The U.S. tax system is notoriously difficult to try and figure out, which is why there are plenty of AI-powered options on the market to help taxpayers navigate it all. Even so, new data reveals just how confused some taxpayers are about what they can and cannot do to reduce their tax liability — and for younger Americans, some of the data is a bit shocking.
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For example, nearly one in five people in the Gen Z cohort mistakenly believe they can "write off anything as a business expense," according to data collected by Talker Research on behalf of TurboTax, which surveyed 4,000 Americans planning to file. investigated. File your taxes this year. It’s unclear where the 17% of Gen Z who believe they can “log off everything” got their idea (seinfeld Replay, maybe? ), but they need to have a business to claim the business deduction.
Additionally, 20% of Gen Z respondents believe students do not need to file a tax return, and another 13% believe they do not need to pay taxes if they pay in cash – two statistics that may hold answers across the country The CPAs were very excited.
"Filing taxes can be so overwhelming that 20 percent would rather face Black Friday crowds or serve on a jury," Lisa Greene-Lewis, CPA and spokesperson for TurboTax, said in a statement accompanying the survey results.
But it's not just Gen Z who has some misconceptions about their taxes. Other surprising statistics from the data set include that about a quarter of Millennials and Gen If your income is less than the IRS's income requirements, you won't be able to get a refund.
With so many misconceptions and false beliefs about taxes, it’s no wonder that many tax preparation companies are investing resources in trying to make the process smoother. That includes TurboTax, which again bolstered the latest survey data, after the company experimented with "AI-powered express lanes" over the past year and even made it relatively easy for some taxpayers to file their tax returns on their smartphones.
Other companies have followed suit or launched competing services, such as H&R Block, which also has a tool called AI Tax Assist to help taxpayers fill out and file tax returns. The problem with most of these services is that they usually only work for people with relatively simple returns—people with just one job or source of income and no or limited itemized deductions.