31% Of Americans Are Gambling With Their Tax Refund—Are You One Of Them?

Nearly one-third of Americans are delaying tax preparation this season, a decision tax professionals warn could prove costly both financially and strategically.

About 31% of taxpayers admit they’re procrastinating on filing returns, according to financial services company IPX1031. The delay creates unnecessary risks, particularly for the 37% of filers who rely on refunds to make ends meet.

“It’s always nice to be able to have it buttoned down early,” Ryan Losi, certified public accountant and executive vice president with Piascik, told CNBC. That way, you know “where you’re going to land.”

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Beyond financial planning, early filing reduces vulnerability to tax identity theft, where criminals file fraudulent returns to claim refunds. This form of fraud could devastate millions of Americans who depend on tax refunds for essential expenses.

Fear drives much of the procrastination, particularly among younger taxpayers. Credit Karma found that 26% of Gen Z procrastinators delay filing because they dread discovering what they might owe.

“If you wait to the last minute and you’re actually getting a big tax bill instead of a refund, the deadline is there, and it’s coming, and you haven’t made a plan for how you’re going to address that,” Courtney Alev, head of tax at Credit Karma, told CNBC.

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Early preparation provides valuable time to develop payment strategies. “Maybe you have enough set aside to pay it,” Losi said. “But if you don’t, now you can spend the next two months saving some of your paycheck in order to pay it.”

For those expecting refunds, postponing filing means delaying access to funds that nearly half of taxpayers plan to use for debt reduction. “If you’re putting off filing, it could put some of your other goals, like paying off your credit card, at risk,” Alev cautioned.

Even taxpayers with complex financial situations benefit from early preparation. Investors awaiting brokerage statements or K-1 forms should still begin organizing their information.

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“You want to at least have your numbers together early — then you can decide when to actually file,” Losi advised.

The Internal Revenue Service began accepting returns Jan. 27, giving taxpayers until April 15 to complete their filing. However, tax professionals say that waiting until the deadline eliminates flexibility and potentially delays refunds that could be working for taxpayers rather than sitting interest-free with the government.

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