The State of the American Taxpayer has been released, and it examines how people approach tax filing software and preparation services. The survey of 4,621 Americans highlights the desire for year-round tax engagement, a priority for data accuracy and privacy, and a willingness to tackle the inequities of the tax system. It's all about the future of tax innovation and how embedded tax, a hot new fintech category could provide the solutions people want. If you're a CEO, CPO, or Product Manager, you need to read this thing yesterday.
TL;DR:
There is a willingness to try new products: 26% of all respondents said that nothing would prevent them from trying a new tax product.
People want to spend more time, not less on their taxes: 41% put estimation and guidance along the way in their top 3 most important needs (ahead of less time spent).
People are willing to spend $$ for data accuracy and confidence: The top 2 benefit statements were confidence in data input and getting their maximum refund.
Taxes are a solitary chore. Although 52% of our sample was married or in a domestic partnership, only 30% said that choosing a tax software was a joint decision between them and their partner.
Gen Z and Millennials are more likely to use DIY tax software.
Females are more likely to use tax preparation services.
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