TurboTax introduces the first trends report of its kind, using data drawn from 16 million TurboTax anonymized tax returns. We provide unique, data-driven insights into finance, tax, and economic trends for consumers, analysts, policymakers, and the general public. Most analyses on the topics in the report are drawn from surveys that, while informative, rely on a limited number of respondents and self-prepared information, which can sometimes lead to errors and over-generalization.
TurboTax uses anonymized and aggregated data in compliance with U.S. tax regulation requirements, sampled to better reflect the general U.S. population of tax filers rather than the TurboTax customer base. Data is compiled by filing status, age, income group, and other characteristics in order to understand how personal and household economics vary across different segments of the population. Our mission is to make tax data more accessible so that it can be readily applied toward tax education, decision-making, and forecasting trends.
TurboTax Data Trend Report: Shifts in Income, Employment, Crypto Investing Revealed
Data shows a 10.2% increase in adjusted gross income, Millennials and Gen Z led in changing employment, 2.9% of returns included crypto.
Following COVID-19, day-to-day life has changed for millions of Americans. They have experienced shifts in employment and income, and their investing habits have changed. Our first trends report helps Americans get key insights into their finances and taxes, revealing unique and relevant trends from tax year 2019 to 2021.
Our data will answer questions like:
- How has employment shifted?
- How has income changed over time?
- How has crypto investing changed?
Key Findings
Income Growth: The median Adjusted Gross Income (AGI) for U.S. tax returns was $46,000, a 10.2% increase in 2021 compared to 2020. The gains are highly dependent on filing status and life stage, and are dampened when considering inflation. When adjusting for inflation, the median AGI saw a 5.3% increase year-over-year.
Employment: Millennials and Gen Z are leading when it comes to changing employers. Employer relationships become more stable with age. 73% of employed, single tax filers between the ages of 18 and 24 had at least one change of employer in 2021, compared to 33.2% of those between 45 and 54.
Cryptocurrency: 2.9% of returns overall included taxable cryptocurrency transactions for 2021. Inclusion varied by age group. At its highest for single filers, 4.5% in the 25 to 34 age group included taxable cryptocurrency transactions in their returns for 2021.