US Consumers and Taxes Market Report 2021
£ 3,695 (Excl.Tax)
Description
Providing the most comprehensive and up-to-date information and analysis of the US Consumers and Taxes market, including the behaviours, preferences and habits of the consumer.
The tax filing and subsequent refund or payment process is a multibillion dollar event on consumers’ bottom lines. Most consumers file taxes, yet it is a segmented market with many DIYers, who mainly rely on tax preparation software, and many others who pay for professional help. Tax filing presents a variety of opportunities for institutions to build relationships with consumers – not just regarding taxes but with their financial situation overall.
Tax return receipts increased over 50% between 2010 and 2019, with over $3.5 trillion collected in the most recent filing year. While much of tax collection is done via paycheck withholding, most consumers receive a tax refund at year-end; in fact, the majority would prefer to receive a tax refund than pay less in tax throughout the year.
Nearly 56% of tax receipts, some $2 trillion, are from individual tax collections. Individual tax receipts grew by more than 68% between 2010 and 2019, while business tax receipts declined. The bulk of tax returns are completed by families and individuals. Businesses represent a much smaller share.
Read on to discover more details or take a look at all of our US Financial market research.
Quickly understand
- The impact of COVID-19 on consumer tax filings both currently and in the future.
- How consumers file taxes and segmentation between DIY and paid-professional markets.
- Millennials, taxes and where they might be most influenced to change.
- Tax savings strategies and opportunities to reach more-affluent individuals.
- Consumers and taxes market report.
- Consumer taxes statistics.
Covered in this report
Brands:TurboTax, Varo, Quicken, H&R Block.
Expert analysis from a specialist in the field
This report, written by Jennifer White Boehm, a leading analyst in the Financial sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Taxes are due every year, even in a pandemic. Software dominates the DIY market, while accountants dominate the professional. For an industry that does not seem to change, tax preparers need to highlight how their strategies can prove most efficient and profitable for consumers.
Jennifer White Boehm
Associate Director, Finance Reports
Table of Contents
-
Overview
- Key issues covered in this Report
- Definition
- COVID-19: market context
- Economic and other assumptions
-
Executive Summary
- Top takeaways
- Market overview
- Impact of COVID-19 on tax preparation and filing
- Figure 1: Short-, medium- and long-term impact of COVID-19 on tax preparation and filing, April 2021
- Opportunities and challenges
- Tax preparers can embrace the video chat like other industries.
- Even as economy recovers, consumers may still choose to DIY.
- Tax preparers – professional or DIY – must prove their worth.
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Market Factors
- Tax returns continue steady climb
- Figure 2: Gross tax collections, at current prices, fiscal years 2010-19
- Individual returns represent bulk of filings
- Figure 3: Gross tax collections, by segment, at current prices, fiscal years 2010-19
- Steep fall off in returns and receipts in 2020
- Figure 4: Filing statistics, May 17, 2019 and May 15, 2020
- High unemployment impacts taxable income
- Figure 5: Consumer confidence and unemployment, 2000-April 2021
- Tax returns continue steady climb
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Companies and Brands
- TurboTax Live Full Service aims for videoconferencing normalcy
- Figure 6: TurboTax Ad, 2020
- H&R Block focuses on free filing
- Figure 7: H&R Block emails, 2020
- Online bank Varo demonstrates effective link between taxes and banking
- Figure 8: Varo Instagram post, 2020
- TurboTax Live Full Service aims for videoconferencing normalcy
-
The Consumer – Key Takeaways
- DIY filers increase in number for 2019
- Millennials comfortable doing own taxes, but open to change
- Tax software dominates DIY market
- Accountants are primary method for those using professional help
- Third-party preparers common among Hispanics
- Check is most common form of payment
- Most engage in some tax planning strategies
- Consumers sticking with same tax filing method
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Tax Filing Results and Behaviors
- Nearly half of taxpayers at least get a federal refund
- Figure 9: Tax filing result, November 2020
- More income, more taxes due
- Figure 10: Tax filing result, by household income, November 2020
- Many single adults don’t file
- Figure 11: Non-filers, by marriage status and gender, November 2020
- There is a need for non-English speaking tax professionals
- Figure 12: Tax filers, by language spoken at home, November 2020
- Nearly half of taxpayers at least get a federal refund
-
Tax Preparation
- Nearly half of US adults are doing their own taxes
- Figure 13: Tax preparation, May 2016 and November 2020
- Men are more likely to do their own taxes
- Figure 14: Tax preparation, by gender, November 2020
- Millennials are self-sufficient for tax preparation
- Figure 15: Tax preparation, by generation, November 2020
- The self-employed rely on tax professionals
- Figure 16: Professional tax preparation, by employment status, November 2020
- Nearly half of US adults are doing their own taxes
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Tax Preparation Method
- Tax software dominates DIY market
- Figure 17: Tax preparation method, November 2020
- Volunteer organizations effective with lower-income audience
- Figure 18: Tax preparation method, by household income, November 2020
- Tax software dominates DIY market
-
Professional Preparation Choice
- Accountants are primary method for those using professional help
- Figure 19: Professional tax preparation choice, November 2020
- Women are more likely to use an accountant
- Figure 20: Professional tax preparation choice, by gender, November 2020
- Baby Boomers stick with accountants
- Figure 21: Professional tax preparation choice, by generation, November 2020
- Third-party preparers common among Hispanics
- Figure 22: Professional tax preparation choice, by Hispanic origin, November 2020
- High earners provide best market for accountants
- Figure 23: Professional tax preparation choice, by household income, November 2020
- Accountants are primary method for those using professional help
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Tax Payment Method
- Check is most common form of payment
- Figure 24: Tax payment method, November 2020
- Young consumers far more likely to use cards
- Figure 25: Federal tax payment method, by generation, November 2020
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- Figure 26: State tax payment method, by generation, November 2020
- Those working with professional pay by check
- Figure 27: Federal tax payment method, by tax filing method, November 2020
- Figure 28: State tax payment method, by tax filing method, November 2020
- Check is most common form of payment
-
Tax Reduction Strategies
- Most engage in some tax planning strategies
- Figure 29: Tax reduction strategies, November 2020
- Men more actively engage in tax planning
- Figure 30: Tax reduction strategies, by gender, November 2020
- Most engage in some tax planning strategies
-
Attitudes about Taxes
- Despite pandemic, consumers sticking with same tax filing method
- Figure 31: Attitudes about taxes, November 2020
- COVID-19 has greatest impact on Hispanic tax filing
- Figure 32: Attitudes about taxes, by Hispanic origin, November 2020
- Younger generations still need tax help
- Figure 33: Attitudes about taxes, by generation, November 2020
- DIYers more confident, lack of faith in professionals
- Figure 34: Attitudes about taxes, by tax filing method, November 2020
- Despite pandemic, consumers sticking with same tax filing method
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Use of Tax Refund
- Most consumers would save tax refund
- Figure 35: Use of tax refund, November 2020
- Millennials looking to pay down debt
- Figure 36: Use of tax refund, by generation, November 2020
- Most consumers would save tax refund
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
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