To spend or to save, that is the question. My wife and I have almost always tucked away our income tax returns to serve as an emergency fund. There have been a few times we have used it to pay down bills, but usually it is added to our rainy day savings account.
We know people that do the same as us, and others that treat a return like a windfall. They adjust their tax withholding situation so that Uncle Sam keeps as much of their money as possible during the year (interest free) to assure a lottery like tax return.
I’m curious as to what you will do with your tax refund if you receive one this year. Has The Great Recession changed your plans? Are you going to pay down bills, stash it away or treat yourself to something you have been wanting?