Wednesday, January 14, 2009

How much do you know about your taxes?

In an article on, H & R Block did a survey of 1000 US Adults on how well they know their taxes. Many can not even answer basic tax questions. Almost 60% did not know the difference between and tax credit (which lowers your tax liability dollar for dollar) and a tax deduction (it lowers your liability by a percentage.

Location was cited as the most popular reason for picking a tax preparer, not how well a preparer was knowledgeable in tax law.

Most do not know which tax bracket they are in and 83% did not know they could go back and amend a tax return for the 3 prior years if errors were made in the return.

A tax payer should never prepare their own tax return. There is way too much involved with it. A simple calculation error or missing a credit or deduction can cost you money, time and a lot of hurt dealing with the IRS. Find a reputable tax preparer and get it done right.

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