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Millennials fear tax filing more than do older taxpayers

February 19, 2016

Millennials are relishing their influence in the current presidential campaign, especially on the Democratic side where they're helping make the nomination race very close.

But when it comes to taxes, this younger generation apparently is not nearly as confident.

Worried young man

A recent survey by NerdWallet and Harris Poll found that millennials fear tax season more than other tax-paying age group.

Fear of filing mistakes: The reason for the dread? Potential tax mistakes.

Around 80 percent of the young adult taxpayers told pollsters that making an error on their 1040s was a major filing concern. That's understandable. Making a tax mistake can be costly.

But only 60 percent of taxpayers age 55 and older shared that fear. I guess experience does count at tax time. That, or all us older filers are just used to making and correcting mistakes, on our taxes and elsewhere.

Paper or online surprise: One thing that's helped millions of taxpayers reduce their filing mistakes is tax preparation software.

And the survey did find that using tax software was the most popular method of filing taxes last year across all age groups.

But according to the poll, many millennials prefer to go old-school at tax time.

That's right. The generation that seems to rely on digital devices for almost everything prefers using paper to fulfill filing responsibilities at a higher rate than do older taxpayers, according to the survey, which was, yes, conducted online.

Filers in the 18- to 34-year-old age group report a higher rate of mailing paper tax returns, 17 percent versus 8 percent among taxpayers ages 35 and older.

Take that all y'all who've ever questioned old dogs learning new tax tricks.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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