A new survey by Salary Finance has found that two in three Americans are worried about failing to submit their tax refunds on time.
Through this research, they found that this delayed tax refund could be strenuous on their financial situation. As one in five people that experienced these issues were more likely to be forced to take on additional debt. In addition to this one in ten push their accounts into overdraft in order to aid the financial problems that they deal with because of this.
Salary Finance CEO and co-founder, Asesh Sarkar commented on this research, saying “The shutdown and potential delay in tax refunds come at a time when most Americans are not in a position to take on additional financial stress—according to the U.S. Federal Reserve, 40% of American adults can’t afford a $400 emergency expense,”
Additional research found that a large number of Americans are very worried, with 36.9% of participants agreeing to this statement, and a further 30.3% saying that they were a ‘little worried.’
Asesh finished by saying “Our recent survey highlights how daily financial challenges will increase for many Americans who depend on their annual refund to catch up on bills. The road to financial wellness will get much harder for many households nationwide if tax refunds are delayed.”
So it has become apparent that a number of Americans are worried about their tax related problems. But how much of an impact does delayed tax returns have?
In general, these late returns are said to have a significant impact on financial stress. With 42% of respondents saying that because of these delays, they struggle to meet daily bills. As well as this 12.1% said that they have to rely on their family and friends to aid them with bills.
Tax refunds are imperative for financial wellbeing for such a large amount of the world population. As a significant majority rely on this in order to aid their debts and loans, with 40.8% agreeing to the fact that they use their tax refunds for these reasons. As well as this, 16.2% use their returns to pay off their medical debts, while 32.% said that they used these returns to stabilize their financial situations and bank accounts.
Late tax returns could have a negative effect on someone’s mood and mental health, research has disclosed that employees who have financial worries are 3.8 times more likely to suffer from anxiety and panic attacks and are 4.9 times more likely to suffer from depression, so it’s imperative that this situation is addressed to ensure the financial wellbeing of Americans who experience these issues.
For more information about Salary Finance, please visit www.salaryfinance.com/us.