The Conference Board Consumer Internet Barometer Finds More Consumers Are Filing Taxes Online
Consumer Internet Barometer - Economics - The Conference Board
March 15, 2006
Consumer Internet Barometer
More consumers are filing their taxes online and using do-it-yourself tax software, The Conference Board reports today.
Approximately 37 percent of consumers intend to file their 2005 federal taxes online, up from less than 28 percent just two years ago. Some 62 percent of these consumers have been filing online for more than three years, while only 9 percent are first-time filers. "Do-it-yourself" software has become much more popular and will be used by nearly 40 percent of filers. Most filers prefer receiving their refunds by direct deposit. Among consumers who filed online last year, nearly three-quarters chose to receive their refund by direct deposit.
Fewer consumers are looking directly to the IRS website to file their taxes. The IRS does offer a "Free File" option for some taxpayers on its website as part of its E-file program, but fewer than 19 percent of online filers intend to use this service to file their taxes, down from nearly 24 percent in 2004.
The Consumer Internet Barometer is produced by The Conference Board and TNS, the world's largest custom research company, and covers 10,000 households.
"Once consumers file online, they tend to stay online," says Lynn Franco, Director of The Conference Board Consumer Research Center. "The number of people filing their federal taxes online continues to grow with do-it-yourself software paving the way. This year, nearly an equal proportion of consumers will file online using tax software as will file online using a professional service."
The number-one reason cited for not filing online is that the consumer does not do his/her own taxes. In fact, the number of filers not doing their own taxes has risen from less than 30 percent in 2004 to 34 percent today. The second most popular reason for not filing online is that filers don't want their personal information on the Internet. However, the proportion of online consumers citing security concerns as a deterrent has abated over the past two years.
More Filers Are Using 'Do-It-Yourself' Tax Software
Among consumers intending to file their federal taxes online, about 40 percent intend to use a professional service, with women slightly more likely than men to seek assistance. The use of do-it-yourself tax software has made tremendous inroads in a short span of time. In 2004, less than 31 percent of male filers and only 28 percent of females used do-it-yourself tax software. Today, the software will be used by 38 percent of all male filers and 37 percent of females.
Among online tax filers last year, more than 72 percent chose to receive their refund via direct deposit and a mere 16 percent requested a check. Says Franco: "The turnaround time offered by direct deposit clearly makes it the preferred choice of online filers."
Consumers Still Uncomfortable With Online Banking
Nearly 52 percent of online consumers are extremely concerned about security when banking online, but the level has fallen from 62 percent in 2004.
At the other end of the anxiety barometer is the filing of federal taxes online. Only 43 percent of web surfers feel the same degree of apprehension about filing their federal taxes online. But more people are getting comfortable with this process. Just two years ago, 52 percent of online consumers were extremely concerned about filing online.
Women are generally more concerned than men about security when conducting financial transactions online. But the gender gap has narrowed and both sexes are less concerned today than they were in 2004.
"It is not surprising that we still see high levels of wariness about the security of banking and filing taxes online," says David Stark, North America Privacy Officer of TNS.
"Many Americans are alarmed by Internet scams and media reports of data security breaches. The easing up in concern levels is encouraging, however, as it suggests that consumers are not only more familiar with banking and filing taxes online, but also increasingly aware of how to protect themselves on the Web," Stark added.
About This Survey:
The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. The latest survey was conducted during the first quarter of 2006. For more information, please email f.tortorici@conference-board.org or lynn.franco@conference-board.org.
About TNS
TNS, a market information group, is the world's largest custom research company. TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organizations.
In the U.S., TNS combines specialist sector knowledge with expertise in the areas of new product development, market understanding, brand and advertising research and stakeholder management to bring our clients up-to-the minute, internationally consistent information. Additionally, we provide the industry's most trusted consumer access panel. We think differently to help our clients build a competitive advantage, making TNS the sixth sense of business. www.tns-global.com.
For further information contact:
Lynn Franco
at (1) 212 339 0344
lynn.franco@conference-board.org
March 16, 2006 at 12:35 AM in Security | Permalink
| TrackBack (39)
| Top of page
| Blog Home
