More than half of Americans consult a professional to help with their taxes
- last year
Nearly half of Americans have a headache just thinking about their taxes (48%), according to new research.
A survey of 2,000 U.S. adults, 500 of them CPAs and bookkeepers, looked at some of the pain points around tax season.
Most respondents start filing their taxes in February (39%) or March (28%), but the average tax professional estimates that 41% of people file their personal taxes too late, with one in six recommending that people start filing as early as January.
Conducted by OnePoll for SurePayroll, the survey found that across the board, the most stressful parts of the tax process are gathering the necessary information (40%), waiting for employer documents (33%) and concerns about needing to pay money back (27%).
“Starting tax prep well before April pays big returns for small business owners when it comes to reducing stress,” said Marcus O’Malley, SurePayroll CPA/reseller product lead. “Half of CPAs recommend that small business owners receive professional assistance with their taxes. And 79% have referred their clients to an online payroll service, a move that centralizes important tax prep documents and saves small business owners time and stress.”
While 47% of all respondents file their taxes on their own, 53% consult a professional to help, including CPAs and bookkeepers (53%).
Tax professionals consult others in their field when they need help maximizing their return (63%) or are looking for financial advice (62%). However, 73% admit that they’d be concerned with finding a professional who maximizes their return.
They understand that time is money since the average CPA/bookkeeper would spend $1,900 for another professional to help meet their tax needs, and 43% would spend upwards of $2,000.
For the average respondent who may have less extensive tax needs, people would spend just under $500 for professional help.
CPAs and bookkeepers advise that professional tax help is necessary when someone makes a certain income (53%) and 44% said anyone who has any kind of paid job should seek a tax preparer’s opinion.
Other pieces of advice they’d give to those filing taxes are to consider an alternative such as an online service or a large tax-preparing company (37%), make sure beneficiary designations are up to date (33%) and to take measures to shield yourself from tax scams/fraud (33%).
LEAST-KNOWN TAX WRITE-OFFS CPAS WISH CLIENTS KNEW
Child and dependent care tax credit — 34%
Reinvested dividends — 32%
Out-of-pocket charitable contributions — 31%
Lifetime Learning credit — 31%
Earned income tax credit (EITC) — 28% [TIED]
Deduction of Medicare premiums for the self-employed — 28% [TIED]
Student loan interest paid by you or someone else — 28%
State sales tax — 23%
American Opportunity credit — 19%
State tax you paid last spring — 18%
A survey of 2,000 U.S. adults, 500 of them CPAs and bookkeepers, looked at some of the pain points around tax season.
Most respondents start filing their taxes in February (39%) or March (28%), but the average tax professional estimates that 41% of people file their personal taxes too late, with one in six recommending that people start filing as early as January.
Conducted by OnePoll for SurePayroll, the survey found that across the board, the most stressful parts of the tax process are gathering the necessary information (40%), waiting for employer documents (33%) and concerns about needing to pay money back (27%).
“Starting tax prep well before April pays big returns for small business owners when it comes to reducing stress,” said Marcus O’Malley, SurePayroll CPA/reseller product lead. “Half of CPAs recommend that small business owners receive professional assistance with their taxes. And 79% have referred their clients to an online payroll service, a move that centralizes important tax prep documents and saves small business owners time and stress.”
While 47% of all respondents file their taxes on their own, 53% consult a professional to help, including CPAs and bookkeepers (53%).
Tax professionals consult others in their field when they need help maximizing their return (63%) or are looking for financial advice (62%). However, 73% admit that they’d be concerned with finding a professional who maximizes their return.
They understand that time is money since the average CPA/bookkeeper would spend $1,900 for another professional to help meet their tax needs, and 43% would spend upwards of $2,000.
For the average respondent who may have less extensive tax needs, people would spend just under $500 for professional help.
CPAs and bookkeepers advise that professional tax help is necessary when someone makes a certain income (53%) and 44% said anyone who has any kind of paid job should seek a tax preparer’s opinion.
Other pieces of advice they’d give to those filing taxes are to consider an alternative such as an online service or a large tax-preparing company (37%), make sure beneficiary designations are up to date (33%) and to take measures to shield yourself from tax scams/fraud (33%).
LEAST-KNOWN TAX WRITE-OFFS CPAS WISH CLIENTS KNEW
Child and dependent care tax credit — 34%
Reinvested dividends — 32%
Out-of-pocket charitable contributions — 31%
Lifetime Learning credit — 31%
Earned income tax credit (EITC) — 28% [TIED]
Deduction of Medicare premiums for the self-employed — 28% [TIED]
Student loan interest paid by you or someone else — 28%
State sales tax — 23%
American Opportunity credit — 19%
State tax you paid last spring — 18%