CNET Survey: 44% of applicants suffer from tax anxiety – Gen Z and Millennial Leadership
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Taxes are complicated. File your own tax returns, and even the most confident filer can cause anxiety.
Plus factors like filing multiple state returns, freelancing fees, rental property income or deciphering deductions, and suddenly you are searching for a question to make sure you complete the returns accurately.
This story is Tax 2025CNET for the best tax software, tax tips and everything else you need to submit your return and track your refund.
A new CNET study found that 44% of taxpayers have anxiety and fear of filing taxes. That number is higher among younger generations – Z Gen Gen 51% and 48% of millennials are worried about filing taxes. Common concerns include making mistakes, exposing their personal information to fraudsters, and owing the IRS more than they can burden them.
“While we all need to do our best to file a complete and accurate tax return, errors can occur,” said Jassen Bowman, an IRS-registered agent and tax expert. “The IRS has a powerful system that can catch errors with computer matching and they will inform you if something is encountered.”
Submitting taxes can be stressful, but getting a tax refund is a key point that most filers may expect. According to IRS data, nearly two-thirds of filers receive tax refunds every year. Most filers plan to use the money for bills or savings goals this year. CNET also found that 38% of filers plan to use their refunds to pay bills, debts, rents or mortgages to make ends meet.
Here is all about the latest survey we have found, and expert tips to help you get rid of stress.
Key Points
- 25% of tax filers are worried that they will make mistakes in tax returns.
- One-third of taxpayers led by Gen Z and Baby Boomers are unsure of their eligibility for free this year.
- The majority of the applicants surveyed (38%) plan to use their tax refunds to pay their bills or pay off their debts.
- Turbotax is the most popular method of tax filing (16%).
- Some filers seek tax advice from suspicious sources, with 6% using social media for guidance, and another 13% depending on AI chatbots. This number is the highest for Gen Z; 15% will turn to social platforms, while 13% will use AI chatbots like Chatgpt.
Taxpayers are afraid of making mistakes when returning
No one wants to be reviewed by the IRS, but it can happen. According to our survey, 25% of taxpayers are worried that they will make mistakes in their tax returns this year, committed by Generation Z filers (33%) and Millennials (27%). About five generations X-Files (22%) and baby boomers (20%) are also afraid to make mistakes in their tax returns.
Here is the full list of tax filers:
During the IRS review, errors on the tax return can be found. The audit is due to suspicious activity marked on your tax return. Think of them as a review of your financial books and tax forms, and it is not necessarily a prosecution of what you did wrong. In 2023, the IRS closed more than 5 million reviews, resulting in $31.9 billion in additional tax payments for Americans.
Receiving a letter from the IRS can be frightening, but Bowman doesn’t want to panic the filer when filling out their return. “There is no reason to beat yourself up for honest mistakes,” he said. “There are procedures that can resolve such situations.”
Whether you have a simple tax situation (W-2, student loan interest, bank interest on a high-yield savings account or a family member who wants to claim), or have other forms (dividends, unemployment, child expenses, health savings account), online tax software is intuitive and it can guide you through the tax filing process. All online tax services reviewed by CNET are guaranteed with maximum refund and tax accuracy. Online archiving software also gets better at catching real-time errors.
For more complex tax status or changes to file status, you may need to contact a certified tax professional. Most online tax software has the opportunity to connect with tax experts, but most people don’t guarantee that you will talk to an accountant.
“I always recommend that taxpayers understand their specific tax situation by asking questions to tax preparers,” said Jasmine Johnson, an accredited financial adviser and accountant.
Taxpayers do not forget tax advice
Survey participants showed willingness to exhaust all tax advice options. About a quarter of filers choose to sit down or arrange a call with a tax accountant – whether they intend to apply with an accountant or apply alone.
Others have turned to social media apps like Instagram and Tiktok for tax advice. While you can find useful information on these platforms, this is a roll of dice because not all shared tips are accurate. I often encounter videos from tax professionals that reveal inaccurate suggestions provided on Instagram and Tiktok.
“Social media may be a great place to find tax tips and suggestions, but that’s not the ultimate source of advice,” Johnson said. “I always recommend that taxpayers do their own research, consult professionals, and fully understand the tax impact before applying or sharing any suggestions.”
