eCommerce Analytics

In 2009, the IRS refunded nearly $260 billion dollars by the tax filing deadline. The average amount refunded was $2683. According to a recent study by the NRF, 12.5% of Americans are eager to spend their refunds on big ticket items like TVs, cars, and furniture. Put all this together and we see that, for retailers, $32.5 billion is up for grabs in the 2010 tax refund bonanza.

Timing is Everything

When is the best time to start marketing to these newly flush buyers? Digging around in published IRS statistics for 2008 and 2009 we see that most Americans file their tax returns right before the April 15th deadline.

No surprise there. Those expecting big refunds, however, file earlier. How much earlier? Early February.

Incorporating the average refund amount into the timing of filings, we see that the real money is at stake months before “tax season”.

The Second Wave Is Coming, Twice

While there is another peak of refunds issued around April 15, one thing to consider when timing your tax season promotions is that the number of filers getting their refunds by direct deposit plummets by this time of year.

So if you’re planning on running a promotion shortly after the April 15 filing deadline remember that only half of the procrastinating group of taxpayers getting a refund will receive it by then. You should also consider running a 2nd promotion in mid May when the paper checks start rolling in.