Gen Z is Stressing Over Tax Season
Filing taxes can be tricky, but there are convenient ways to do so.
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California; Hayward — A recent survey conducted by EY reveals that filing taxes has become a significant source of stress for the majority of Gen Z, with many admitting to tears or anticipating such emotional reactions. In contrast, only 38% of millennials reported experiencing a similar level of tax-related stress. The primary cause of distress among younger generations appears to be confusion surrounding the tax filing process.
The survey indicates that 62% of first-time tax filers are uncertain about when to expect essential documents such as W-2s and 1099s, while 45% of Gen Z and 36% of millennials are unsure about the tax filing deadlines. Erika Carney, product lead for Cash App Taxes, notes that younger filers, in particular, view tax filing as a complex and anxiety-inducing experience, according to CNET.
However, tax filing doesn't have to be overwhelming.
To alleviate stress, tax expert Dana Ronald, president of the Tax Crisis Institute, recommends starting with the basics and understanding which forms are necessary based on income, expenses, and individual circumstances. The IRS offers free resources, including online tools, publications, and workshops for taxpayers of all ages.
For those preferring a mobile approach, the survey found that 38% of respondents would rather file taxes on a mobile device than use a laptop or seek professional help. Online guides on the IRS website and resources from accredited professionals on social media, such as certified tax coach Duke Alexander Moore, can provide valuable advice.
Additionally, there are various free resources available online to assist in the tax filing process. The IRS Free File option allows individuals earning $79,000 or less in 2023 and filing a simple return to qualify for free filing. CNET's list of the best tax software for 2024, including TurboTax, H&R Block, Jackson Hewitt, Cash App Taxes, and TaxSlayer, offers convenient mobile apps for easier tax filing.
The survey also highlights that 46% of Gen Z is planning significant life events around their tax refund money. Despite the stress reported, there are accessible resources and tools to make the tax filing experience more manageable for younger generations and everyone else.
Noumaan Faiz, (he/him) is a journalist and entertainer from Hayward, CA who covers culture and entertainment.
Edited by Nykeya Woods