Poll: 26 Percent Don't Even Know a Tax Bill Was Passed

By:
Chris Gaetano
Published Date:
Feb 21, 2018
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With the new tax bill dominating the minds of CPAs across the country, it may surprise them to know that, according to a recent poll, 26 percent of Americans don't even know that there was a bill in the first place. The poll, conducted by personal financial planning site NerdWallet, quizzed some 2,000 U.S. adults on legal and illegal tax-saving strategies, tax bracket knowledge, concerns about filing taxes incorrectly and understanding the new tax bill. What it found was that, even among those who knew a tax bill existed, people don't know all that much about it.

Only 49 percent know that the new tax law has changed the income tax brackets, and 50 percent know they're changing but don't know how it will affect them personally. Only 45 percent know that the standard deduction amounts changed, 43 percent know that the individual mandate penalty was repealed, 40 percent know about the state and local tax deduction cap, 38 percent know about the elimination of personal exemptions, 37 percent are aware of the increased child tax credit, 33 percent know about the changes to the mortgage interest deduction, 23 percent have knowledge of the medical expense deduction changes, 21 percent know of the home equity interest deduction changes, 11 percent know about the moving expense deduction, and only 8 percent are aware of the 529 plan distribution rules. 

The poll also found that some people knowingly admit to doing illegal things on their taxes. The most common, at 8 percent of overall poll respondents (though only 6 percent of boomers), was not including tips and other income received under the table, followed by overstating the value of donated items or cash, at 5 percent all around, followed by not reporting gambling winnings, at 4 percent (though 7 percent of millennials said they did this). 

In other words, it would seem that there are many people across the country in dire need of a CPA. 

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