Study Finds Nearly One in Three American Adults Will Pay Taxes By Check

Twenty-nine percent of American adults are still likely to mail in checks to pay their taxes owed to the government, a new study from ACI Worldwide and YouGov has found.

Close to one in four – 23 percent – of surveyed adults would choose electronic funds withdrawal, the study found. Bankcard payment options were less popular, the study found, with 12 percent indicating they would pay by debit card and 11 percent option for credit card payments.

Though checks stood out as a popular way to pay taxes, the study found, the check-paying cohort was anchored primarily by older Americans. Only 12 percent of millennials said they would pay by check, compared to 43 percent of Baby Boomers and 28 percent of Generation X respondents.

“Despite the continued evolution of payment technology, nearly a third of Americans opted to write out a check and physically mail it, which takes more effort than an electronic funds withdrawal, debit or credit card payments,” said Andrew Sajeski, leader, biller solutions, ACI Worldwide in a press release.

The preference for electronic payments was stronger when it came to tax refunds, however. Seventy-one percent of surveyed taxpayers said they would choose direct deposit for their refund, compared to 19 percent opting to receive a check in the mail.

The survey found that 40 percent of American taxpayers are most likely to file their taxes electronically. Among the generations, Generation X were most enthusiastic about electronic filing at 51 percent, followed by Millennials at 39 percent and Baby Boomers at 36 percent.

The survey was conducted by YouGov between March 12-13, 2019 via online panel. The total sample size was 1,270 U.S. adults. Click here to read more.

ACI Worldwide will be exhibiting on the show floor at TRANSACT, the world’s largest payments technology event April 30-May 2 at the Mandalay Bay in Las Vegas. TRANSACT, produced by ETA, provides 4,000 attendees with a robust exhibit hall with more than 200 exhibitors, extensive networking events, and forward-looking educational sessions on the groundbreaking technologies, trends and policies shaping the payments industry. To register, visit www.etatransact.com.