The Internal Revenue Service says it has already issued more than 40 million refunds this year, with an average refund of $3,116.
It is a prime opportunity to boost a retirement plan, although a new survey released late last week by financial services firm Edward Jones found that saving for retirement may be easier said than done.
The survey showed that 30 percent of the respondents planned to save a tax refund and eight percent planned to invest it.
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Fifty-two percent of those surveyed said that if they were to get a refund this year, they'd spend it on necessary items, including household expenses or credit card debt, while eight percent of respondents would spend it on something fun, such as clothes, entertainment or a meal out, and two percent weren't sure.
"You also find significant spending among households who say they're saving it," said Jonathan Parker, a finance professor at MIT's Sloan School of Management who has studied how people spend money they get back from the government.
Parker said people may just see that their bank balance is a bit higher or know they just deposited a big check and feel comfortable spending a bit more even a month or two later.
In order to ensure the refund is put to good use, Parker advised putting it where it's hard to get, like a retirement plan or mutual fund account.
The phone survey of 1,108 Americans was conducted earlier this year and had a margin of error of plus or minus three percent.
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