More than a Third of Millennials Who File Tax Returns Go To Mom And Dad For Tax Help, TaxAct Survey Shows
18 March 2017 - 12:00AM
Tax Day is just around the corner, and millennials who waited until
the last minute are phoning home. According to a recent ORC
International Survey conducted for TaxAct among millennials who
file taxes, 37 percent of millennials said they rely on their
parents to provide reminders or guidance on tax returns, do their
tax returns for them, or let them use their accountant. The survey
also revealed American taxpayers are largely in the dark about DIY
tax industry pricing practices.
Specifically, two-thirds of taxpayers (66 percent) are unaware
tax software companies raise their fees as the filing deadline
approaches. Yet, a large majority (59 percent) still feel that DIY
tax software companies act in the taxpayer’s best interest,
indicating that most taxpayers have faith in the motivations of
their software providers that may not always be warranted.
“While it’s a natural instinct to trust parents or DIY tax
software providers on tax-related issues, Americans of all ages
would be better served to do careful homework about preparing their
own taxes online before choosing a provider,” said Sanjay Baskaran,
president of TaxAct. “We want to make it easy for Americans to
understand what they’ll pay and what they’ll get in return when
they choose TaxAct. That’s why our online customers can lock in
their price early in the season. We are changing the conversation
around taxes in other ways too – like helping Americans rethink
what it means to get a refund.”
Baskaran mentioned the survey found that one in four millennials
(27 percent) reported feeling lured by a tax filing solution, only
to be charged later for specific features and services. “Such
‘bait-and-switch’ tactics have no place in our industry. That’s
precisely why we are upfront and transparent about our prices.”
Additional key findings from the survey include:
- Millennial men are more likely to ask for
help: Forty-four (44) percent of men said they get help
from parents to get taxes done compared to 31 percent for women.
This is consistent with the larger percentage of men who get
assistance with expenses such as cell phone and cable bills, rent,
insurance and car payments.
- Paying too much: Twenty-six (26) percent of
Americans feel they pay too much for services or support they use
to file taxes. This jumps up to 33 percent for Gen X.
- Taxpayers are missing out on a raise: Despite
the fact that a big refund means giving the IRS an interest-free
loan all year vs. getting a raise in each paycheck, 61 percent of
Americans still prefer to receive a big refund check. This jumps to
70 percent for households with children under the age of 13.
To educate consumers on how they can take home more in each
paycheck and receive a smaller refund, TaxAct recently launched the
“Get a Raise, Not a Refund” sweepstakes. The campaign encourages
consumers to beat the system by taking a pledge to rethink the tax
refund for a chance to win a $10,000 grand prize. In addition,
TaxAct is also highlighting the “alternative facts” of the DIY tax
software industry on their blog at blog.taxact.com.
Methodology
This survey of 2,043 adults comprising 1,032 men and 1,011 women
18 years of age and older was conducted by ORC International on
behalf of TaxAct. This online omnibus survey was live on February
27-March 1 and March 6-8, 2017.
About TaxAct
TaxAct is a leading provider of affordable digital and download
tax software for individuals, business owners and tax
professionals. The company’s mission is to empower people to
navigate the complexities of tax and finance with ease and accuracy
– at a clear, transparent and fair price. As evidence of its
commitment to transparent pricing, TaxAct has long-offered a Price
Lock Guarantee that ensures its customers pay the price listed for
their selected online product at the time they started their
return, no matter when they file. TaxAct was one of the top three
visited online tax preparation destinations last tax season1 and
has assisted with approximately 65 million e-filed federal returns
since 2000. To learn more about TaxAct, a business of Blucora, Inc.
(NASDAQ:BCOR), visit www.TaxAct.com or connect with us
on Facebook, LinkedIn and Twitter.1 According
to collective week end reports for taxact.com released by
SimilarWeb Ltd.
Contacts
Shaunna Morgan
TaxAct Public Relations
pr@taxact.com
319.531.3626
Mari Abe
Peppercomm
mabe@peppercomm.com
415.633.3204
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