Americans may like to talk about taxes but according to an annual survey by The Tax Institute, most can't answer even the most basic tax questions correctly.

 

Given the current economic climate -- and the need for taxpayers to claim every tax credit and deduction they're due -- the survey results are alarming.

The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.

 
Americans will spend more this year on taxes than food, housing and clothing combined. While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill -- their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials. This is not the time for taxpayers to guess on their own or see a tax  professional who isn't a tax expert. More than ever,  taxpayers need advice that translates into the biggest refund they're  allowed by law.

84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. There are do-overs in  taxes, but not enough people take advantage of that.  A  professional can look at an old return and see if there is additional money  left unclaimed. Approximately, 67 percent of previous years' amended  returns net taxpayers an average refund of $5,500.

Convenience is always important but knowledge means money. The U.S. tax code is always changing, which is why  taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer.

Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical -- especially in today's economy.

 

Americans should treat their tax bill like their bill of health, at times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve.

Best Regards,