This year, many people are also leveraging AI to help their taxes: 7% of filers plan to use AI assistants like Gemini and Chatgpt to enhance their tax knowledge, and 5% plan to use AI Chatbots to integrate into tax services such as H&R Block’s AI Tax Assistant.
AI can be a great tool, but it is not perfect. Earlier this year, when I tested H&R Block’s AI Chatbot, it provided outdated tax information for IRS Form 1099-K. Always double-check the information the chatbot provides you with.
Many Americans don’t know if they can apply for free
One-third of filers told CNET they are eligible for free applications and plan to apply for taxes for free this year, while 13% said they are eligible for free submissions but still plan to pay.
But another 33% told CNET that they don’t know if they are eligible for a free tax application. Johnson said many taxpayers don’t understand all the free filing options, and confusing tax terms can make it difficult for many to understand whether they qualify.
“Terms like agi [adjusted gross income]deductions and points make people unsure what applies to them. ” she said.
Even with programs offered through the IRS, there are several ways to qualify for a free tax application. For example, the IRS free file allows anyone who earned less than $84,000 before tax last year to submit taxes for free. You may also be eligible for free submissions using IRS Direct File, a new product available in 25 states.
Most online tax software providers in 2025 also have free tiers that can be utilized. Due to the set limits set by each preparer, it can be tricky to find out which limits you are eligible.
About 37% of taxpayers are eligible for the TurboTax Free Edition, TurboTax said. H&R Block said 55% of customers in history are eligible for free filing. Both Taxslayer and Taxact have free filing options.
Then comes the cash app tax, and you get a free federal and state gain for free regardless of your tax situation. Freetaxusa also allows for free federal returns that can be exploited by almost anyone. I use this service to submit taxes this year.
If in doubt, Americans pay for taxes
Interestingly, 24% of the filers surveyed by CNET said they think they have to pay for the correct completion of the tax. In fact, Bowman says modern tax preparation software does a great job of guiding you through the entire process.
“Because our tax laws are so complicated, it’s really easy for ordinary people to become overwhelmed,” he said.
The highest option for filing taxes is Turbotax (16%), followed by 15% of filers who plan to file with accountants.
If you are facing a tax bill, you may be worried about leaving your money on the table unless you pay for guidance software or accountant expertise. Leverage deductions and credits you are eligible for, such as student loan interest, business expenses, or retirement contributions, to lower your tax bill.
One in six (15%) taxpayers in our survey admitted they were worried they would owe the IRS more than they would have this year.
“The balance due can be frightening,” Bowman said.
If you believe you are eligible for additional tax deductions and need to submit suggestions, please contact a certified public accountant.
Refund fees required for probation
With the increased cost of living due to inflation, many will use tax rebates to pay for the 2025 necessities.
Of those planning to file tax returns this year, 38% plan to make a living by paying current bills (20%), addressing debts (18%), paying later bills (9%), putting it into rent or mortgages (7%), or a combination of these.
Others will use the money to create a savings account (16%), establish an emergency fund (12%) or an investment target (12%).
What is less popular is the option of spending tax refunds on casual purchases. Only 7% said they would use an IRS refund to fund their vacation. There are even fewer plans to buy large retail purchases, such as new household appliances or new technologies, including smartphones, laptops or tablets.
You may be counting on annual tax returns to fund personal currency goals. However, if you receive a refund of more than $1,000, you may be paying too much tax on your IRS over the course of the year. Consider updating with employers on the W-4 so that more money is available to the bank account every month.
Methodology
CNET commissioned YouGov PLC to conduct the investigation. Unless otherwise stated, all numbers are from YouGov PLC. The total sample was 1,055 adults, of which 877 were planned to file tax returns. A field investigation was conducted between 18 and 19 February 2025. The survey was conducted online. These numbers have been weighted and represent all U.S. adults (ages over 18 years old).
The edited content on this page is based solely on objective, independent evaluations of our writers and is not affected by advertising or partnerships. No third party has yet to provide or entrust. However, we may receive compensation when you click on the link to the products or services provided by our partners.
