Apr. 5--PAY DIRT ANDREW NEWMAN

For many Americans, the tax refund used to be like an early Christmas present. After getting that check in the mail, it was off to the mall for a shopping spree.

The first time I did my taxes, the refund wasn't much -- $300 or so. But, hey, it was $300 I didn't have before. So I spent it all. I went out and bought myself a brand new high-definition TV.

But that was back in the good old days of 2008. Things are different now. With the economy the way it is, tax refunds are becoming less of a pleasant surprise and more of a much-needed way to pay the bills.

A recent national Harris survey commissioned by ING DIRECT showed 51 percent of American taxpayers need their refunds for basic commodities -- that includes 65 percent of respondents younger than 35.

Moreover, 71 percent of surveyed Americans said they'll save their refunds or pay off debt instead of spending them.

At AccountAbility Minnesota (AAM), which prepares free tax returns for individuals making less than $30,000 or families making less than $45,000, a majority of customers say they're using part of their refunds to pay off bills or debt.

AAM offers individual tax preparation as well as an Express Refund Loan and Savings program, where people can get their federal refunds in as little as one to two business days. They also partner with credit unions and banks to help customers open free savings accounts.

"Most of them need their money to pay debt, pay college loans or for daily use," said Mo Sweidan, a public accounting and finance major at Augsburg College. Sweidan is one of AAM's many trained volunteer tax preparers.

Sweidan sees a wide variety of people seeking tax help, from people who have been filing for years to college students to recent high school graduates filing for their first time.

To many burdened Minnesotans, AAM offers an easy solution in an uneasy time.

"A couple of people have lost their jobs, and they come to e-file to get money quicker," he said.

Sweidan himself is changing his refund habits this year. A full-time student with a part-time job, Sweidan will use this year's refund to pay off credit-card debt -- the first year he's had to do that.

"I tend to use the 'buy-now-pay-later' model," he said. "And the later is now."

In past years, Sweidan would spend his refund, or maybe put it in his Roth IRA. But the current economy led to fewer hours at work and an increase in debt.

Bigger returns possible

There is some good news on the tax front.