The latest update from the Internal Revenue Service indicated the average federal tax refund is almost 11% higher this year versus 2024.

But a consumer survey orchestrated by ACI Worldwide also highlighted the volume of young consumers who might not be following filing protocols at all.

Let’s continue this roundup with the information perhaps most important to independent and buy-here dealerships. As of March 13, the IRS reported the average refund was $3,623, which is 10.8% higher than the same juncture last year.

“Tax refunds remain strong,” Cox Automotive chief economist Jeremy Robb wrote in an analysis posted earlier this week. “That is helping support near-term spending.”

Of course, operators hope potential buyers spend that money at their stores. Or perhaps get caught up on payments.

But the youngest customers dealerships might encounter don’t appear to be engaged with the tax world as much as older generations.

On Thursday, ACI Worldwide released its third annual ACI Speedpay Tax Payment Trends report, a nationally representative survey of 1,198 US adults conducted in partnership with YouGov.

Researchers found that nearly one in three Gen Z adults (30%) say they do not file a federal tax return, and another 30% are unsure whether they will file at all.

Furthermore, while digital tax filing and payments are now the default for most Americans, ACI Worldwide explained that how people file, pay, and think about fraud still vary sharply by generation.

Key findings of the survey indicated:

—30% of Gen Z say they do not file taxes, with another 30% unsure whether they will file

—44% of Americans plan to save their refund; 37% will use it to pay down debt

—Security concerns rise with age, with younger demographics underestimating fraud risk.

—64% would switch to debit to avoid higher credit card transaction fees

—Paper filing has dropped to just 5% of taxpayers, a record low

The survey data showed financial pressure across all age groups.

ACI Worldwide indicated 44% of taxpayers plan to deposit their refund directly into savings, making it the most common use for the third year in a row.

Another 37% plan to use their refund to pay down debt.

Only 8% plan to use the money for a vacation.

For Gen X, ACI Worldwide noted refunds are overwhelmingly practical: 43% will direct theirs toward debt and 88% expect to receive their refund via direct deposit, the highest rate of any generation in the study.

“Tax refunds are no longer spending money. They are financial survival,” said Ron Shultz, executive vice president and general manager of ACI Speedpay at ACI Worldwide. “Consumers want faster access to funds, full transparency on what it costs to pay their taxes, and real confidence that their information is protected. That expectation is now the baseline.”

The survey also highlighted that concern about fraud differs sharply by age.

ACI Worldwide found that Boomers show the greatest concern about identity theft at 51%, followed by Gen X at 49%. Gen Z and Millennials were the most likely to report no concern about any fraud category.

“The generation least likely to file taxes is also the least concerned about fraud, highlighting a growing gap between risk and awareness among younger Americans,” ACI Worldwide said.

Paper tax filing fell to 5% in the 2026 survey, down from 11% in 2025 and 10% in 2024.

Meanwhile, ACI Worldwide said 42% of taxpayers now file electronically through popular software platforms, up from 39% last year.

According to the report, millennials lead software adoption at 53%.

ACI Worldwide added electronic funds withdrawal is now the top overall payment method at 29%, up from 25% in 2024. Debit card payments account for 20%, with Gen Z leading all generations in debit usage at 25%.

Direct deposit is the preferred refund method for 80% of respondents overall and check preference among Gen Z dropped from 24% in 2025 to 14% in 2026.

“Generation is now the strongest predictor of tax payment behavior,” Shultz said. “A Gen Z taxpayer who isn’t sure they need to file has a completely different relationship with the system than a Boomer worried about identity theft. That gap is widening.”

The full 2026 ACI Speedpay Tax Payment Trends report is available at aciworldwide.com.