How much do you know about federal income taxes? If you’re like a lot of Americans, you’ll have the right answer about half the time. A recent survey by NerdWallet asked more than 1,000 people a series of questions. Here’s a sampling:
- If your exemptions and holdings are correct, your refund should be? (As close to $0 as possible.)
- When can you adjust your W-4 at work? (Anytime.)
- Is money you put in a Roth IRA pre-tax or post-tax? (Post.)
- What can you do with a flexible spending account (pay medical and child care costs tax-free).
- Are 529 Plans deductible? (No, but the plan’s returns are tax-free.)
The average score was 51 percent correct answers. The low level of tax knowledge is probably not surprising. A lot of people’s eyes simply glaze over when talking about taxes. Deductions and exemptions, tax credits, withholding and adjustments to income are terms that are not exactly self-explanatory. And when you get into depreciation and expenses and capital investments, it gets even murkier.
If you are a client of Ketel Thorstenson LLP, you need not worry. Whether you’re working with one of our Rapid City tax professionals, one of our Spearfish tax accountants or a Ketel Thorstenson CPA in Williston, we have the experts who can walk you through it.