Survey finds majority of Americans see changes in 2024 personal finances

“It’s incredibly important for taxpayers to do a mid-year tax checkup and plan for the rest of the year, especially if they experience life changes or have a change to their personal finances. It’s also the best window of time to make strategic adjustments, especially for those unhappy with last years’ tax refund size or an IRS balance due at tax time,” said Mark Steber, Chief Tax Information Officer, Jackson Hewitt Tax Services. “According to our recent survey, we found the majority of people are experiencing financial changes that can make an impact to their taxes at tax filing time. Take the right measures now, so there are no surprises at tax time by either owing the IRS and state a bigger balance or receiving a smaller tax refund overall.”

According to Jackson Hewitt’s survey, the following relates to people’s personal finances thus far in 2024:

• 30 percent have had a change in their base income/salary
• 29 percent have donated to charitable organizations
• 27 percent have had to find new sources of income in order to make ends meet
• 23 percent have invested in traditional stocks or cryptocurrencies
• 9 percent have won money via gambling, sports betting, or the lottery
• 3 percent have collected unemployment income

“Taxpayers can flex more control over their finances by adjusting their withholdings on their W-4 on file with their employer throughout the year,” said Steber. “In fact, nearly 30 percent of recent survey respondents don’t know if they are withholding the right amount on their W-4, and an additional 30 percent of people don’t realize that they can adjust their tax withholdings at any time. In reality, you can work with your employer and adjust your withholdings, as often as you want, to ensure that your take-home pay best suits your personal financial situation.” 

“The same advice goes for the self-employed. Either full time or with part-time employment, it’s equally important to look at your tax situation to make sure you are properly paid to-date,” said Steber. “This is important for two reasons. First, it is the rule that if you are earning money from self-employment activity, you are required to pay federal income, state income, Social Security and Medicare taxes quarterly if you owe, not just at tax filing time. Secondly, and equally important, if you do not monitor your other self-employment income, corresponding taxes, and tax liabilities, it can have an unexpected and sizable impact on your regular income and tax outcome at tax time.”

How to do a mid-year tax checkup and plan?

• First, taxpayers should review the prior 2023 tax return with a Jackson Hewitt Tax Pro.
• Next, taxpayers should review current income and expenses, compare current-year life facts with the 2023 return, and discuss what can impact the remainder of 2024.
• Taxpayers should evaluate sources of earned income (for example: from traditional W-2 employment, side gigs, investments, etc.) and understand how much total money was made in the first half of the year, as well as what’s taxable.
• Then, taxpayers should think of notable personal changes from this year that have or will happen by December 31, 2024, including a change in dependents, employment status, new or different earnings and income, as well as marital status.
• With this information, taxpayers can calculate a mid-year tax estimate for the first half of the year, then double or annualize an estimate for the full year’s income, taxes due, and taxes paid in so far. Then, a projection can be made for what the end of year will look like for income, taxes and tax refund or balance of taxes due to the IRS.
• Finally, start now and organize all financial records, which will help during tax filing time.

If taxpayers aren’t happy with the estimated tax refund, or projected balance due, it’s the ideal time to take action – and Jackson Hewitt Tax Pros can assist clients with proposed adjustments and strategize for the best-case scenario and results.

“Doing a mid-year tax checkup and creating a plan for the remainder of the year, such as identifying tax breaks you can benefit from or how to make adjustments to qualify for a tax credit or deduction, can be helpful and is essential for starting and maintaining financial health,” said Steber. “This proactive approach does not have to be complex, complicated, nor time consuming, and helps prepare taxpayers now, rather than being surprised and stressed at tax time.”

For more information visit jacksonhewitt.com, and to schedule a mid-year tax checkup appointment at a Jackson Hewitt office visit jacksonhewitt.com/officelocator.

Jackson Hewitt Mid-Year Survey 2024

Q1: Would you rather have larger paychecks with less taxes withheld during the year or owe the IRS when you file your tax return?

• Larger paychecks: 87%
• Owe the IRS: 13%

Q2: Are you planning to do a mid-year income tax checkup?

• Yes, will do it myself: 26%
• Yes, meet with a Tax professional: 17%
• No: 57%

Q3: Do you think you are withholding the right amount of taxes on your W-4 in 2024?

• Yes: 71%
• No: 8%
• I don’t know: 21%

Q4: Did you know you can adjust the tax withholdings on your W-4 at any time?

• Yes: 70%
• No: 30%

Q5: When is the last time you updated your withholdings on your W-4?

• Within the last year: 31%
• It’s been over a year: 29%
• I never have, not since I started working with current employer: 21%
• The last time I got a raise: 4%
• After my last big life change (i.e. had a change in dependents/marital status, etc.): 16%

Q6: Have you, or will you by the end of the year, experience any life changes in 2024? (i.e. changed jobs, moved, got married/divorced, new baby/adopted a child, retired, started earning money for yourself, etc.)

• Yes: 33%
• No: 67%

Q7: What concerns you about your tax situation?

• I need to find professional tax help: 20%
• If I’m filing my own tax return correctly: 31%
• I can’t afford to pay the IRS and/or state if I owe taxes: 14%
• I’m not getting a big enough refund: 28%
• I’m paying too much in taxes: 29%
• If I am withholding the right amount of taxes on my W-4: 22%
• Getting in trouble with the IRS and/or state: 13%

Q8: What is causing you the most financial stress right now?

• Gas: 7%
• Groceries: 35%
• Rent/Mortgage: 28%
• Childcare: 2%
• Credit Card Debt: 13%
• Taxes: 14%

Q9: In 2024, which of the following relates to your personal finances?

• I’ve invested in traditional stocks or cryptocurrencies: 23%
• I’ve won money via gambling, sports betting, or the lottery: 9%
• I’ve donated to charitable organizations: 29%
• My base income/salary has changed: 30%
• I’ve collected unemployment income: 3%
• I’ve had to find new sources of income in order to make ends meet or feel more secure in my finances: 27%
• None of the above: 28%

Q10: Are you taking advantage of tax-saving opportunities, like having a Health Savings Account, contributing to an IRA or other retirement accounts, or other tax savings steps?

• Yes: 43%
• No: 57%

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About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. is an innovator in the tax industry with a mission to provide its hardworking clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead and stands behind its work with its Maximum Refund Guarantee and Lifetime Accuracy Guarantee® (restrictions apply, see Jackson Hewitt’s website for more details). Jackson Hewitt has more than 5,200 franchise and company-owned locations nationwide, including 2,700 in Walmart stores, making it easy and convenient for clients to file their taxes. For more information about products, services, or offers, or to locate a Jackson Hewitt office, visit jacksonhewitt.com or call (800) 234-1040. 

Jackson Hewitt Media Contact

media@jtax.com

Survey Methodology

The opt-in survey was commissioned by Jackson Hewitt between June 28 and July 3, 2024, among 1,000 American adults aged 18 and older, and conducted online by Dynata. Respondents of the survey were selected from those who volunteered to participate in online surveys. One thousand complete surveys were collected using the sample framework based on U.S. Census data for age, ethnicity, gender, region, and income.