2017 AARP Foundation Taxpayer Satisfaction Survey Report
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1 2017 AARP Foundation Taxpayer Satisfaction Survey Report Lona Choi-Allum & Melissa Brown June
2 About AARP Foundation AARP Foundation is working to win back opportunity for struggling Americans 50+ by being a force for change on the most serious issues they face today: housing, hunger, income and isolation. By coordinating responses to these issues on all four fronts at once, and supporting them with vigorous legal advocacy, the Foundation serves the unique needs of those 50+ while working with local organizations nationwide to reach more people, strengthen communities, work more efficiently and make resources go further. AARP Foundation is AARP s affiliated charity. Learn more at Acknowledgements Jackie Lynn Coleman and Rosa Maymi of AARP Foundation Tax-Aide provided context and feedback that contributed to the study design. S. Kathi Brown, in Strategic Issues Research, reviewed this report. Melissa Brown, Intern, Strategic Issues Research, created the tables for the report. Karen Turner, Strategic Issues Research, number checked the data in the report. Lona Choi-Allum, in Strategic Issues Research, managed the survey and wrote the report. For additional information, contact Lona Choi-Allum at (202)
3 Table of Contents Executive Summary Methodology Findings Satisfaction with AARP Foundation Tax-Aide Service Quality of AARP Foundation Tax-Aide Service..14 Knowledge of AARP Foundation Tax-Aide...16 Alternatives to AARP Foundation Tax-Aide Perception of AARP Impact of AARP Foundation Tax-Aide...22 Demographics
4 Executive Summary The AARP Foundation Tax-Aide program is administered in cooperation with the U.S. Internal Revenue Service (IRS) and is available free to taxpayers with low to moderate income, with special attention to those 50 and older. The program provides services from February 1 st through April 15 th each year and is currently in its 49 th year. This year, the program served approximately two and a half million people at more than 5,000 sites nationwide. This report summarizes findings from the 2017 AARP Foundation Taxpayer Satisfaction Survey conducted from February 2017 through April Unless otherwise noted, the content included in the text of the report reflects data from the 2017 paper and online surveys only. The purpose of the study was to profile AARP Foundation Tax-Aide taxpayers and to gather information on the following items: Taxpayer satisfaction with the AARP Foundation Tax-Aide service Taxpayer awareness of AARP as a Tax-Aide service provider Taxpayer experiences with the AARP Foundation Tax-Aide service 4
5 Key Findings Customer Satisfaction The vast majority of respondents stated that they were very satisfied (96%) with the AARP Foundation Tax-Aide service. Nearly all Tax-Aide respondents reported that the overall quality of service they received was excellent (87%) or good (10%). In fact, among those who used AARP Foundation Tax-Aide in previous years, about nine in ten (9) say that they returned to AARP Foundation Tax-Aide because they are satisfied with the quality of service. Volunteer friendliness (90%) and volunteer helpfulness (89%) were rated as excellent by an especially large share of respondents. About four in five respondents reported that the volunteers were an excellent source of knowledge on taxes (83%) and had done an excellent job explaining their tax return to them (83%). 5
6 Key Findings, cont d. The majority consistently report that they use Tax-Aide because it s free of charge, about half use their refund or the money saved to pay bills, and a quarter use some of the money towards their savings. In addition, over half of all respondents said they would have paid someone to prepare their taxes if the Tax-Aide service had not been available. Over four in five respondents (85%) expressed that having their taxes prepared by a knowledgeable volunteer from AARP Foundation Tax-Aide gives [them] peace of mind. Word of mouth is the most common way through which taxpayers learn about AARP Foundation Tax-Aide, which shows how important word-of-mouth referrals are to the program. When asked the likelihood that they would recommend AARP Foundation Tax-Aide to others, 96% answered 8, 9 or 10 on a scale of 0 (not at all likely) to 10 (extremely likely). In fact, a full 87% selected the highest rating of 10 for "extremely likely. In addition, over four in five (85%) reported that they have already recommended AARP Foundation Tax-Aide to others. 6
