David Stocker, 56, is banking his refund, his first in 37 years. The minister from Miami and his wife, Helen, 52, are getting back about US$1,000, he said.
"The tax break last year was a real treat," Stocker said.
The couple will increase their Roth IRA contributions, taking advantage of a limit that grew to $3,000 per person from $2,000.
Savings as a percentage of disposable personal income, the money left over after taxes and other payments, rose to 1.8 percent in January from 0.2 percent, the government has previously reported.
Consumer spending never collapsed during the recession, which started a year ago. It rose 3.1 percent last year. Still, the pace of recovery may be limited.
"While consumer spending may increase at a solid pace over the coming months, it will likely not be the driver of rapidly accelerating growth," Anthony Santomero, president of the Fed Reserve Bank of Philadelphia, said last week. He cited increased household debt as one of the restraining influences.
Consumer borrowing rose by almost US$13 billion in January, the sixth consecutive increase, and had surged by US$20 billion in November, the biggest rise in six decades, Fed data show.
Household debt, including mortgages, rose 8.6 percent last year, compared with 8.5 percent in 2000.
The impact of tax refunds may depend on people such as Kristin Dion. The 21-year-old student in mechanical engineering at the Georgia Institute of Technology is thinking about using the US$700 she expects to receive to buy a computer. Maybe.
``I'm a student,'' she said. ``I could use the cash.''
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