US taxpayers think filing returns online is risky -- but they do it anyway

Thanks to the COVID-19 pandemic and extended tax filing deadline for 2020 its likely that people will be submitting their returns over a longer period this year.

New research from information security company Shred-it shows that most Americans file their tax returns online, even though many believe this puts them at greater risk of fraud.

Some 39 percent of men and 34 percent of women think filing taxes online with tax preparation software puts them at the greatest risk of becoming a victim of tax fraud or tax identity theft, but despite this over 50 percent of both sexes plan to do so.

There are some interesting age variations, two in five millennials (44 percent) think filing taxes online with tax preparation software puts them at the greatest risk of becoming a victim of tax fraud or tax identity theft, compared to only 33 percent of generation Zs and 29 percent of baby boomers who say the same.

Other methods are seen as risky by far fewer, gen Zs (27 percent), baby boomers (25 percent) and millennials (24 percent) think that filing with a friend or family member puts them at the greatest risk, while only 10 percent of gen Zs and millennials and just seven percent of baby boomers think filing taxes with a certified tax preparer puts them at the greatest risk.

Overall just over 35 percent of people are worried about falling victim to fraud during the tax season, with more men (42 percent) being concerned than women (30 percent). However, when it comes to actual victims only eight percent of men and seven percent of women say they have been a victim of tax fraud or tax identity theft.

You can find out more and get the full report from the Shred-it blog.

Photo credit: Stuart Miles / Shutterstock