With Tax Day looming and 44 million Americans expecting to pay this year’s taxes late due to the COVID-19 pandemic, WalletHub has released its 2022 Taxpayer Survey. Also recently released was WalletHub’s yearly report on the States with the Highest and Lowest Tax Rates in order to help people better understand this confusing time of year.
Tax Rates in California (1=Lowest; 25=Avg.)
11th – Overall Effective State & Local Tax Rate
13th – Income Tax
16th – Real-Estate Tax
27th – Vehicle Property Tax
33rd – Sales & Excise Taxes
2022 Taxpayer Survey
72 percent of Americans think the government should have provided more tax relief due to COVID-19.
81 percent of people say the government does not spend their tax dollars wisely.
Half of people would move to a different state to avoid taxes.
48 percent of Americans think that their neighbors cheat on their taxes.
66 percent of people think their current tax rate is too high.
With Analyst Jill Gonzalez
Q: Will the COVID-19 pandemic affect whether Americans are able to pay their taxes on time this year?
A: The COVID-19 pandemic will contribute to some Americans not paying their taxes on time this year. According to a new WalletHub survey, 44 million Americans expect that they will pay their taxes late due to the pandemic. People who are unable to pay their taxes should still file a return by the April 18 deadline no matter what. Then, they have a few options to consider, such as waiting for a bill and paying a small late fee or applying for an extension. It may also be possible to set up an installment agreement with the IRS to pay the tax bill off over up to 72 months.
Why do so many Americans feel the government does not spend their taxes wisely?
There are many reasons why around 208 million Americans believe the government does not spend their tax dollars wisely, according to WalletHub’s latest survey, but some of the biggest factors are a disconnect between how much we pay and the benefits we get in return, a general lack of trust in politicians, and the truthful perception that the private sector invests more efficiently than the government. Americans don’t like to part with their hard-earned money, especially when they often hear about billions of dollars in waste, fraud and abuse. When that’s the message that dominates the airwaves, it’s easy for people to come to the conclusion that that the government isn’t handling their taxes wisely.
What should taxpayers be worried about on Tax Day?
The biggest things that Americans fear on Tax Day are getting audited and not having enough money, each of which gets around 27 percent of the vote. In third place is a fear of making math errors. People’s biggest concern should be having enough money to pay what they owe, as trying to come up with additional funds on short notice could be hard for a lot of people during the COVID-19 pandemic. Avoiding math errors is easier if you start completing your tax return early and give yourself enough time to review it thoroughly for mistakes. There are plenty of free tax-prep resources that can help you ensure that the math is correct, too.