The 2020 tax filing season presented a dramatically different economic landscape for taxpayers, with IRS statistics revealing profound shifts in tax activities compared to previous years. An analysis of individual income tax return data between 2019 and 2020 shows significant changes in filing patterns and taxpayer behavior.

Declining Filing Volumes

The IRS received 5.3% fewer individual tax returns in 2020 (136,509,000) compared to 2019 (144,125,000). This notable decrease likely reflects economic uncertainty during the COVID-19 pandemic and altered taxpayer strategies.

Processing capacity saw an even steeper decline, with the IRS handling 12.2% fewer returns (124,631,000 in 2020 versus 141,870,000 in 2019), suggesting operational challenges during the public health crisis.

Shift Toward Self-Filing

Electronic filings decreased by 4.4% overall (123,984,000 in 2020 vs. 129,721,000 in 2019), but revealed an important trend: self-prepared returns increased by 7.7% , while professionally prepared filings dropped 13.8%. This indicates growing taxpayer comfort with digital filing platforms.

Surge in Online Tax Information Seeking

IRS.gov experienced a 159.8% explosion in traffic , jumping from 491,279,000 visits in 2019 to 1,276,240,000 in 2020. This unprecedented demand for digital tax resources highlights how Americans increasingly relied on online tools to navigate financial uncertainty.

Refund Patterns Show Mixed Results

The IRS issued 11.8% fewer refunds in 2020 (92,162,000 vs. 104,452,000 in 2019), with total refund amounts dropping 10.7% to $254.99 billion. However, the average refund increased 1.2% to $2,767, suggesting those who did file may have had relatively stronger financial positions.

Direct deposit refunds saw a 13.4% volume decrease (76,725,000 in 2020) but maintained a 1.0% increase in average amount ($2,907). These figures demonstrate how pandemic pressures affected both taxpayer liquidity and IRS disbursement capabilities.

Conclusion: A Transformative Tax Year

The 2020 tax season data reveals more than just pandemic impacts—it shows fundamental changes in taxpayer behavior. With increased self-filing and massive adoption of digital tools, Americans demonstrated adaptive financial management during crisis conditions. The IRS now faces heightened demand for improved digital services to meet these evolving taxpayer needs. These trends warrant continued observation as they may represent lasting transformations in how Americans interact with the tax system.