As tax season unfolds, many Americans — particularly those approaching or already in retirement — are taking a close look at what their federal returns say about their financial situation. New data from CivicScience suggests that while financial stability remains the top priority, attitudes toward tax refunds are gradually shifting. Compared with recent years marked by heightened caution, taxpayers in 2026 appear more willing to strike a balance between saving and spending.
According to the CivicScience findings, 60% of tax filers expect to receive a refund this year, up slightly from 58% in 2025. While the change may seem modest, it reflects a continuation of a steady trend since 2023, when expectations hovered around 57%. The proportion of filers who anticipate owing money has correspondingly declined, from 43% in 2023 to 40% in 2026.
For older Americans — many of whom live on fixed incomes or carefully planned retirement savings — receiving a refund can provide both reassurance and flexibility. The data suggests that reassurance is still the dominant theme, but flexibility is becoming increasingly important.
Saving Still Leads, but Spending Gains Ground
Among those who expect to receive a refund, financial stability remains the primary focus. More than a third of respondents (35%) say they plan to save or invest their refund, making it the most common choice. Another 26% plan to use the money to pay off debt, underscoring the continued importance of reducing financial obligations amid lingering economic uncertainty.
However, CivicScience data also shows a clear movement toward discretionary spending. Compared with previous years, more respondents are planning to direct their refunds toward quality-of-life expenses — particularly home improvement, travel, and shopping.
In 2026, 10% of refund recipients plan to spend the money on home improvement, while 9% intend to travel, and 8% expect to use it for shopping. Of these categories, shopping shows the most notable increase, rising by four percentage points compared with 2025. This growth suggests a renewed willingness to spend on everyday or personal items after years of restraint.
For those aged 50 and older, these categories may resonate strongly. Home improvement projects often reflect a desire to age comfortably in place, while travel spending can signal a return to postponed plans — visiting family, exploring long-delayed destinations, or simply enjoying leisure time. The uptick in shopping, meanwhile, may point to greater confidence in covering essentials while allowing room for personal enjoyment.
A More Even “Save vs. Spend” Mindset
Perhaps the most telling shift in the CivicScience data is not tied to a single spending category, but to how taxpayers view their refunds overall. In 2026, 40% of taxpayers say they plan to save most or all of their refund, while 36% plan to spend most or all of it.
That four-point gap represents a much narrower divide than in earlier years. In 2022, for example, 46% of taxpayers identified as dedicated savers, compared with 37% who planned to primarily spend their refund. The decline in the “hard saver” category — down six percentage points — suggests that the intense financial caution seen earlier in the decade has begun to ease.
Importantly, this does not mean taxpayers are abandoning responsible habits. Rather, the data indicates a more balanced approach. While the intention to spend has remained relatively stable, fewer people feel the need to put nearly all refund dollars into savings. Instead, more consumers appear comfortable moving a portion of those funds back into circulation — whether through home projects, travel plans, or modest purchases.
What This Means for Older Americans
For Americans over 50, this evolving mindset may reflect growing confidence in financial planning. Many in this age group have already weathered significant economic disruptions (2008 comes to mind) and adjusted their habits accordingly. The CivicScience findings suggest that those adjustments are holding, even as caution softens.
Saving and debt reduction remain central priorities, particularly as retirement timelines draw closer or have already begun. At the same time, the increased willingness to spend part of a refund hints at a desire to enjoy the present, not just prepare for the future.
The broader implication is that tax refunds in 2026 are less about emergency buffers and more about balance. While financial security remains front and center, Americans — especially older ones — are increasingly open to using some of that money to improve their homes, enrich their experiences, or meet personal needs.
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