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Report Finds 1 in 4 Americans Don’t Feel Prepared to File Taxes in 2024
Tax season is here and IPX1031’s 5th annual Tax Procrastinators report identifies the top states that delay filing their taxes and provides insights into filing habits among Americans. In the 2024 Tax Procrastinators report, you’ll find that 1 in 4 Americans don’t feel prepared to file their taxes and 29% admit to procrastinating.
Biggest Procrastinators by State 2024
While tax season begins on January 29, not everyone will be filing then. By analyzing Google search data related to the tax filing deadline, we were able to determine the biggest tax procrastinators by state. For the second year in a row, Wyoming tops the list as the biggest procrastinators nationwide. Coming in second is Vermont followed by Alaska, North Dakota, and Delaware. This is the fourth year in a row that Alaska has remained in the top five. Similar to last year’s 2023 Tax Procrastinators report, North Dakota and Vermont landed in the top 5. Rounding out the top 10 in 2024 is South Dakota, Rhode Island, Montana, Hawaii, and Maine.
When it comes to the states procrastinating the least, Pennsylvania takes the top spot. Other states that don’t put off filing their taxes include New Jersey, Ohio, Wisconsin, and California.
U.S. Cities With The Most Tax Procrastinators 2024
Aside from the states home to the biggest tax procrastinators, we also analyzed Google search data for the 30 largest cities in the nation. Holding on to the #1 spot for the second year among cities most likely to procrastinate doing their taxes, is Baltimore. Denver came in number 2 followed by Boston, Seattle, and Las Vegas.
The cities least likely to procrastinate doing their taxes have remained the same since last year: New York City and Los Angeles.
When is Tax Day 2024?
Tax Day 2024 is April 15. However, our survey of 1,000 Americans found 28% don’t know when the tax filing deadline is this year. In fact, 1 in 5 think Tax Day is on April 18.
There are several reasons why Americans procrastinate filing their taxes. Topping the list is that the process is too complicated and stressful. Other reasons why many put off filing their taxes is because it’s too time consuming, they want to make sure it’s correct, or they’re worried they’ll owe money.
The majority of Americans say they plan on filing their taxes in February or March, while 19% will file in April or later. Additionally, 8% plan on filing for an extension.
Tax Refund Expectations in 2024
According to the Internal Revenue Service, the average tax refund amount in 2023 was $2,903. In 2024, Americans expect the average refund to be $2,552. Compared to 2023, 30% expect to get less of a refund this year, while 21% expect more, and 49% think they will get around the same amount.
When it comes to how Americans plan to spend their tax refunds, the top answer doesn’t have to do with spending at all, as many will try to save the refund. Others will use the money to pay off debt, invest, buy groceries, or pay their rent/mortgage.
More than 1 in 3 (36%) Americans file jointly, while 62% file single, and 2% as dependents. As for how Americans file their taxes, 37% file on their own, and 63% use a service or an accountant. Among business owners, 1 in 3 struggle with filing taxes for the business. Among investment property owners, 37% struggle with filing taxes for their properties.
If you are interested in deferring your taxes on investment real estate, consider a 1031 Tax Deferred Exchange. You can use our Capital Gain Estimator or learn more about how a 1031 Exchange can help preserve and grow your assets when selling and buying investment properties.
Take a look at our previous Tax Procrastinator Reports:
Methodology
In January 2024, we conducted a survey of 1,005 people from around the U.S. Among respondents, 49% identified as male and 49% as female. Respondents aged in range from 18-77 with an average age of 41.
To rank the states and cities, we analyzed 418 Google search terms relating to the tax filing deadline from January-September 2023. We took the average number of monthly searches for each state and city and calculated the searches per 100,000 residents.
For media inquiries, contact media@digitalthirdcoast.net
Fair Use
When using this data and research, please attribute by linking to this study and citing IPX1031.
Read more:
1031 Information Exchangers Should Know When Filing Your 2023 Taxes in 2024
Tax Day 2023: America’s Biggest Procrastinators
Tax Day 2022: America’s Biggest Procrastinators
Tax Day 2021: America’s Biggest Procrastinators
Tax Day 2020: America’s Biggest Procrastinators
1031 Exchange and Defer? Or Sell and Pay Taxes?
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