Nearly 30 Percent of U.S. Adults Still Likely to Mail in Checks to Pay Taxes
01 April 2019 - 11:00PM
Business Wire
When it comes to receiving tax refunds, more
Millennials opted for a check in the mail compared to Generation X
and Baby Boomers
Nearly 30 percent (29%) of U.S. adults are still likely to mail
in checks to pay taxes owed to the government, according to an
online survey of 1,270 adults by YouGov and ACI Worldwide (NASDAQ:
ACIW), a leading global provider of real-time electronic
payment and banking solutions. Of those who chose to
receive tax refunds through a check in the mail (19%), more
Millennials (22%) opted for this approach over their Generation X
(20%) and Baby Boomer (17%) cohorts.
“Despite the continued evolution of payment technology, nearly a
third of Americans opted to write out a check and physically mail
it, which takes more effort than an electronic funds withdrawal,
debit or credit card payments,” said Andrew Sajeski, leader, biller
solutions, ACI Worldwide. “Paying by cash or check tends to take
longer, and leaves the taxpayer at risk of being late, leading to
additional interest and penalty charges. Moreover, if the check
gets lost in the mail or stolen, the consumer’s personal
information can be violated. It’s much easier and safer to set up
an electronic funds withdrawal.”
Other key findings and trends
include:
Paying Taxes/Receiving Refunds
- When it comes to paying taxes, 23
percent of U.S. adults chose electronic funds withdrawal, with 12
percent paying by debit card, and 11 percent opting for credit card
payment
- Of those who mailed in a check (29%) to
pay taxes, Millennials (12%) were much less likely to do so than
Generation X (28%) and Baby Boomers (43%)
- For tax refunds, a whopping 71 percent
of taxpayers would choose Direct Deposit followed by 19 percent who
opted to receive a check in the mail
Tax Scams
- While most taxpayers who use a tax
preparer (54%) check that they include their preparer tax
identification number (PTIN) and sign their return, nearly half
(46%) don’t do so, putting them at risk of getting scammed
- More Millennials (56%) than Generation
X (48%) and Baby Boomers (32%) fail to check their tax preparer’s
credentials
- The survey showed 38 percent of U.S.
adults have experienced tax scams. Of the various scams, phone
scams (27%) and email scams (17%) were the most common
Filing Taxes
- According to the survey, 40 percent of
Americans are most likely to file their taxes electronically
through software or websites (e.g. TurboTax, TaxSlayer), followed
by those who file through a professional (30%) and by mail/paper
(10%)
- Generation X (51%) were more likely to
file electronically through websites/software than Millennials
(39%) and Baby Boomers (36%)
“More Millennials chose to receive tax refunds by check compared
to the older generations, which is contrary to the general
perception that this generation thrives on instant gratification,”
Sajeski continued.
ACI recommends the following top tips for
taxpayers this season
-- Be sure to check your tax preparer’s credentials. A
legal tax preparer should have a PTIN and must sign your
return.
- Electronic payments are safer.
Consumers who pay their taxes by check are required to write their
social security number on the back of the check, which could put
them at risk since checks can easily be stolen.
- Don’t delay if paying by cash.
For those who wish to pay by cash, don’t delay as it generally
takes 5-7 business days to process cash payments. Visit sites like
OfficialPayments.com and follow the instructions to make a cash
payment with PayNearMe.
- Make the switch to digital. Try
paying with a credit or debit card this year. It’s faster, and you
may be able to deduct any processing fee on next year’s return, per
the IRS (claimed on Schedule A, Itemized Deductions).
MethodologyAll figures, unless otherwise stated, are from
YouGov Plc. Total sample size was 1,270 adults. Fieldwork was
undertaken between March 12-13, 2019. The survey was carried out
online. The figures have been weighted and are representative of
all US adults (aged 18+). Generations were defined as follows:
Millennial (born 1982-1999, 343 total), Gen X (born 1965-1981, 350
total), and Baby Boomer (born 1946-1964, 439 total).
About ACI WorldwideACI Worldwide, the Universal
Payments (UP) company, powers electronic
payments for more than 5,100 organizations around the world.
More than 1,000 of the largest financial institutions and
intermediaries, as well as thousands of global
merchants, rely on ACI to execute $14 trillion each day in
payments and securities. In addition, myriad organizations utilize
our electronic bill presentment and payment services.
Through our comprehensive suite of software solutions delivered on
customers’ premises or through ACI’s private cloud, we provide
real-time, immediate payments capabilities and enable the
industry’s most complete omni-channel
payments experience. To learn more about ACI, please
visit www.aciworldwide.com. You can also find us on
Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2019
ACI, ACI Worldwide, the ACI logo, ACI Universal Payments, UP,
the UP logo and all ACI product/solution names are trademarks or
registered trademarks of ACI Worldwide, Inc., or one of its
subsidiaries, in the United States, other countries or both. Other
parties' trademarks referenced are the property of their respective
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version on businesswire.com: https://www.businesswire.com/news/home/20190401005263/en/
Media Contacts:Dan RingE-mail:
dan.ring@aciworldwide.comPhone: 781-370-3600orNidhi AlbertiE-mail:
nidhi.alberti@aciworldwide.comPhone: 781-370-3600
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