Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
Thursday, February 23, 2017
NO SURPRISE TO ME
break from my tax season hiatus for some important information.
“The Nerd Wallet survey, conducted online by
Harris Poll, also found that many Americans lack a basic understanding of
federal tax rules.
Actually, it was more blunt.
Failing tax grades: Most taxpayers
get failing marks for their tax knowledge.
Out of eight questions about IRS
rules for common deductions, retirement and education savings plans, only a
quarter of the surveyed taxpayers correctly answered the questions.
Breaking down the failing grades,
the NerdWallet poll found that nearly half of taxpayers (46 percent) don’t know
into what tax bracket their income falls. Seven percent didn't even know what a
tax bracket is.
Another 57 percent, or nearly three
in five taxpayers, don’t know what a W-4 is.
And yes, the survey group was more
than 1,800 adults across the United States who filed income taxes last year and
plan to do so again this year. Obviously, they didn't learn from last year.”
to a lack of tax knowledge is NOT
tax preparation software or an online filing service!As I say each and every year –
No software package, or online
filing service, is a substitute for knowledge of the Tax Code, and no tax
software package, or online filing service, is a substitute for a competent,
experienced tax professional!