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Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

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SuccessTaxes

Americans have the ‘tax scaries’—but good news is waiting as the average refund goes up 7.5%

Preston Fore
By
Preston Fore
Preston Fore
Success Reporter
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Preston Fore
By
Preston Fore
Preston Fore
Success Reporter
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March 5, 2025, 11:51 AM ET
Young businesswoman stands in a kitchen looking stressed while looking at scattered papers
Tax season brings 1 in 3 Americans to tears, but with IRS data indicating above-average refunds, the stress might be worth it.Getty Images
  • Tax season is so stressful for Americans that it brings them to tears, but with refund amounts higher than last year, the hassle can be worth it.

Tax season is well underway, but for many Americans—especially Gen Zers—this time of the year brings unfounded stress and anxiety that often results in tears. 

Nearly 1 in 3 taxpayers say the thought of filing their taxes makes them want to cry, according to research from Intuit Credit Karma. That jumps to 40% among Gen Zers and self-employed filers. And the stress is so palpable that Gen Zers would rather give up a paycheck (23%) or take a vow of celibacy for one year (16%) than have to file their tax returns.

While not many will argue against the fact that filing taxes can be complicated, the reward on the other side could be sizable. According to the latest IRS data, the average refund amount this year is $3,453—that’s up 7.5% compared to this time last tax season.

“For many American taxpayers, (tax season is) a highly anticipated time when they receive their biggest windfall of the year, which they rely on to make ends meet. For others, it drums up stress and dread due to having more complicated tax situations, fear they will make mistakes when filing, or wanting to prolong facing a tax bill they may not be able to afford,” Courtney Alev, consumer financial advocate at Credit Karma said in a press release.

Tax anxiety can be a self-inflicted burden—and it’s weighing heavily on Gen Z

The deadline for filing taxes is April 15 each year, but many Americans wait until the very last minute. Last year, about 40 to 50 million Americans filed their taxes in the waning weeks of tax season. 

For those with simple tax situations, procrastinating may not be the end of the world, but if you run into an issue, it may be next to impossible to seek help from a tax professional—increasing the possibility of error and almost guaranteeing additional stress. 

Data from the IRS suggests Americans haven’t learned their lesson this year, either. Compared to this time in 2024, about 4% fewer tax returns have been received from the IRS. 

And despite headwinds in recent years to make the process easier and accessible, like through online filing, many Gen Zers are overly stressed about making a mistake—a trend that has haunted the generation following the pandemic.  

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    Nearly one in four say they wait until the last minute to file to avoid knowing how much tax they owe or because they think waiting will decrease their chances of being audited. A similar number are worried about falling victim to fraud or scams. 

    The IRS typically only audits those making less than $25,000 or more than $500,000—though audit rates have dropped among all income levels, according to the U.S. Government Accountability Office.

    However, when it comes to the IRS, waiting until the last minute could be especially bad this year, with Elon Musk’s Department of Government Efficiency (DOGE) having its sights set on the agency. According to the Associated Press, the IRS is preparing for a workforce reduction of upwards of 45,000 people—half its current size. John Koskinen, a former IRS commissioner, told AP that such a reduction in force would render the agency “dysfunctional.”

    The IRS says receiving a tax refund typically takes about three weeks, but filing early is the best way to get your refund as early as possible—and avoid any last-minute snafus. Most Americans can file their taxes for free using the IRS’s Free File program, and most popular tax software like TurboTax and H&R Block will walk you through the filing process step by step. 

    “Whether you’re expecting a refund this year or you think you might owe money, my number one tip is to make a plan and leverage the plethora of online resources and tools that can help you do things like estimate how much you might owe or receive, as well as ways to access your refund early, at no cost,” Alev concluded.

    At the Fortune Workplace Innovation Summit, Fortune 500 leaders will convene to explore the defining questions shaping the workforce of the future—delivering bold ideas, powerful connections, and actionable insights for building resilient organizations for the decade ahead. Join Fortune May 19–20 in Atlanta. Register now.
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    Preston Fore
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    Preston Fore is a reporter on Fortune's Success team.

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