Tax Day is right around the corner. In our latest Lab42 study, we conducted research on Millennials, surveying 500 consumers, ages 18-34, who manage their own finances, to determine their habits and preferences when it comes to filing their tax returns.
Are they procrastinators, waiting until the last minute to file or planning to file an extension? With a weak economy and limited disposable income, are their tax refunds burning a hole in their pocket? The results may surprise you.
The survey, conducted from March 18 to 21 2013, found that nearly three-quarters of Millennials surveyed (73 percent) had finished filing their 2012 tax return at the time of the study, suggesting that, as a generation, they may be more financially responsible than people think. Nineteen percent had not finished filing, and 8 percent were not filing 2012 taxes.
Among those filing, they did so with time to spare: 71 percent filed at least one month prior to Tax Day. Just two percent plan to file the day of or day before, and only one percent plan to file an extension.
Many Millennials rely on a self-sufficient solution when it comes to their tax return: 41 percent rely on tax software, and among those, nearly two-thirds (64 percent) use Turbo Tax. Millennials are also brand loyal when it comes to tax software: 85 percent use the same software every year, with many citing access to their previous tax returns as particularly convenient.
When it comes to tax refunds, 89 percent of Millennials surveyed either received or expect to receive one this year. As a group, they prove to be responsible when it comes to putting that refund to good use: the majority (56 percent) plan to save it. What’s more, over a quarter of respondents (26 percent) plan to pay off debts. Just 18 percent plan to spend it.
We’ll be featuring more Millennial money mania later this month. Do they think they are more financially responsible than their friends? Do they follow a budget? Stay tuned!