During tax season, millennials become surprisingly skittish.
A survey from NerdWallet found that 80 percent of millennial taxpayers worry about preparing their taxes and the possibility of making a mistake, paying too much, or not getting the full return they deserve.
If they have a question, they don’t ask the IRS or a tax professional – they ask a friend or family member.
About 36 percent of millennials used a tax software program to file their taxes, slightly above average. Millennials, though, were also more likely than older taxpayers to use paper. About 17 percent of them mailed in a traditional tax return, compared with 8 percent of taxpayers age 35 and older.
Millennials aren’t the only ones who fear making a mistake. NerdWallet found that 69 percent of taxpayers were concerned about making a mistake during their tax preparation. The power of the IRS, and the convoluted and confusing tax code, makes people paranoid about what could happen if they make a mistake.
A tax refund for millennials is good news for their future. Of taxpayers expecting a refund, 54 percent say they’ll invest it or save it, higher than the 37 percent who received a refund last year. Whether they will actually save the refund, however, is an open question.
“The response shows how we are often torn between what we want to do with our income tax refund versus what we feel we should do,” Liz Weston, a NerdWallet columnist, said.
With any luck, millennial paranoia will lead to an awareness of how much they pay in taxes and prompt filing to avoid any late penalties.