7 Implications AARP Foundation Tax-Aide continues to provide a much needed service for individuals with low to moderate income. The fact that so many taxpayers used their refund or money saved to pay bills suggests that the access to free tax preparation through Tax-Aide may be an important budget stretcher for many lower-income taxpayers. Tax-Aide volunteers are the backbone of the Tax-Aide program and the reason for the high taxpayer satisfaction, underscoring the importance of volunteer retention, recruitment, and training to the program s continued success. Their continued high marks around friendliness, helpfulness, and tax knowledge reflect the high caliber of assistance offered by these volunteers. Of note is the fact that, when citing their reasons for returning to AARP Foundation Tax-Aide, over two-thirds of repeat customers point to a sense that the volunteers are genuinely concerned about them, suggesting that taxpayers value volunteers who are not only knowledgeable but also warm and caring. 7
8 Methodology The 2017 AARP Foundation Taxpayer Satisfaction Survey replicated questions from the 2014, 2015, and 2016 surveys so that comparisons could be made between the years. Taxpayers were given the option of completing the survey in one of two ways: Taxpayers were given a one-page paper questionnaire, in English or Spanish, that was attached to the envelope containing their completed tax forms, or Taxpayers could choose to complete an online version, in English or Spanish, of the questionnaire. A link to the online questionnaire was provided to respondents on the paper questionnaire. 8
9 Methodology, cont d. A total of 192,120 usable questionnaires were received by mail by Readex Research in Stillwater, MN between February 2017 and April All online data collection was managed in-house by AARP. A total of 2,662 online responses were received between February 2017 and April A random sample of 3,000 was selected from all English and Spanish paper and online survey returns for this national report.* This report provides data from 2014, 2015, 2016 and As in previous years, a response rate for both the paper and online surveys cannot be calculated because it is not known how many envelopes with the online questionnaire link were distributed. Percentages may not total to 100 due to rounding. *The number of online responses included in the national sample was determined based on the percentage of online returns () received compared to the total number of paper and online returns; no Spanish returns were selected in the random selection process for the national sample due to the small number returns. 9
10 Satisfaction with AARP Foundation Tax-Aide Service 10
11 The majority of respondents continue to report that they are very satisfied (96%), extremely likely to recommend Tax-Aide to others (87%) and have already recommended Tax-Aide to others (86%). Key Indicators Very satisfied Extremely likely to recommend* Already recommended 96% 97% 97% 97% 87% 88% 89% 88% 86% 84% 86% 85% 0% 20% 40% 60% 80% 100% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) Question 5. Please rate how satisfied you are with the AARP Foundation Tax-Aide service. Are you? (Very satisfied, Somewhat satisfied, Not very satisfied, Not at all satisfied) Question 8. On a scale from zero to 10, how likely would you be to recommend AARP Foundation Tax-Aide to a colleague, friend or family member? (zero = not at all likely, 10 = extremely likely) * First asked in 2014 Question 9. Have you already recommended AARP Foundation Tax-Aide to others? (Yes/No) Source: AARP Foundation Taxpayer Satisfaction Survey (2017,2016, 2015, 2014). 11
12 Over half of respondents (58%) have used AARP Foundation Tax-Aide four or more times. The share reporting seven or more times has grown in recent years, while first-time or two to three time users have declined. Numbers of Times Used Tax-Aide First time 2-3 times 4-6 times 14% 15% 16% 16% 27% 27% 29% 30% 3 34% 33% (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 7+ times 26% 23% 2 2 No answer 0% 20% 40% 60% 80% 100% Question 2. Including today, how many times have you used AARP Foundation Tax-Aide? Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 12
