TaxAct^®, a leading provider of tax preparation software for individuals and businesses, today released the results of a new survey exploring consumer tax season behaviors and filing habits. Data from this third-party survey of 1,000 adults across the United States uncovered common fears and uncertainty surrounding the filing process for many filers.

Filers Fear Inaccuracies, Experiencing Uncertainty
Notably, the survey found that many filers are concerned about making mistakes during the filing process. In fact, more than one-quarter of respondents (28%) noted that filing their taxes incorrectly is a top concern during tax season, and another 14% are concerned about not understanding the tax filing process or requirements. Some respondents even admitted to making mistakes when reporting income. For example, a handful of respondents didn't file income earned from their side gig (14%), and others didn't report winnings from gambling or the lottery (9%).

In addition to these fears, the survey shows that many filers are dealing with uncertainty as they don't know what to expect when filing. Nearly one-quarter (23%) of respondents say that not knowing if they owe taxes or will get a refund is a big concern during tax season. There is also uncertainty around how much they will owe, with one-quarter (25%) of respondents worried about paying more taxes than expected.

Concerns About Maximizing Refunds
For many filers, tax refunds are top of mind. One of the top concerns among respondents is not receiving their maximum refund, with more than one in four (28%) identifying this as their biggest concern during tax season. Some respondents also shared that they have taken some steps to increase their refunds or lower their owed costs. The top three strategies cited include making charitable donations (14%), filing jointly or separately for the best tax outcome (if legally married) (13%) and increasing contributions to retirement accounts (12%).

Filers also have an eye on tax deductions to potentially boost their refund. While most respondents took the standard deduction on their return, some respondents (10%) shared that they have claimed unusual business expenses to lower their taxable income. For example, some filers admitted to claiming their dog as a home security system, which would not be considered an eligible deduction by the IRS. It's also important that filers understand what deductions they are eligible for to avoid mistakes. Some didn't know they could deduct student loan interest, so they accidentally left it out (10%), while one respondent claimed to have mistakenly claimed their pet hamster as a dependent.

"With filers worried about the accuracy of their returns and whether they will receive their maximum refund, they may look to tools that promise an optimal return," said Bastien Martini, Chief Product & Marketing Officer, TaxAct. "TaxAct's guarantees, including our Maximum Refund Guarantee and $100k Accuracy Guarantee, offer filers the peace of mind they are getting every dollar they deserve. Filers can rest assured that they won't get a bigger refund with any other tax filing software, and they can count on TaxAct to be 100% correct, backed by $100,000."

When it comes to spending their refund, about two-thirds of respondents (67%) who receive a refund use it for more conventional purchases such as paying bills (28%), saving for the future (23%) or paying off loans or debt (16%). Interestingly, several respondents noted opting for more splurge-worthy purchases, such as a raincoat for their cat or a giant inflatable unicorn.

Combatting Concerns with DIY Tax Solutions
Last year, more than 65 million used DIY tax software to e-file their return, according to the IRS. Additionally, the number of U.S. taxpayers preparing their tax returns via DIY solutions is on the rise, increasing by 1.6% from 2023 to 2024.

The popularity of DIY tax solutions is also clear in TaxAct's survey, which found that most surveyed (64%) are turning to DIY tax solutions. However, only about one-in-four respondents (28%) trust themselves to do their own taxes, making adequate support options crucial.

To help filers navigate the tax filing process, TaxAct provides access to tax experts through its expanded suite of Xpert Assist live help options with customizable support to fit every level of return complexity. Whether filers have a quick question along the way or want a credentialed expert to check their return before hitting submit, they can connect with one of TaxAct's 100% U.S.-based, credentialed tax experts.

Martini continued: "We know that completing taxes can be complicated and confusing. That's why we're dedicated to making prep and filing simple, streamlined and straightforward for every tax filer, with support available along the way – no matter how complex their return. Using TaxAct means filers are not alone on their tax journey."