NAPLES, Fla.--(BUSINESS WIRE)--Nearly 30 percent (29%) of U.S. adults are still likely to mail in checks to pay taxes owed to the government, according to an online survey of 1,270 adults by YouGov and ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions. Of those who chose to receive tax refunds through a check in the mail (19%), more Millennials (22%) opted for this approach over their Generation X (20%) and Baby Boomer (17%) cohorts.
“Despite the continued evolution of payment technology, nearly a third of Americans opted to write out a check and physically mail it, which takes more effort than an electronic funds withdrawal, debit or credit card payments,” said Andrew Sajeski, leader, biller solutions, ACI Worldwide. “Paying by cash or check tends to take longer, and leaves the taxpayer at risk of being late, leading to additional interest and penalty charges. Moreover, if the check gets lost in the mail or stolen, the consumer’s personal information can be violated. It’s much easier and safer to set up an electronic funds withdrawal.”
Other key findings and trends include:
Paying Taxes/Receiving Refunds
-
When it comes to paying taxes, 23 percent of U.S. adults chose
electronic funds withdrawal, with 12 percent paying by debit card, and
11 percent opting for credit card payment
- Of those who mailed in a check (29%) to pay taxes, Millennials (12%) were much less likely to do so than Generation X (28%) and Baby Boomers (43%)
- For tax refunds, a whopping 71 percent of taxpayers would choose Direct Deposit followed by 19 percent who opted to receive a check in the mail
Tax Scams
-
While most taxpayers who use a tax preparer (54%) check that they
include their preparer tax identification number (PTIN) and sign their
return, nearly half (46%) don’t do so, putting them at risk of getting
scammed
- More Millennials (56%) than Generation X (48%) and Baby Boomers (32%) fail to check their tax preparer’s credentials
- The survey showed 38 percent of U.S. adults have experienced tax scams. Of the various scams, phone scams (27%) and email scams (17%) were the most common
Filing Taxes
-
According to the survey, 40 percent of Americans are most likely to
file their taxes electronically through software or websites (e.g.
TurboTax, TaxSlayer), followed by those who file through a
professional (30%) and by mail/paper (10%)
- Generation X (51%) were more likely to file electronically through websites/software than Millennials (39%) and Baby Boomers (36%)
“More Millennials chose to receive tax refunds by check compared to the older generations, which is contrary to the general perception that this generation thrives on instant gratification,” Sajeski continued.
ACI recommends the following top tips for taxpayers this season
-- Be sure to check your tax preparer’s credentials. A legal tax preparer should have a PTIN and must sign your return.
- Electronic payments are safer. Consumers who pay their taxes by check are required to write their social security number on the back of the check, which could put them at risk since checks can easily be stolen.
- Don’t delay if paying by cash. For those who wish to pay by cash, don’t delay as it generally takes 5-7 business days to process cash payments. Visit sites like OfficialPayments.com and follow the instructions to make a cash payment with PayNearMe.
- Make the switch to digital. Try paying with a credit or debit card this year. It’s faster, and you may be able to deduct any processing fee on next year’s return, per the IRS (claimed on Schedule A, Itemized Deductions).
Methodology
All figures, unless otherwise stated, are from
YouGov Plc. Total sample size was 1,270 adults. Fieldwork was undertaken
between March 12-13, 2019. The survey was carried out online. The
figures have been weighted and are representative of all US adults (aged
18+). Generations were defined as follows: Millennial (born 1982-1999,
343 total), Gen X (born 1965-1981, 350 total), and Baby Boomer (born
1946-1964, 439 total).
About ACI Worldwide
ACI Worldwide, the Universal
Payments (UP) company, powers electronic
payments for more than 5,100 organizations around the world. More
than 1,000 of the largest financial institutions and intermediaries, as
well as thousands of global merchants, rely on ACI to execute $14
trillion each day in payments and securities. In addition, myriad
organizations utilize our electronic
bill presentment and payment services. Through our comprehensive
suite of software solutions delivered on customers’ premises or through
ACI’s private
cloud, we provide real-time, immediate
payments capabilities and enable the industry’s most complete omni-channel
payments experience. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2019
ACI, ACI Worldwide, the ACI logo, ACI Universal Payments, UP, the UP logo and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.
Product roadmaps are for informational purposes only and may not be incorporated into a contract or agreement. The development release and timing of future product releases remains at ACI’s sole discretion. ACI is providing the following information in accordance with ACI's standard product communication policies. Any resulting features, functionality, and enhancements or timing of release of such features, functionality, and enhancements are at the sole discretion of ACI and may be modified without notice. All product roadmap or other similar information does not represent a commitment to deliver any material, code, or functionality, and should not be relied upon in making a purchasing decision.
