How will you spend your tax refund? We've got some ideas

what taxpayers do with their tax refunds
what taxpayers do with their tax refunds

In 2009, 74% of all taxpayers received refunds worth a total of $259.35 billion. The average refund per taxpayer: a whopping $2,683.

This year, due to the Making Work Pay Tax Credit and other tax breaks, nearly 90% of Americans may receive refunds. Early data indicates that those refunds will be even bigger at an average $3,036, up more than 10% from last year.

If you're one of the lucky many to receive a refund, your first reaction may be to run out and buy something fun ... the first on your block to own the iPad? A new pair of Jimmy Choo shoes, perhaps?

But that doesn't appear to be the trend. Apparently, splurges are so last year. For 2010, most taxpayers appear to be using their refunds for more practical purposes, like paying down debt. Just ask freelance journalist P. Kim Bui. She intends to use her refund to pay off existing credit card debt. But she's not going to be completely practical. She's splurging on a tattoo, as well. "But mostly credit cards," she says.

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
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