Phillip Statler, EA · Statler Financial Services Inc
TEST YOUR TAX KNOWLEDGE IN 2 MINUTES
Most of us assume we understand taxes well enough.
But between changing rules, overlooked details, and common misconceptions, there's often more to the story than we realize.
This quick, 7-question quiz is a simple way to test what you know, uncover a few surprises, and see how everyday tax basics connect to your broader financial picture.
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QUESTION 1
HOW MUCH OF THE FEDERAL GOVERNMENT'S REVENUE CURRENTLY COMES FROM INDIVIDUAL INCOME TAXES?
A. 35%
B. 49%
C. 61%
D. 70%
Correct Answer: B. 49%¹
Individual income taxes are the single largest source of federal revenue, making up about 49% of total government receipts according to the U.S. Treasury. That's nearly half – and more than all corporate and excise taxes combined.
QUESTION 2
TRUE OR FALSE: YOU CAN CLAIM BOTH THE STANDARD DEDUCTION AND ITEMIZED DEDUCTIONS ON THE SAME TAX RETURN.
A. True
B. False
Correct Answer: B. False²
You have to pick one: either take the standard deduction (the default option) or itemize your deductions, if that saves you more money. You can't do both on the same return.
QUESTION 3
WHICH OF THE FOLLOWING DOES NOT REDUCE YOUR TAX BILL?
A. Donating to a qualified charity
B. Selling investments at a loss
C. Contributing to a traditional 401(k)
D. Filing for a tax extension
Correct Answer: D. Filing for a tax extension³
Filing for an extension gives you more time to submit your return, but not more time to pay. You still need to estimate and pay your taxes by the deadline to avoid penalties or interest.
QUESTION 4
TRUE OR FALSE: FEDERAL INCOME TAX BRACKETS ARE ADJUSTED EACH YEAR FOR INFLATION.
A. True
B. False
Correct Answer: A. True⁴
Each year, the IRS adjusts federal income tax brackets, along with many deductions and thresholds, to reflect inflation and other updates. This means the income ranges for each tax rate typically change from one year to the next. It also keeps taxpayers from moving into higher brackets just because of inflation.
QUESTION 5
HOW LONG DOES IT TYPICALLY TAKE THE IRS TO ISSUE MOST FEDERAL TAX REFUNDS IF YOU FILE ELECTRONICALLY AND CHOOSE DIRECT DEPOSIT?
A. About 21 days
B. About 31 days
C. About 61 days
D. About 90+ days
Correct Answer: A. About 21 days⁵
For most taxpayers who e‑file and select direct deposit, the IRS says refunds are typically issued in about 21 days or less after the return is accepted. Paper returns or returns that require review may take longer.
QUESTION 6
TRUE OR FALSE: THE IRS MAY CONTACT YOU BY TEXT OR SOCIAL MEDIA ASKING YOU TO VERIFY TAX INFORMATION OR NOTIFY YOU ABOUT A DELINQUENCY.
A. True
B. False
Correct Answer: B. False⁶
The IRS will not contact you out of the blue by text message or social media to request personal or financial information. Official notices are typically sent first by mail, and electronic messages are only used with your prior consent for specific purposes, not for delinquency notices or verification requests.
QUESTION 7
AFTER YOU FILE YOUR FEDERAL TAX RETURN, HOW LONG DOES THE IRS GENERALLY RECOMMEND THAT YOU KEEP YOUR TAX RETURNS AND SUPPORTING DOCUMENTS?
A. Until you get your refund
B. At least 1 year
C. At least 3 years
D. At least 5 years
Correct Answer: C. At least 3 years⁷
The IRS generally recommends that taxpayers keep their tax returns and supporting documents for at least three years after filing. That's the period during which the IRS can typically audit your return or assess additional tax. In certain situations, like claiming a loss or if income is significantly underreported, you may need records longer, but three years is the standard baseline.
SMALL GAPS IN TAX KNOWLEDGE CAN QUIETLY SHAPE BIGGER FINANCIAL DECISIONS OVER TIME.
IT'S OK NOT TO KNOW EVERYTHING ABOUT TAXES. BUT THE MORE YOU KNOW, THE MORE CONFIDENT YOU CAN FEEL.
So, how'd the quiz go?
Surprised by what you nailed? Or what you didn't?
Whether you aced it or guessed your way through, here's the good news: there's always room to grow. Tax literacy means knowing where to focus your questions, even when you don't have all the answers yet.
The more confident you get with tax basics, the more likely you are to spot opportunities, reduce mistakes, and make smarter decisions at every stage of the year.
That can mean more money in your pocket, fewer surprises at filing time, and stronger long-term results.
But here's the thing. Tax rules, deductions, and forms are always changing. What's true this year might not apply the next. That's why staying curious and connected is so valuable.
Not sure what to do next? Start by knowing what you don't know. And when you're ready for answers or just want to talk it through, I'm here to help.
Let's keep growing that tax confidence.
Sincerely,
Phillip Statler, EA
Statler Financial Services Inc
P.S. Sign up for my emails. My subscribers get my ideal insights.
Phillip Statler, EA
Statler Financial Services Inc
Not receiving our newsletter?
Get insightful info on finances and more in your inbox every month with the
VISUAL INSIGHTS NEWSLETTER
Phillip Statler, EA
Statler Financial Services Inc
Sources
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Fiscal Data, 2026 [URL: https://fiscaldata.treasury.gov/americas-finance-guide/government-revenue/]
-
Internal Revenue Service, 2024 [URL: https://www.irs.gov/newsroom/deductions-for-individuals-the-difference-between-standard-and-itemized-deductions-and-what-they-mean?utm_source=chatgpt.com]
-
Internal Revenue Service, 2025 [URL: https://www.irs.gov/filing/get-an-extension-to-file-your-tax-return]
-
Internal Revenue Service, 2025 [URL: https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill]
-
Internal Revenue Service, 2025 [URL: https://www.irs.gov/newsroom/tax-time-guide-use-wheres-my-refund-tool-to-track-refund-status]
-
Internal Revenue Service, 2025 [URL: https://www.irs.gov/help/report-fraud/report-fake-irs-treasury-or-tax-related-emails-and-messages]
-
Internal Revenue Service, 2025 [URL: https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records]
Content prepared by Snappy Kraken.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor before investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
Investment advisory services are offered through Second Half Financial Partners, LLC, a separate but affiliated entity that is a SEC Registered Investment Advisor domiciled in the state of Florida, and appropriately registered in all states in which it conducts business.
This guide is provided for informational purposes only; it is not designed as advice for an individual's personal situation. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. Our firm does not provide, and no statement contained in the guide shall constitute, tax or legal advice. All individuals are encouraged to seek the guidance of a qualified professional regarding their personal situation.
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Phillip Statler, EA
Statler Financial Services Inc
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