The creation of an ecosystem of data-connectivity vendors able to source income data on an ongoing basis poses a threat to self-serve tax-filing software like TurboTax, which does so only at tax time. These API-based vendors plug into embedded tax-filing apps that partner with banks and investing platforms to identify tax savings, optimize withholdings strategies, and fast-track refunds.

This type of support represents a service and convenience upsell for fintech platforms and institutions. It also helps drive user loyalty. Tax filing is transformed from a yearly chore to a real-time and rewarding exercise for consumers, who are able to align spending, borrowing, and investments to outcomes. Skeptical Generation X and Millennial investors, who may be just now starting to think about their retirement years, may be the first to be won over.

Key questions discussed in this report:

• How are taxpayer habits shifting when it comes to how taxes are calculated and filed?
• What are the emerging tech alternatives in the tax-filing space and what challenges do they present to traditional players?
• How can embedded tax tech present benefits to tax filers and various worker segments beyond dollars and cents?

Companies mentioned:

Abound, Acorns, ADP, AirBnB, Amazon, April, Argyle, Atomic, AWS, Bank of America, Column Tax, Credit Karma Tax, Envestnet Yodlee, Fifth Third, FreeTaxUSA, Gusto, Home Depot, Hurdlr, Intuit Credit Karma, Intuit Mint, Intuit QuickBooks, Intuit TurboTax, Keeper, Lance, Liberty Tax, Microsoft, MoneyLion, Morningstar ByAllAccounts, Ntropy, Pinwheel, Plaid, Solo, Spade, TaxAct, TaxSlayer, TikTok, TriNet, Truist, Uber, Unit