13 Nine in ten (9) reported returning again this year because they are satisfied with the quality of service they received. Reasons for Having Returned (Base: Respondents who used Tax-Aide in past years) I am satisfied with the quality of service I receive The service is free of charge. 73% 73% 70% 69% I feel that the Tax-Aide volunteers are genuinely concerned about me. I don't know how to do my own taxes. Other 5% 8% 5% 7% 49% 49% 48% 46% 68% 69% 66% 66% 2017 (n=2,550) 2016 (n=2,515) 2015 (n=2,498) 2014 (n=2,501) No answer 0% 20% 40% 60% 80% 100% Question 4. If you received tax assistance from AARP Foundation Tax-Aide in previous years, please identify your reason(s) for returning again this year. *Multiple responses allowed. Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 13
14 Quality of AARP Foundation Tax-Aide Service 14
15 Five of six dimensions of Tax-Aide services are viewed as excellent by more than 80% of Tax-Aide taxpayers. % Excellent Rating for Key Dimensions of Service Friendliness of AARP volunteers Helpfulness of AARP volunteers 90% 9 93% 9 89% Overall quality of service The volunteer's tax knowledge How well the volunteer explained your return to you Location Question 1. How would you rate each of the following items? Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 83% 83% 87% 83% 83% 85% 86% 83% 78% 78% 8 77% 87% 89% 9 88% 0% 20% 40% 60% 80% 100% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 15
16 Knowledge of AARP Foundation Tax-Aide 16
17 From another person is the most common method of hearing about Tax-Aide (37%). From another person* From a newspaper or newsletter From a senior center** How First Learned of Tax-Aide 16% 20% 23% 2 16% From the library** 10% 2016 (n=3,000) Other 9% 2015 (n=3,000) 2014 (n=3,000) 5% Another AARP source (phone, publication) 7% 7% 7% From the IRS (phone, flyer, publication) On TV or radio 3% From AARP's website, 4% 4% 3% No answer 7% 3% 10% 0% 20% 40% 60% 80% 100% *The percentage may be lower than in previous years because two new response options were added this year ( from a senior center and from the library ). **These responses were added to the survey in Question 6. How did you first hear about AARP Foundation Tax-Aide? Check one response. Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 37% 48% 45% 48% 2017 (n=3,000) 17
18 Alternatives to AARP Foundation Tax-Aide 18
19 Over half of respondents (59%) reported that they would have paid someone to do their taxes if AARP Foundation Tax-Aide had not been available. Potential Approach to Taxes if Tax-Aide Had not Been Used Paid someone to do it Done it myself Asked a friend or family member for help Asked IRS for help Would not have filed taxes No answer 6% 5% Question 7. If you had not used AARP Foundation Tax-Aide today, how would you have prepared your taxes? Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 4% 4% 5% 6% 15% 17% 17% 16% 16% 17% 16% 17% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 59% 56% 56% 54% 0% 20% 40% 60% 19
20 Perception of AARP 20
21 Approximately four in five (80%) have a more favorable opinion of AARP as a result of their experience with AARP Foundation Tax-Aide. 90% 80% Impact of Tax-Aide Experience on Favorability Toward AARP 80% 80% 80% 80% 70% 60% 50% 40% 30% More favorable No difference Less favorable* No answer 20% 10% 0% 18% 18% 18% 18% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) Question 11. Has your experience with AARP Foundation Tax-Aide service influenced your opinion of AARP to be? *In 2016, 2015, and 2014, the percentage of respondents who said less favorable was less than 0.5%. Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 21
22 Impact of AARP Foundation Tax-Aide 22
23 Peace of mind is an especially widespread intangible benefit of receiving Tax-Aide assistance, reported by over eight in 10 respondents. Impact AARP Foundation Tax-Aide Has Had on Your Life It gives me peace of mind knowing that my taxes are being prepared by a knowledgeable volunteer. It has reduced the anxiety I have when I do my taxes. I now have more money to cover other expenses. Other It has had no impact in my life. No answer 3% 3% 4% 35% 38% 36% 36% 85% 87% 85% 86% 65% 66% 65% 64% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 0% 20% 40% 60% 80% 100% Question 10. What type of impact has the AARP Foundation Tax-Aide service had on your life? (check all that apply) Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 23
