Taxes | July 21, 2026
Americans Don’t Know Their Taxes: A Third Fear They’ve Missed Deductions or Credits
These issues may explain why one in four (25%) Americans say tax season negatively impacts their mental health.
Millions of Americans lack confidence in their understanding of the U.S. tax system, according to new research commissioned by Sigma Tax Pro. And many workers are paying for it in stress, filing errors, and missed deductions.
The survey of 2,002 U.S. adults found that 45% of Americans admit that they do not understand the tax process, nearly a third (30%) say they would not feel confident filing their taxes without help, and more than one in five (22%) say they are not sure what counts as taxable income.
Concerns about errors are also widespread. More than one in four Americans (27%) worry about getting into trouble for filing incorrectly, and 25% worry that they may have made mistakes on previous tax returns. Another 23% admit they have made mistakes on their taxes in the past.
The findings also suggest these knowledge gaps are hitting Americans in the pocket. Nearly a third (30%) believe they have missed out on deductions or credits they were eligible for, costing potentially thousands in lost income. And anxiety around filing may be driving some to put it off altogether, with 25% admitting that they wait until the last minute to file.
Taken together, these issues may explain why one in four (25%) Americans say tax season negatively impacts their mental health.
Ian Gardner, Director of Sales and Business Development at Sigma Tax Pro, said: “Taxes affect virtually every working American. Filing is one of the most important financial tasks of the year, and yet our research shows that a huge number of taxpayers still find the system difficult to navigate.”
“When taxpayers lack confidence in their understanding of the rules, it creates unnecessary stress, increases the likelihood of mistakes, and means many people end up paying more than they should, or worrying that they have. Whether someone files independently or works with a professional, having access to clear, reliable guidance throughout the year can make a significant difference, both financially and to peace of mind.”
Sign in to get access to this free resource, and all of our whitepapers and reports.
Download this content today!
Register Now Already registered? Click here to Log In
Tags: deductions, Income Taxes, IRS, mental health, tax credits, Taxes
CAS July 21, 2026
Rethinking the RMD: The Giving Strategy Hidden Inside Your Client’s IRA
For clients in these situations, a QCD may be meaningfully more efficient than a cash gift paired with an income tax deduction.
Taxes July 21, 2026
Poll Finds Wording of Florida Property Tax Amendment Could Set Its Fate
The fate of the proposed constitutional amendment to roll back property taxes on primary homes could be determined by how it’s pitched to voters—and suggests certain arguments could imperil its passage.
Taxes July 20, 2026
Mike Lindell Had Wages Garnished, IRS Lien on Texas House in 2024
The Republican candidate for Minnesota governor said in sworn depositions that a failed COVID-19 investment compounded his financial struggles. He insists the tax dispute will be resolved.
Taxes July 20, 2026
Trump Issues 50% Tariffs on Canada Ahead of Gordie Howe Bridge Opening
President Donald Trump on Monday signed orders imposing new 50% tariffs on Canada, according to senior White House officials, just days before the scheduled opening of the Gordie Howe International Bridge.