Tax Confusions Reign in America

February 23, 2018 Taxation in USA

tax filing usaWASHINGTON D.C. – American taxpayers are confused by their tax obligations, with misunderstandings on what is legal and what isn’t, and even confusion on what their own tax brackets are.

The results of a survey conducted by NerdWallet has shown that many American taxpayers are unaware of the country’s tax rules or even their own tax situation.

The survey results were compiled from the responses provided by 2 000 US adults taxpayers.

It was found that approximately half of all the survey respondents didn’t know their own tax bracket.

Approximately a quarter of the respondents also didn’t know of the new tax bill which was signed into law in 2017.

Along with not knowing their own tax situation, the taxpayers also believed that many legal tax breaks were illegal, such as making extra mortgage payments, delaying income, and opening an IRA.

Further, some taxpayers even believed that illegal tax actions were allowed, with 6 percent thinking its fine to not declare “under the table” income and 4 percent believed that it was allowable to overstate the value of donations they receive, along with a number of other misconceptions.