REPORT: Less Than Half of Americans Surveyed Are Confident in Their Ability to File Their Taxes Correctly
AI is more trustworthy than a tax professional; Results from Invoice Home reveal Artificial Intelligence (AI) could be a solution for U.S. consumers tackling the filing system
February 4, 2025, AUSTIN – Invoice Home, a leading invoice generating software designed for the invoicing needs of small businesses, freelancers, and entrepreneurs worldwide, today released its first “U.S. Tax Filing” Survey, uncovering the current state of consumer tax filing for Americans in 2025 and the hurdles people are willing to put themselves through when it comes to filing annually. Conducted with third-party research firm Censuswide, data shows only 41% of Americans who file their own taxes are confident in how to file, while a large percentage still struggle with the process.
The process is less than self-explanatory
The U.S. Tax filing process can be intimidating. More than half (53%) of U.S. consumers who file their own taxes plan to file as soon as they receive a W-2, however, another 1 in 5 (21%) plan to file in April right before the deadline. Data shows that more than 1 in 10 (16%) respondents will rely on their tax return to cover cost-of-living expenses that month, with another 1 in 10 (11%) saying if they owe money to the government this season, they won’t be able to pay it.
For many Americans tackling the system, the process can be confusing to navigate. Respondents would rather do the following than file this year, because of a lack of confidence in filing correctly:
- 19% - Renew a driver's license at the DMV
- 15% - Take a driver's license online exam
- 12% - Give up non-essential spending for a month
- 12% - Take a high-school level math or history exam
- 9% - File a health insurance claim
The future of tax filing is digital
Consumers surveyed are seeking reliable and trustworthy resources to ease their frustration when it comes to filing income taxes. One option is leaning on Artificial Intelligence (AI). More than 2 in 5 (43%) of respondents would trust AI to file taxes this year over hiring a tax professional. Even older generations who grew up with a paper filing system are open to trusting AI. Of the 43% of respondents who would trust AI, 49% of Generation Z, 54% Millennials, 43% Gen X, 25% Baby Boomers and 18% The Silent Generation agree.
“Across generations, we’re seeing an even greater adoption of digitally native tools for financial processes,” said Petr Marek, Co-Founder and CEO at Invoice Home. “Consumers who file their own taxes truly rely on these resources to understand and navigate the system, and we expect this to grow even more in 2026, as data shows respondents will plan to set themselves up for success for next year’s taxes by investing in online digital tools/resources (16%) and accounting software (11%).”
This year, respondents will plan to file their taxes using third-party tools like TurboTax or H&R Block (39%), a licensed tax professional (24%), family member/friends (17%), digital software tools (16%) and IRS E-file tools (14%).
Methodology
The research was conducted by Censuswide, among a sample of 2000 US consumers who file their own taxes (Aged 18+). The data was collected between 02.01.2025 - 06.01.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
About Invoice Home
Founded in 2011, Invoice Home is an invoice generating platform, simplifying the invoicing needs of small businesses, freelancers, and entrepreneurs worldwide by offering 100 customizable, multi-lingual templates and online payment integrations, all in a unique and user-friendly interface.
Headquartered in Austin, Texas and trusted by 10 million customers in more than 150+ countries and territories, Invoice Home is the leading invoice generator for business professionals.
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Diffusion PR for Invoice Home