Here Are the 3 Biggest Fears That Americans Have About Filing Taxes

Tax season can be a time of great trepidation for Americans, especially if you owe money to the IRS. Filing taxes can sometimes feel intimidating. No one wants to get hit with an unexpected tax bill, especially if you had big plans for a tax refund.

A new survey from Trustpilot conducted by Attest asked Americans about their biggest fears when filing taxes in 2024. Let's look at a few reasons why Americans are afraid to file taxes, and how you can overcome your tax stress.

1. Not knowing how to file taxes correctly

According to the Trustpilot/Attest tax season survey, the biggest reasons why many Americans have not filed taxes are related to not knowing how, or not having confidence in filing correctly:

• 13% of Americans said they're "not confident" in filing taxes
• 8% don't know where to find the resources to file taxes accurately

Did you know: If you need help filing your taxes, the IRS can connect you to free volunteer tax help in your local area. There are two official IRS programs, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). You don't have to go it alone. Free tax help is available through these programs for seniors, lower-income taxpayers, people with disabilities, and people who have limited English-speaking ability.

2. Owing money to the IRS that they can't afford to pay

If you have to pay extra taxes on April 15, this can be an unpleasant surprise. Especially during times of high prices and expensive groceries, some Americans worry that an extra tax bill could make it hard for them to afford household necessities.

Among the Americans who have not yet filed taxes, the Trustpilot survey found:

• 12% worry that if they owe extra taxes, they won't be able to afford it
• 7% worry that if they owe extra taxes, they won't be able to afford household items that they need

Did you know: In case you do end up owing taxes on April 15 and can't afford to pay, the IRS offers payment plans. You can set up a short-term or long-term payment plan with the IRS to pay off your tax debt -- but you will have to pay interest and fees based on the amount of tax you owe and the duration of your payment schedule.

Another option to pay off your tax debt is to ask the IRS for an "offer in compromise." This lets you settle your tax debt for less than you owe. But you have to apply and be approved for an offer in compromise. The IRS will consider your application based on your income, amount of tax owed, and how much financial hardship you are experiencing from the tax debt.

3. Not getting a big enough tax refund

Even if you don't owe extra taxes on April 15, many Americans have big plans for what they hope will be big tax refunds. The average 2024 tax refund (as of March 29) is $3,050; this can be a significant windfall for many people. A sudden influx of "free money" can help you pay off debt, make a big purchase, or invest for the future.

Unfortunately, some Americans are worried that their tax refund won't be big enough. According to the Trustpilot survey, here are the biggest personal finance impacts that Americans said will happen to them if they don't get a sizable tax refund:

• There would be an impact on their other purchase decisions (45% of respondents)
• Won't be able to afford household items such as groceries (21%)
• Would consider delaying bill payments toward cost-of-living expenses (20%)
• Putting off medical/healthcare appointments (15%)
• Would consider delaying loan payments (11%)

Did you know: In case you get a surprise tax bill in 2024, you can try to correct the situation for next time. The best tax software can help you understand why your tax bill is the amount that it is, and help you plan ahead for next year. You might need to adjust your W-4 withholdings at work, so that more tax gets withheld from your paycheck.

Bottom line

Tax season doesn't have to be scary. If you qualify based on income, you can use free tax software or get professional tax help from IRS volunteer programs. Getting an unexpected tax bill can be discouraging, but you have options to set up a payment plan with the IRS, or even ask to settle your tax debt in case you're having financial trouble. You shouldn't have to go without medical care or groceries because of a tax bill. Apply for IRS Free File or other tax help if you qualify, and look for ways to plan ahead for next year.