Taxes 2024: Over 25% Use Refunds To Save Money on Medical Bills — 10 Procedures Top the List
Written by
Vance Cariaga
Edited by
Nicholas Morine
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About three-quarters of U.S. tax filers are expected to get refunds during the 2024 tax season, and so far the average refund is higher than it was a year ago. While many taxpayers plan to put part or all of the money toward savings or debt reduction, a sizeable number will also put it toward medical bills.
More than one-in-four Americans have used their tax returns for medical bills in the past, according to a new survey of 1,000 U.S. adults conducted by Tebra, a provider of digital tools and support to help independent practices operate efficiently. About one-in-six plan to use this year’s return to pay off medical bills.
Among the other findings from the survey:
- Nearly one-in-10 respondents plan to use their tax returns for elective surgery, with the leading procedures being cosmetic dentistry (26% of respondents), facial fillers (25%) and Lasik surgery (22%).
- 20% of Gen Z respondents plan to use their tax returns to pay off medical bills.
- The top five states planning to use tax returns to pay off medical bills are Illinois (21% of respondents), Ohio (18%), Virginia (17%), Texas (17%) and Pennsylvania (16%).
- The top five states planning to use tax returns for elective procedures are New York (12%), Virginia (12%), Illinois (11%), Texas (10%) and Florida (9%).
Learn More: Billionaires vs. the Middle Class: Who Pays More in Taxes?
Tax Refunds Can Help Soothe Stress
A blog on The Intake website that analyzed the Tebra study said that relying on tax refunds is both a “financial strategy” and a “psychological salve.” The vast majority of survey respondents (82%) reported a reduction in stress knowing that their tax refund is coming.
“This finding highlights the tax refund’s role as a cushion against the anxiety tied to healthcare expenses,” the blog said.
In terms of the types of medical procedures/bills taxpayers plan to spend their refunds on, here are the top 10 cited by the Tebra survey:
- Dental care: 44% of respondents.
- Vision care: 25%
- Mental health services: 21%
- Prescription medications: 19%
- Emergency medical expenses: 17%
- Preventive screenings: 15%
- Chronic condition management: 13%
- Health and wellness programs: 12%
- Blood tests: 11%
- Physical therapy: 7%
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