Press Releases

The TurboTax survey revealed that taxpayers would be more generous in donating their tax dollars to Uncle Sam if they could choose the federal program of their choice. And, young and old taxpayers alike, voiced similar preferences on where they'd like to see their tax dollars go. Only two percent of those polled said they would donate one dollar of their tax bill to funding the next presidential election campaign, the sole option on today's tax returns. More popular choices included:

• Education (36%)
• Healthcare for the needy (32%)
• Drug prevention and rehabilitation programs (10%)
• Anti-crime initiatives (4%)
• Advancement of technology (3%)

A generation gap was evident, however, when Americans were asked to predict their tax preparation and filing habits in the future. While one in four Americans ages 25-34 predict they will embrace computer software or the World Wide Web to prepare and file their taxes in 2000, only a scant eight percent of senior citizens say the same. And, although new technology may make tax preparation easier, it is not expected to replace the human element: over half (52%) of all respondents still plan to turn to an accountant to prepare their federal taxes in 2000.

Furthermore, the TurboTax survey revealed a stronger willingness of young adults to use a credit card to pay their tax balance, an option the IRS is allowing for the first time in 1999. Nearly one in 10 25-34 year-olds prefer to pay their tax balance by credit card, more than double the percentage of adults 35 and over (4%) who say the same. Still, the majority of Americans prefer to pay their taxes using the traditional personal check (76%), while 12 percent prefer to use a money order.

"What we're beginning to see is the evolution of today's youth toward 'digitizing' their taxes, while the older generation prefers to stick to the tried-and-true methods," said Larry Wolfe, senior vice president of Intuit's tax division. "We predict that as taxpayers of all ages become more educated about the new tax preparation and payment options - Web or software-based preparation, electronic filing and credit card payments - we will see a huge increase in the acceptance of new tools to assist with tax preparation, as the benefits of saving time and convenience are realized. We believe TurboTax is leading the way toward this growth."

In fact, convenience is foremost in the mind of taxpayers when it comes to preparing their income tax returns. More than two in five taxpayers (41%) cite "getting it done quickly and without hassle" as the most important virtue when preparing their taxes, aside from accuracy. Other top concerns highlighted by the Intuit survey are "taking all possible deductions" (33%) and "avoiding an audit" (19%).

When asked about other new tax options this year, 10 percent of taxpayers said they plan to take advantage of the new Roth IRAs, while six percent have already done so. A Roth IRA, unlike a traditional IRA, is a form of retirement savings whereas all earnings are tax-free when a taxpayer or their beneficiary withdraws the funds. Not surprisingly, this figure rose proportionately with income - with 19 percent of respondents in the $50K+ income bracket planning to set up a Roth IRA, versus eight percent of those with an income of $15K or less. More than one in 10 taxpayers (12%) were unaware of the new Roth IRA option, or said it doesn't apply to them. The results of the survey can be found on Quicken.com's already extensive Tax Channel, offering the latest in tax-related tools for individuals and small businesses. Other features include:

• Preparation and filing of taxes via Intuit's WebTurboTax;
• Expert tax help for individuals and small businesses;
• Advice on tax assistance, record keeping, filing for an extension and itemization;
• Current tax year federal and state forms, plus IRS publications; and
• Forums on tax code changes, avoiding and surviving an audit, capital gains, preparation and planning and tax shelters.