Millions of tax returns give a glimpse of American life—and provide you a better tax experience

Imagine what millions of hardworking Americans’ tax returns could tell us about our incomes, lives, and livelihoods.

• Are we making more than generations past?
• How have things changed with where we live or work?
• And how are we feeling about our finances?

A new report from H&R Block, the 2024 Outlook on American Life, reveals just that.

With nearly 70 years of experience preparing more than 20 million tax returns each year, H&R Block has a unique perspective on hardworking American’s financial situations and the behaviors that are shaping the economy.  

The fourth annual 2024 report pulls from anonymized, aggregated tax data from more than 11.4 million tax filers who worked with one of our 60,000 tax professionals during 2024 and historical return data from the last 25 years. Plus, it includes data from almost 8,000 respondents to four national surveys.

How data insights can help provide a better tax experience and outcome for you

H&R Block is all about getting to know you and what matters for your taxes. Whether you work with a tax pro or file with one of our DIY programs, we’re committed to understanding how life is changing for clients like you.

This annual report helps us better understand you and our evolving landscape. The more we know about hardworking Americans, the better we are at asking questions to ensure you get the best possible outcome at tax time.

Top findings and their tax impacts

Data from the Outlook on American Life report paints a portrait of earning, investing, saving, career aspirations and debt trends across four generations. You can check out the full report for more insights and trends.

Below, we’ve noted a few key findings from the report and highlighted takeaways to help you understand the potential tax impacts of these economic shifts on a personal level.

Each generation enjoys greater buying power

Historical data shows that, in 2024 inflation-adjusted dollars, each generation is earning more than the previous generation at the same age.

• Gen Z is enjoying as much as 30% more buying power than Millennials had at the same age.
• Millennials are enjoying as much as 30% more buying power than Gen X had at the same age.
• Gen X has about 20% more buying power than Boomers had at the same age.

Tax Takeaway:  Our tax experts know that with increases in incomes come new tax brackets and complexities.

If your income has increased, your eligibility for some tax benefits, such as the Child Tax Credit or deductible IRA contributions may be reduced or eliminated.  

*AGI adjusted to 2024 inflation levels.

Gen Z aspires to home ownership, but acknowledges challenges

From our research, we know that 63% of Gen Z aspires to save or is already saving for a home. However, 34% of them say that buying one will be their biggest financial challenge.

While achieving homeownership is a top challenge, nearly a quarter of Gen Z respondents say they’ll purchase a home in the next 12 months.

Tax Takeaway: If you’re in the market to buy a new home or if you’ve bought one in the last tax year, you may be able to claim some tax benefits. As you maintain home ownership and pay down your home loan, you may be able to take a mortgage interest deduction, including points you paid on your home loan.

Real property taxes are deductible as well. You must be able to itemize deductions to claim these deductions.

Gen Z is finding new ways to earn

To help accelerate wage gains, our report shows that Gen Z is hopping from job to job. And, to help boost their income, they’re driving for apps and turning hobbies into income.

• Nearly 1 in 3 changed jobs last year. And those who made a change did so to increase earnings.
• 24% work for an app-based employer, such as food and grocery-delivery services.

Tax Takeaway: Changing jobs or working as a contractor (as is the case for many app-based jobs) can mean big changes for how you pay taxes. As an employee, you’ll need to make sure your W-4 withholdings are up to date. With contract work, you’ll have a new set of tax responsibilities as outlined in our Guide for Gig Worker Taxes.

Tap into H&R Block’s expertise to navigate your taxes

As we gain new insights about our customers each year, one thing is clear. No matter your life stage or tax situation, H&R Block can help you get the best possible outcome at tax time.

Trust the expertise of H&R Block to help you file your taxes. Make an appointment to file with a tax pro or with H&R Block Online.