A survey of over 1,000 U.S. adults found that most of them could not answer basic tax questions.
Nearly 60 percent didn't know the difference between a tax credit and a tax deduction, according to a survey by the Tax Institute at H&R Block. Seventy percent were not aware of recent legislative changes that could affect their return next year. Seventy-eight percent didn't know for certain which tax bracket they were in. In addition, 84 percent of those surveyed did not know they could go back three years to amend a return.
Seventy-six percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. Instead, one of the top traits chosen by survey participants was location.
Many of the survey participants had low opinions of the U.S. tax system. A whopping 92 percent did not describe the U.S. tax system as "very fair." Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to taxpayers both older and younger. Only 32 percent of those between 35 and 54 said the tax system was fair or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 or older.
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