24 Over half (5) of those who have used Tax-Aide in the past reported that they used their refund or the money they saved to pay bills. Uses of Refund or Money Saved (Base: Respondents who used Tax-Aide in past years) Paid bills 5 57% 57% 58% Put some of the money into savings Purchased medicine, food, or clothing Spent it on doctor, dental or eye care Spent it on a leisure or recreational activity Other 26% 27% 27% 25% 17% 23% % 18% 15% 17% 8% 10% 9% 9% 3% 9% 8% 6% 2017 (n=2,550) 2016 (n=2,515) 2015 (n=2,498) 2014 (n=2,501) 0% 20% 40% 60% 80% 100% Question 3. If you used AARP Foundation Tax-Aide in previous years, how did you use your refund or the money you saved by using this free service? Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 24
25 Demographics 25
26 Demographic Highlights Results showed that the majority of Tax-Aide respondents are members of AARP (67%), age 60 or older (89%), and female (67%).* In addition, almost half of respondents report that they have an annual household income of less than $30,000 (49%). *2-3% of respondents did not provide a response to these questions (i.e., AARP membership, age of respondent, and gender). 26
27 Gender About two in three respondents (67%) are female. Male Female 30% 30% 30% 3 67% 67% 67% 65% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) No Answer 3% 3% 4% 3% 0% 20% 40% 60% 80% 100% Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 27
28 Age of Respondents Roughly two in three (65%) respondents are ages 70 and older. The percentage of respondents ages (33% in 2014 to 38% in 2017) has increased over the past four years % 3% 3% 6% 6% 6% 6% 8% 24% 26% 25% 27% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) % 37% 36% 33% % 26% 26% 25% No answer 3% 4% 0% 20% 40% 60% 80% 100% Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014,). 28
29 Age of Respondent s Spouse % 4% 6% 7% 6% 9% % 3 27% 28% 4 38% 40% 38% 2017 (n=1,007) 2016 (n=1,007) 2015 (n=1,068) 2014 (n=1,010) % No answer 5% 0% 20% 40% 60% 80% 100% Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 29
30 Annual Household Income* Seven in ten (70%) respondents have household incomes less than $40,000. The percentage of respondents with incomes less than $20,000 has decreased over time (3 in 2014 to 24% in 2017). <$10K $10K - <$20K $20K - <$30K $30K - <$40K $40K - <50K $50K or more 5% 5% 5% 8% 14% 1 13% 1 19% % 2 20% 19% 18% 17% 17% 14% 13% 25% 25% 27% 27% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 0% 20% 40% 60% 80% 100% *Please note that these percentages were calculated AFTER excluding from the denominator the many respondents who refused to answer this question. The reason was due to the high percentage of respondents (9%) who refused to answer the question. Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 30
31 Marital Status Roughly two in three (65%) respondents are not married. Married Living with partner Widowed 28% 28% 29% 29% Divorced/separated 26% 23% 2 2 Never married No answer 34% 34% 36% 34% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 0% 10% 20% 30% 40% 50% Source: AARP Foundation Taxpayer Satisfaction Survey (2017,2016, 2015, 2014). 31
32 Race/Ethnicity Non-Hispanic White Non-Hispanic Black Hispanic Asian/Pacific Islander (Asian/Native Hawaiian or other Pacific Islander*) Native American (American Indian or Alaska Native*) Other (includes multiple race selections*) No answer 7% 7% 6% 7% 4% 5% 5% 5% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000)* 8 83% 8 8 Question 13. Are you of Hispanic, Spanish or Latino origin or descent? Question 14. Which of the following best describes your race? (check all that apply) Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 0% 20% 40% 60% 80% 100% 32
33 Language spoken in the home Primary Language At Home English Spanish Other No answer 4% 4% 3% 3% 94% 95% 96% 95% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) 2014 (n=3,000) 0% 20% 40% 60% 80% 100% Question 15. What language is most often spoken in your home? Check one response. Source: AARP Foundation Taxpayer Satisfaction Survey (2017, 2016, 2015, 2014). 33
34 Disability Status Yes 24% 25% 27% 26% 2017 (n=3,000) 2016 (n=3,000) 2015 (n=3,000) No 7 68% 67% 70% 2014 (n=3,000) No Answer 4% 8% 5% 4% 0% 20% 40% 60% 80% 100% Question 15. Does any disability, handicap or chronic disease keep you from participating fully in work, school, household, or other activities? Source: AARP Foundation Taxpayer Satisfaction Survey (2017,2016, 2015, 2014). 34
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