Add to del.icio.us     Digg this

April 7, 2007

According to the latest Conference Board survey, as Internet security concerns continue to drop, more e-Tax returns are being filed by more Internet users every year. In 2007, only 43 percent of Web users are extremely concerned about Internet security risks in filing their taxes online, down from 52 percent three years ago.

Approximately 65 percent of American taxpayers have filed online for three or more consecutive years, and nearly fifty percent of those have filed utilizing the Internet for over five years.

In 2007, about forty percent say they will file their 2006 federal taxes online, up from 28 percent three years ago.

Overall, direct deposit of refunds is a big incentive for filing online.

Lynn Franco of the Conference Board says "whether using professional tax services or do-it-yourself software, electronic filing continues to grow year after year. Increasingly, direct deposit is the preferred refund method."

Franco added "this year's ability to split refunds among up to three accounts is yet another choice that should broaden the appeal of electronic filing."

Even though it's free, use of the IRS' online filing system has actually decreased since 2007, not because people are skeptical about "letting the IRS do their taxes," but because the number of people eligible to use the system has dropped.

About 39 percent of consumers wishing to file their federal taxes online say they will use a professional tax service, with women more likely than men to seek assistance.

Overall, most U.S. taxpayers who still don't file online say that they don't do their own taxes or they are concerned about having personal information on the Internet.

Add to del.icio.us     Digg this

Source: eMarketer