New Tax Survey Finds Millennials and Men Most Likely to Be Overconfident in Their Tax Knowledge | New
JERSEY CITY, NJ, April 28, 2021 / PRNewswire / – As the 2020 tax filing deadline approaches, a new Credello survey suggests that Millennials are overly arrogant about their knowledge of taxes compared to Gen X and Gen Z. The survey also found that, regardless of age group, men are more self-confident about their lives. tax expertise than their female counterparts. However, women scored higher in tax literacy across all age groups.
Key information includes:
- 83% of millennials said they had adequate tax knowledge, but 32% scored a B or less on a simple tax quiz
- 34% of men said they knew everything about taxes compared to 23% of women, but women generally performed better on the same quiz
- More than half of respondents do not understand how marginal tax rates work
- More than a third of respondents do not know what deductions they can claim
The online survey of 1,000 Americans aged 18 to 56, conducted on April 18, 2021, asked respondents nationwide a series of questions about taxes, including how they handle deductions, factors that influence how they file their returns, their biggest tax fears and questions, and what ‘they usually do with their tax refunds.
Overall, Americans surveyed fear finding out they owe the IRS money (31%), not maximizing their reimbursement (22%), and making a costly reporting error (22%) . In comparison, people are much more concerned about the financial impact of their taxes than the potential privacy concerns. Only 7% of those surveyed said having their identity stolen would be scarier than missing the refund money or giving the IRS a reason to come knocking on the door.
When asked what they usually do with their tax refund, 29% of respondents said they use it to pay off debts, while 18% put it in savings, 17% use the money for living expenses, 12% invest it and 10% spend it. to take care of oneself.
Additional highlights from the Credello survey include:
- 68% of respondents claim the standard deduction, while only 21% regularly detail
- 63% of respondents spend $ 100 or more doing their taxes each year
- 54% of respondents try to file their taxes as early as possible, while 15% postpone them at the last minute
- 44% of respondents (and 56% of men and Gen Z respondents) thought they could report a pet as a dependent
- Family (35%) has the greatest influence on how people do their taxes, followed by online resources (19%), friends (15%) and social media (13%).
Overall, survey data suggests that there is an opportunity for Americans of all ages, especially millennials, to learn more about taxes and fill those gaps ahead of tax season 2021. A a little humility might not hurt either.
Designed for millennials, Credello is a user-friendly platform that simplifies financial decisions by providing personalized, on-demand recommendations for debt consolidation, personal loans, and more, so users can choose the best solution with confidence. confidence.
When using data from this survey, please credit Credello with the link to: www.credello.com/financial-resources/millennials-and-taxes-survey/