their taxes.

Consumers are continuing to focus on minimizing debt, with nearly half (43.1%) planning to put their tax refund toward paying down debt.  More than one-third (38.6%) anticipate putting some of the money into savings, while one-in-four (26.5%) will put the money toward everyday expenses. Some consumers are still remembering to have fun with the extra money from their returns: about one in ten people will dedicate a portion of their return to major purchases (11.0%) or a vacation (13.3%).*

“Over the years we have seen consumers of all ages shift their focus to minimizing their debt and increasing their savings,” said Phil Rist, Vice President of Strategy for BIGresearch. “People eagerly anticipate their tax refund because they know it is a significant chunk of change that can go towards paying off bills.”

About the Survey
The NRF 2007 Tax Returns Consumer Intentions and Actions Survey, conducted for NRF by BIGresearch, was designed to gauge consumer behavior and shopping trends related to tax returns. The poll of 9,027 consumers was conducted from February 1-8, 2007. The consumer poll has a margin of error of plus or minus 1.0 percent.

BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch's syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2006 sales of $4.7 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.

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*The sum of the % totals is greater than 100% because the respondents can select more than one answer.

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