Tax refunds could cover next month’s rent, but data reveals some still delay filing
By Lisa Greene-Lewis, CPA and Tax Expert, TurboTax
Key Takeaways
- Year after year more than one in five filers wait until the last two weeks to file
- Top cities waiting to file stretch coast to coast, with west coast cities, San Francisco, Oakland and San Jose being in the top three spots in tax year 2024 and the same cities showing up year over year
- TurboTax data reveals not knowing where to start and knowledge gaps may lead to delayed filing
- With refunds increased by up to $1,000 this year, TurboTax and Credit Karma can help you easily file now
The tax deadline is quickly approaching, and for millions of Americans, it couldn’t come at a better time. With grocery bills climbing, rent and gas eating up bigger chunks of paychecks, and financial cushions running thin, the average tax refund — over $3,000 — isn’t just a bonus. For many families, it’s a lifeline.
A new study conducted by Qualtrics on behalf of TurboTax found that 69% of Americans expect a refund this year, and of those, 70% plan to put it directly toward basic living expenses — rent, bills, groceries. That’s not a vacation fund. That’s survival money.
And this year, filers could see their refund increase by up to $1,000, or a lower balance due.
So with all that money on the table, why are people still waiting to file?
America’s Waiting Game
More than 1 in 5 Americans wait until the final two weeks of tax season to file — year after year. And it’s not random. The same cities keep showing up on the top of the list. According to TurboTax anonymized and aggregated data for tax year 2024, west coast cities topped the list with San Francisco, Oakland and San Jose being the top with 44% left to file as of 3/31, next on the list was Austin with 41% left to file, and Los Angeles and Monterey-Salinas coming in 3rd with 40% left to file. Some east coast cities were not too far behind with New Yorkers and Floridians in Miami and Ft Lauderdale with 39% left.
But before you chalk it up to laziness, the data tells a different story.
It’s Not Laziness — It’s a Knowledge Gap and Not Knowing Where to Begin
TurboTax recent surveys of 2,000 adults paints a picture of a country that’s largely in the dark about how taxes work.
- Two out of five Americans say they knew little or nothing about the new tax laws.
- 19% would rather clean a clogged toilet at a frat house than figure out how their taxes are changing under the new bill.
- 22% say they feel slightly or not at all confident about taxes.
- More than half (55%) depend on a parent, accountant, or friend to help them file — because they don’t feel they have the foundational knowledge to do it on their own. Among Gen Z, that number jumps to 72%.
- Only about half of Americans (49%) can confidently explain the difference between a tax deduction and a tax credit — a core concept.
- And 17% say they aren’t knowledgeable about any major deductions or credits — not the Child Tax Credit, not the Earned Income Tax Credit, none of them.
Recent research by TurboTax also revealed one of the biggest barriers to doing taxes for some people is they don’t know where to start and what documents to gather. When you use TurboTax and Credit Karma, a concierge will help you easily gather your documents and get started whether you do your taxes virtually or in person.
Gen Z: The Most At-Risk Generation
According to an earlier TurboTax study, the data on younger filers is especially striking. Over 54% of Americans aged 18–24 didn’’t know when the tax deadline was. One in three 25–34-year-olds didn’t know either.
And that matters, because Gen Z is increasingly in the workforce, increasingly financially independent, and increasingly leaving money on the table.
The Cost of Waiting
Here’s what waiting on your taxes actually costs: time, stress, and potentially money. For someone who could use their refund to pay rent or cover bills, every week of waiting is a week of financial stress that didn’t have to happen.
The IRS is reporting refunds are up. That’s real money, for real needs.
The Bottom Line
Whether you live in San Francisco or Savannah, whether you’re a Gen Z first-time filer or a seasoned taxpayer who just never quite got around to it — the numbers are clear: Americans need their refunds, but some are waiting until close to the deadline to file when they can get them done today and get closer to their refunds.
Here are the top tips you should know to help you easily file, maximize your refund, and file before the deadline without worry.
- Get started and gather all of your documents in one place. Gather documents that report your income like W-2 and 1099s, and documents, forms and receipts related to deductions and credits you can claim.
