More than half of taxpayers don’t understand many basic personal finance questions about federal income tax returns as they relate to retirement, college savings and health care, a result not much changed from previous years, based on a recent survey of more than 2,300 adults given by personal finance site NerdWallet. That is a fail by academic standards.
See how much you know about taxes. [Ed. – Answers may be found at the source.]
- Is the money you put in a Roth IRA pretax or post-tax?
C) None of the above.
42% got the right answer.
- Can married couples file taxes separately?
90% got the right answer.
- When can you adjust your withholdings and exemptions on your W-4 with your employer?
A) Any time of the year.
B) Any time before Jan. 1 of each year.
C) After you receive your W-2 from the previous year’s earnings.
D) By the end-of-year tax deadline.
67% got the right answer.