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Fewer Americans are expecting the financial boost of a tax refund this year. In an American Express survey of roughly 1,500 adults, 59 percent of respondents said they expect a refund check this year, down from 64 percent last year.

At the same time, 19 percent expect to owe money come tax time, compared to just 13 percent in 2012. And nearly 30 percent of respondents with a household income greater than $100,000 said they expect to owe the IRS this year.

The growing number of people who owe taxes is likely a sign that the economy is improving, said Will McBride, chief economist at the Tax Foundation, a nonprofit research group.

"They are earning more and that means they get less from the IRS," he said.

Of those who will owe money, most said they would pay with cash from their checking or savings account. But nearly 15 percent said they would pay with a credit card, up from 7 percent last year.

Of those expecting a refund, 37 percent plan to use it to pay down debt or bills, while 26 percent plan to save the money. Only 28 percent said they expect to spend their refund check on themselves or family, travel, home improvements or a big-ticket item.

"The mentality from the recession is still there," said Melanie Backs, an American Express Co. (AXP) spokeswoman. "While people are feeling more confident, they learned some valuable lessons."

The coveted refund checks, which averaged about $2,700 last year, should come in handy as consumers deal with smaller paychecks after a two-year payroll tax "holiday" expired this year.

Pennsylvania resident Kelly Benedetti said she and her husband would love to spend their expected tax refund on travel abroad. But instead, Benedetti, 32, and a research scientist with a doctorate in educational research from the University of North Carolina at Greensboro, said she will put the extra cash, which she estimated will be less than $1,000, towards her student loan debt from graduate school.

"Nine years in higher education really gets you," she said.

A newlywed and new homeowner, Benedetti said she was surprised to be receiving a refund at all because she aims to pay the exact amount of taxes she owes throughout the year to avoid giving "an interest-free loan to the government."

"I just don't understand how people want these huge giant refunds," she said. "It means they've overpaid all year."

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Amending Your Income Tax Return

What if you've sent in your income tax return for a previous year and then discover you made a mistake? You can make things right by filing an amended tax return. And, don't think an amended return will automatically cost you money; it's perfectly okay to change a return to capture a tax break you missed the first time around.

How to File Taxes with IRS Form 1099-MISC

If you receive tax form 1099-MISC for services you provide to a client as an independent contractor and the annual payments you receive total $400 or more, you'll need to file your taxes a little differently than a taxpayer who only receives regular employment income reported on a W-2.

What If I Did Not File My State Taxes?

At the time of this writing, the only states that do not charge a state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you live or earn money in one of the other 41 states or the District of Columbia, you may need to file a state income tax return by April 15. It is a separate and independent requirement from filing your federal tax return and failure to file it on time may result in interest and penalty charges.

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oram020347

I have two children in college. And I am still paying my student loans from when I went back to school 15 years ago.

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September 13 2013 at 2:06 AM Report abuse rate up rate down Reply
scottee

why do we have to play this tax game with 73,000 pages of rules? anyone?

March 25 2013 at 10:40 AM Report abuse +1 rate up rate down Reply
2 replies to scottee's comment
buddyboygabe

working families must help this administration's waste spending. Over 340,000 fed's worker's owed ~$1.6 Billions dollars on latest repts.

March 25 2013 at 3:51 PM Report abuse +1 rate up rate down Reply
maceandemma

So those with the most (and least) can pay less.

March 25 2013 at 4:30 PM Report abuse +1 rate up rate down Reply