- Decide how you want to file. Whether you want to DIY, have someone help you along the way, or fully do your taxes for you virtually or in person, TurboTax and Credit Karma are here for you. When you DIY through TurboTax or Credit Karma you are easily guided through your taxes and TurboTax AI agents can help you from the beginning. Whether it’s helping you figure out what documents to gather (one of the biggest reasons people procrastinate) to automating data entry for over 92% of tax forms eliminating manual entry. You can also jumpstart your return by snapping a photo of your W-2s and 1099s and the information will automatically transfer to the right forms. If you want someone to do your taxes for you, you can connect to one of our 15,000 tax experts with an average 13 years experience virtually or in person in one of our 20 local retail locations or 600 service centers.
- Don’t rely on general public LLMs for tax filing. When it comes to something as important as your taxes, only use a purpose built solution for tax filing. Never share your sensitive, personal information with general public LLMs. TurboTax is built specifically for tax preparation and is designed for accuracy, compliance, reliability, and security. TurboTax is also certified by the IRS to prepare and e-file tax returns.
- Go online and e-file with direct deposit. If you are doing your taxes yourself go online and e-file with direct deposit. That’s the fastest way to get your refund. The IRS expects to issue refunds within 21 days or less after acceptance of your return. With TurboTax you can file up until 11:59 pm on April 15 and make the filing deadline.
- Take advantage of the new deductions and credits. There are new deductions and credits you may be eligible for like the deduction for tips up to $25,000, deduction for overtime up to $12,500 ($25,000 married filing jointly), the Child Tax Credit up to $2,200 for each child under 17, the enhanced deduction for seniors 65 and over, the new deduction for auto loan interest up to $10,000, and the increased SALT cap of $40,000 if you’re a homeowner. If you are waiting and you live in one of the regions with high state and property taxes you may benefit from the increase in the state and local and property taxes you can deduct.
- Don’t forget the most missed credits. Credits like the Earned Income Tax Credit up to $8,046 for a family with three kids and the Retirement Savers Credit up to $1,000 single and up to $2,000 married filing jointly can really boost your refund and help your tax outcome, but IRS reports one out of five people miss these credits every year. With TurboTax and Credit Karma you are proactively reminded about these tax benefits if you are eligible so that you get every dollar you deserve.
- File even if you make under the IRS income threshold. The IRS income threshold is $15,750 single, $23,625 head of household, and $31,500 married filing jointly. Every year the IRS reports over a billion dollars in unclaimed refunds due to people not filing to claim their refunds. Much of the unclaimed refunds belong to students and other people that make under the IRS filing thresholds. If you had federal taxes withheld or you are eligible for a refundable credit like the Earned Income Tax Credit you should file so you don’t leave any money on the table.
- Make a tax year 2025 IRA contribution. You can contribute up to $7,000 ($8,000 50+) by April 15 and you may be able to deduct the contribution on your 2025 taxes and lower your taxable income. Just make sure you tell your plan administrator the contribution is for tax year 2025
If you are missing information important for your return and need to file an extension, you can file an extension with TurboTax , but remember an extension is an extension to file and not to pay if you owe. Delaying filing because you think you may owe? Don’t let the thought of possibly owing hold you back; by the time you get all the deductions and credits available, you may be getting a tax refund! The majority of filers do. If you do owe money, pay as much as you can, and then you can contact the IRS for an Installment Agreement, which allows you to pay what you owe over six years.
You don’t have to figure it out alone. Whether you live in one of the procrastinating cities or not, regardless of the reason for delaying filing, you can file your taxes with TurboTax and Credit Karma now whether you want to file yourself or have a tax expert prepare and file your taxes for you.
Methodology
TurboTax tax year 2024 DMA data is anonymized and aggregated in compliance with US tax regulation requirements. Survey data is sourced from a TurboTax online survey within the United States by Qualtrics on behalf of Intuit TurboTax on February 5, 2026 to February 9, 2026, among 1,010 adults ages 18 and older, by Wakefield Research among 1,000 Nationally Representative U.S. Adults Ages 18+, and an oversample to a total of 1,000 US Hispanic Adults Ages 18+, between September 19th and September 28th, 2025, using an email invitation and an online survey, and a Harris Quest DIY survey of 2,000 adults ages 18 – 65.