A new poll has revealed that more than half of Americans lack basic tax literacy, with only 2 percent demonstrating proficient knowledge of the tax system. The 2024 National Tax Literacy Poll, conducted by the Tax Foundation, highlights a significant gap in public understanding of taxes.
According to the report, this lack of understanding can have serious consequences, particularly for small business owners and the self-employed. Caroline Bruckner, a tax professor at American University's Kogod School of Business, warned that many Americans do not know how income tax is calculated or when payments are due.
Bruckner explained that the progressive nature of the US tax system is often misunderstood. She urged governments at all levels to invest more in tax education, stating that funding collection alone is insufficient. The poll also found that most respondents were unaware of basic concepts related to income tax filing.
For those needing help, Bruckner recommended the IRS's Volunteer Income Tax Assistance (VITA) programme, which offers free tax preparation for qualifying individuals. She cautioned against using generative AI for tax returns, noting it is not yet reliable for this purpose.
