MasterCard Tax Survey Slideshare

Overview1. Methodology2. State of the Filing Season3. Complexity of the Tax Process4. Tax Time Goes Electronic5. Refunds Take a Practical Tone 2

Methodology • MasterCard recently commissioned a Harris Poll® Interactive QuickQuery® survey of 2,211 U.S. adults aged 18 years and older examining consumer attitudes and behaviors around taxes. • The survey was conducted online from February 8, 2012 through February 10, 2012, and results were weighted to reflect the composition of the U.S. adult population. • This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. 3

State of the Filing Season • Taxpayers are on top of their tax game this year. – As of early February, just days after W2s had arrived, more than one- quarter (26%) of surveyed taxpayers had already filed their taxes. • Taxpayers who opt for electronic payment/refund options file taxes earlier. – Individuals planning to pay their taxes by debit card (33%) are more likely to have filed early than those choosing paper options (18%). – Individuals planning to receive their refund on a prepaid card (42%) or by direct deposit to a bank account (28%) are more likely to have filed early than those choosing a paper check (21%). 4Source: Proprietary MasterCard survey (February 8 – 10, 2012)

State of the Filing Season • Most Americans will take the middle ground. – 56% of taxpayers will file their taxes sometime in February or March. • But some will procrastinate until the last minute. – 8% of taxpayers will file their taxes in April, but before Tax Day (April 17, 2012). Those ages 55+ (11%) are more than twice as likely than those under 44 (5%) to wait until April. – 2% will file their taxes on Tax Day. Men (3%) are twice as likely to wait until Tax Day than women (1%). 5Source: Proprietary MasterCard survey (February 8 – 10, 2012)

Consumers Say Tax Process Too Complex • 83% of taxpayers wish taxes could be easier, faster and more convenient. • 13% of taxpayers have considered not filing their taxes at all because the process is too complicated. • To save time, 17% of taxpayers would risk getting audited by guessing on some numbers on their return. • Taxes take so long to prepare that nearly 25% of those surveyed say they actually spend more time filing than they spend with their family during the week they file. Even so, more than half still plan to prepare their taxes by themselves – without the help of a tax preparer. 6Source: Proprietary MasterCard survey (February 8 – 10, 2012)

Consumers Say Tax Process Too Complex • Paying and filing electronically can help taxpayers reduce the stress of tax time and avoid the hassle. – Electronic tax filing options are faster and easier than paper filing options, and provide confirmation the return reached the IRS. – Electronic tax payment options – such as debit and credit cards – enable taxpayers to avoid standing in line at the Post Office and make taxes more convenient. • Pay online or by phone with a payment provider. 1 MasterCard debit cardholders can pay their taxes online at www.payUSAtax.com using their debit card for just $3.49 – less than it 2 costs to send certified mail. By paying by debit card, taxpayers have peace of mind that their tax payment was received securely. 1There is a fee charged by service providers. Fees are based on the amount of the payment and may vary by service provider. 2Taxpayers should contact the service provider to receive up-to-date information regarding fees. Reduced convenience fees only apply to payments made online and by telephone with payUSAtax. State and local fees may vary. 7

Tax Time Goes Electronic – Payments • While electronic tax payments are picking up steam, paper still dominates. – 19% of taxpayers who think they’ll have a tax bill will pay with a debit or credit card, up from previous years. – 16% of taxpayers who think they’ll have a tax bill will pay using an automatic withdrawal from their bank account. – 16% of taxpayers who think they’ll have a tax bill will request to pay in installments. – 46% of taxpayers who think they’ll have a tax bill will pay with a check or money order. – 1% of taxpayers who think they’ll have a tax bill will not pay at all. 8Source: Proprietary MasterCard survey (February 8 – 10, 2012)

Tax Time Goes Electronic – Refunds • Taxpayers recognize the speed and convenience of electronic refunds. – 77% of taxpayers who think they’ll get a refund will receive it electronically, either through a prepaid debit card or direct deposit to a bank account. • You can have your tax refunds directly deposited to a prepaid debit card. 1 • The H&R Block Emerald Prepaid MasterCard® card offers a fast, safe and easy way to get tax refunds. – The H&R Block Emerald Prepaid MasterCard card ensures refunds are received quickly and securely – faster than a paper check. – The card is accepted everywhere Debit MasterCard is accepted and provides purchasing flexibility and conveniences. It also helps avoid check cashing fees for taxpayers without bank accounts. – Visit www.HRBlock.com/emerald for more information.Source: Proprietary MasterCard survey (February 8 – 10, 2012) 91Terms and conditions may vary by card issuer. Please refer to your issuing financial institution for more details on the terms and conditions.

Refunds Take a Practical Tone • 69% of taxpayers plan to spend their refund on something practical this year, such as home repairs or to pay down debt. • 71% of taxpayers plan to save or invest their refund. • Just 21% of taxpayers plan to use their refund to splurge on something fun, such as a vacation or new clothes. 10Source: Proprietary MasterCard survey (February 8 – 10, 2012)

MasterCard Tax Information For more information on reducing the stress of tax season, as well as electronic payment and refund delivery options, visit: www.mastercard.us/tax-payment.html. 11

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MasterCard Tax Survey Slideshare

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