Here's How Most Americans Are Filing Their Taxes in 2024

Tax season doesn't have to be stressful and time-consuming. With tax software and other affordable tax filing options, many Americans can file taxes more quickly than ever before. A new survey from advertising technology company LoopMe shows interesting insights about how Americans are filing taxes in 2024, and what it might mean for the future of taxes.

Let's look at a few findings from the LoopMe 2024 Consumer Snapshot: Tax Season Insights.

More Americans are filing taxes early in 2024

April 15 is the famous "Tax Day" deadline to file your federal income tax return, but that doesn't mean you have to wait until Tax Day. Filing your taxes early can help you get your refund faster. And even if you end up owing money to the IRS, it often feels good to know that your taxes are done.

The LoopMe survey (taken in January 2024) found that most Americans plan to file their taxes early.

• 49% of people aged 35–64 said they were going to file their taxes "very early" (Jan. 1–March 15), and 27% said they would file "early" (March 16–April 14).
• Among younger taxpayers ages 18–34, 34% were planning to file taxes "very early" and 30% said "early."
• Only 12% of taxpayers ages 35–64, and 14% of taxpayers ages 18–34, said they were waiting until Tax Day (April 15) to file taxes exactly on time.

If you're struggling to complete your tax return by April 15, it's not too late. You can file for a six-month filing deadline extension with the IRS. But try to pay any tax that you might owe by April 15, or else you will get hit with extra tax penalties.

Most Americans do not use an accountant to file taxes

Professional tax help can be beneficial for small business owners and people with higher incomes or complex tax situations. But many Americans do not hire an accountant or CPA to file their taxes. The LoopMe survey found:

• 42% of Americans self-file their taxes with an e-file service
• 25% of Americans use an assisted service company to file taxes
• 34% of Americans will file taxes through a CPA/accountant

The best tax software makes it easier than ever for most people to file taxes, often using a simple, interactive online questionnaire. You don't have to fumble around with piles of paperwork and old receipts; tax software can help you understand the big picture of your tax return and maximize your tax refund.

The IRS provides a few options to file your taxes for free, if your income is low enough to qualify. In 2024, there is a new test program for IRS Direct File, a new option for some taxpayers in 12 states to file federal taxes for free directly with the IRS.

74% of Americans are happy with their tax filing service

The LoopMe survey found that most Americans are happy to keep using their current tax software or tax filing service. In fact, 74% of taxpayers told LoopMe that they chose their tax-filing service because they used it last year and were satisfied. However, nearly half of taxpayers told LoopMe that they were open to switching to a lower-cost tax service.

Sometimes it's helpful to keep using the same tax software or tax-filing service year after year, because your previous tax data is stored in one place. This can help you avoid errors and save time by not having to re-enter numbers. Most people's tax brackets don't change dramatically from one year to the next. So unless you've had some big changes in your personal finances, staying loyal to your tax service can help you save time and money.

But if you're not happy with how much your tax software or tax-filing service costs, or if you're not having a good experience with filing taxes, you might want to shop around for a better option.

Bottom line

Tax Day is April 15, but it's not a bad idea to file taxes early if you have all your tax forms and details ready to go. If you need extra time, you can get a six-month filing deadline extension from the IRS. Most Americans are filing taxes early so they can get tax refunds faster, and there is a wide range of low-cost or free tax software to make this happen.