Millennials are tech-savvy and strive to be more financially literate than generations before them. As the largest population of the workforce that pays taxes in the United States, millennials contribute much to how American society is transforming how they spend money! Given the complexity of the financial issues that millennials face today, especially compared to their predecessors, firms and tax preparation businesses can target them as valuable clients to work with and find solutions for.
Understanding the concerns of millennials is crucial to providing them with excellent services given their context. Failing to do so may affect your credibility and risk losing the patronage of some excellent clients that are here to stay.
Here are some of the tax-related issues and concerns that millennials are facing today:
Many millennials are in the stages of their life where they are transitioning into adulthood and full independence. Understanding what their parents have done in the past regarding taxes may not be so familiar to this generation—especially since the current tax law allows parents to claim dependents until twenty-four years of age!
Although millennials are trying to be more financially independent, preparing their own taxes might seem like a completely foreign task. Professional tax preparation software can help in this regard, especially for tax preparers figuring out a millennial individual’s tax return. Since you’re addressing their needs via tax resolution services, it’s a great opportunity to start building a life-long partnership with you.
What’s a millennial without working a freelance gig on top of their full-time job? Many millennials are attracted to the freedom of freelance work and the power to earn extra income on the side. They are the generation that comprises almost half of the gig economy, with estimates expected to grow in the near future. While this can help many millennials pay their bills and afford their rent, there are tax repercussions for working solely in the gig economy.
Freelancing is essentially contractual work, and in this type of employer-employee relationship, the company is not obligated to withhold taxes for you. Those working freelance might not realize that they need to pay quarterly taxes and self-employment tax, too. Working with tax preparers with the right systems can help millennials prepare for tax obligations that they may have missed out on.
The IRS typically sends notices out via mail, which millennials don’t depend on anymore. People in this demographic tend not to live in permanent addresses as renting tends to be the more popular choice. It can be terrifying to have a tax problem that has grown to large proportions by the time the IRS catches up with you—so, in this sense, tax resolution experts are of great value to millennials!
Though they live life with more flexibility in terms of jobs, homes, and technology, millennials are still very dependent on tax experts to help them navigate through a difficult world of finances and taxes. This demographic faces more challenges than previous generations did with the complicated problems of the world they find themselves in.
Having to deal with tax-related and financial burdens is just another thing to add to their plate! By being ready with these expectations and the right tax software for preparers, your business can effectively and efficiently position itself to work with millennials for a partnership that will continue long into the future.
Are you looking for more advice and help on managing a tax preparation business? Here at Keystone Tax Solutions, we offer clients who are starting their own tax businesses affordable, fun, and innovative products that will allow them to scale and grow. Contact us today to get a free demo on the best tax preparation software that we offer!
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