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February 27, 2008

Americans Eager to File Tax Returns This Year, According to NRF

Click here for complete survey information.

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

Americans Eager to File Tax Returns This Year, According to NRF

Washington, February 27, 2008 – Fatigued by rising gas prices and sinking home values, millions of Americans are breathing a sigh of relief in anticipation of a refund from Uncle Sam. The National Retail Federation’s 2008 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch, found that 61.2 percent of consumers have already filed their tax returns or will file a return by the end of the month. The survey also found that consumers filed earlier this year than they did last year; nearly one-third (28.5%) of Americans filed by mid-February, compared to 21.6 percent who had filed by that time last year. The remaining will file in March (23.7%) and April (15.2%).

“With high gas prices, a sluggish housing market and low wage growth, consumers are in the middle of the perfect storm,” said NRF President and CEO Tracy Mullin. “Americans who receive a tax refund will be anxiously awaiting those checks to buy necessities, pay down debt, or indulge in something they had been putting off.”

This year, seven out of ten consumers are expecting a refund (69.2%) when they file their 2007 taxes. Of those expecting a refund, 27.0 percent will spend it on everyday expenses, 12.1 percent will treat themselves to a major purchase and 12.1 percent will take a vacation. Consumers will also pay down their debt (46.5% vs. 43.1% in 2007).

When it comes to tax preparation, one-third of consumers (31.5%) will do it themselves using a computer software program. Others will do it by hand (14.7%), use an accountant (23.5%), a tax preparation service (18.7%) or have a spouse, friend or other relative handle it (11.6%).

The convenience of free online tax services will drive nearly half of all American households (49.2%) to the computer to file their taxes. The other half (50.8%) will file the traditional way and mail it in.

“With the economy as soft as it is, some consumers will choose to invest their ‘free money’ in paying down old debt,” said BIGresearch Vice President of Strategy Phil Rist. “Others may decide to hold onto their money for a rainy day or put it toward purchasing everyday necessities.”

About the Survey

The NRF 2008 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 7,977 consumers was conducted from February 2-12, 2008. 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 companies, more than 25 million employees - about one in five American workers - and 2007 sales of $4.5 trillion. As the industry umbrella group, NRF also represents over 100 state, national and international retail associations. www.nrf.com

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