A new study shows that while an overwhelming majority of Arizonans who file their own taxes believe they have taken advantage of every deduction, credit or savings possible, more than half of those admit they’re not tax-smart when investing.
The study from BMO Harris Bank showed that 56 percent of Arizonans do not hire professionals to do their taxes, and 87 percent of those said they’re confident with the job they did.
Yet BMO Harris Spokeswoman Carey Allen said a majority of those admitted they don’t understand important tax-smart investment solutions designed to help reduce their liabilities.
“Only 57 percent really felt that they understood how capital gains are taxed and only 58 percent of the respondents really understand how dividend income is treated from a tax perspective,” she said.
She said hiring a professional can help ensure that taxes are done correctly and efficiently.
The study also looked at where Arizonans plan to spend their tax returns.
“Nationally, 42 percent of the Americans surveyed are planning to use their refund to pay household bills or reduce their debt and that compares with 37 percent of the Arizonans surveyed,” Allen said.
Arizonans also trailed the national average when it comes to using their refund toward savings and investments by about 4 percent. Conversely, Arizonans said they would use their returns to fund vacations or purchase leisure items at a higher margin than the rest of the country did.
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Water tips to save money, help save the Earth
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon
- What you need to know about Alzheimer's disease in Arizona
- Spring clean your windows like a pro with these 8 tips
- 7 films that should have won best-picture Oscars
- New plumbing technology saves money and improves your home
- Survey shows Arizona CFOs optimistic about 2016
- How chronic pain can affect your love life
- 5 potential warning signs about your child's development