The Way Americans are Earning a Living and Financing their Lifestyles is Shifting According to H&R Block’s 'Outlook on American Life' Report
“We’re excited to again unveil insights and identify trends that tell a story of the many ways people are creating income, year-over-year,” said
Gathering insights from actual tax return data nationwide, the ‘Outlook on American Life’ report provides a unique and clear perspective on how everyday Americans are adjusting to changing economic dynamics. Everything from people’s new sources of income, changes in working and retirement ages, how they’re investing for their future, and more, all point to a continuing shift in mindsets and approaches to how we live our financial lives.
Do The ‘Side’ Hustle
Despite economic uncertainty, small business growth continued to rise significantly this past year – a stark contrast to what we saw during the pandemic nationwide. Demonstrating how the pandemic was a catalyst fueling many Americans to rethink their employment and be their own boss – in tax year 2022,
While some may still think of small business owners in the brick-and-mortar mindset, the reality is that gig work is fueling a lot of new solopreneurs – or individuals who start and run a business independently without the support of a co-founder or W-2 employees. In the past year, more Americans have turned to gig work as their primary source of income with ride-sharing services and home rentals as the top categories for new business filings. App-based drivers increased by nearly 48%, and individuals who rented out their cars or homes rose by 152%.
Booming Out of Retirement Back to Work
The report also gives a peek into how retirement is changing across the nation. Insights from the report reveal an increase in the number of retirees taking on side hustles to maintain income and to avoid tapping their retirement accounts. As costs of living rose nationwide, and opportunities for income-generation continue to diversify with gig work, we saw that four percent of retirees “unretired,” or left retirement and rejoined the workforce in tax season 2022.
Additionally, the report showed that the number of
‘“What we’re seeing is likely surprising to this generation who greatly anticipated their retirement, not their un-retirement,” said Orosco. “With continued financial challenges and inflation concerns, many retirement age Americans are actively seeking ways to augment their income. We see our clients demonstrating incredible resilience and finding new ways to apply the skills they built before they retired.”
The Crypto Craze Continued
Despite continued volatility in the crypto markets, data shows Americans’ interest in the cryptocurrency industry did not slowdown last year. In fact, the number of crypto owners in the US nearly doubled in tax season 2022 with 44% of respondents saying they first bought crypto in the past year.* Correspondingly, we saw an 85% rise in the number of clients who reported crypto transactions, or buying or selling of those currencies.
Crypto has shown it's not immune to the ups and downs of the financial markets so it will continue to be an area to watch in the year ahead. Whether you “buy and hold” like 85% of crypto owners do, or actively trade like 38% of owners do, it’s a constantly evolving marketplace that requires attention and help in navigating for taxes year-round.
For more information and insights from
*Gemini 2022 Global State of Crypto
For Further Information Investor Relations:
Michaella Gallina, (816) 854-3022, firstname.lastname@example.org Jordyn Eskijian, (816) 854-5674, email@example.com Media Relations: Angela Davied, (816) 854-5798, firstname.lastname@example.org
Source: HRB Tax Group, Inc.