Half of US Tax Filers Need Professional Help

Though do-it-yourself software and internet services that assist in the preparation of income tax returns are widely available, only 20% of US adults who file federal income tax returns use such applications to do their taxes on their own, according to (pdf) a study from  Mediamark Research & Intelligence (MRI).

In contrast, fully 50% of adults report that they use professional help - such as on-site specialists like H&R Block, a CPA or a tax professional - to prepare their returns.

Another 13% file their taxes themselves, but do not use computer-based applications, preferring to prepare their personal federal returns personally and manually.  Men are more likely than women to do this, MRI said.

Gen X and Wealthy Rely Most on Computer

Of those adults who file federal tax returns, Generation X (born between 1965 and 1976) are 21% more likely to file personally, using a computer or online/internet tax preparation program or service.

Those with higher incomes are also more likely to do-it-themselves online, MRI found. Filers living in households with a greater than $100K annual income are 26% more likely to use these tools for tax preparation.
Pre-Boomers Seek Most Assistance

At the other end of the age spectrum, Pre Boomers - those born before 1946 - are the most likely to use professional help; they are 11% more likely than all US adult tax filers to seek assistance in preparing federal tax returns.

“Half  of all adults who file personal federal taxes feel the need to pay for professional assistance despite the wide availability of software programs,” said Anne Marie Kelly, SVP, Marketing and Strategic Planning, MRI. “This probably speaks to the complexity of our tax code and the anxiety many taxpayers feel about tackling the forms on their own.”