You see these headlines everywhere around tax season: “Tax facts the government doesn’t want you to know!” “These tax loopholes will BLOW YOUR MIND!” “Avoid taxes altogether with this one simple trick.” Everyone thinks there are secrets about your tax return that only a select few know about, and now you’re one of them.
There may be some things about your taxes you don’t know, but the following myths are definitely not those. In fact, they’re for the most part complete and utter BUNK.
Myth Number 1: “So now I have a home office an- WHAT DO YOU MEAN I’M BEING AUDITED?!”
Hold your horses, this is not entirely true anymore. While having and declaring a home office may put you a bit more under the microscope, it doesn’t increase your risk of an audit as much as you would think. Just make sure that whatever you claim is in line with what the IRS identifies as home office needs. That’s right, you’re going to have to take that cheese log off of your deductions. Sorry…
Myth Number 2: “I go to college, I don’t need to pay taxes. Duh.”
This one is only half way true, college babies. If you earned less than 9k during the tax year, you are exempt. However, and this is a big “However”, if you work for an employer who withholds taxes, it’s still probably in your best interests to file your taxes anyway, if only to get that “my tax return this year was $00.58 pls help” Insta pic.
Myth Number 3: “I have an eBay business, but it’s the internet, so it’s not REALLY a business.”
Watch it, buddy. You’re going down a dangerous path a lot of people who sell online stuff go down. If you’re making more than $400 on your side hustle, you HAVE to report it, lest you get stuck with that “A” word we are all trying to avoid.
Myth Number 4: “It doesn’t say anywhere that I HAVE to file my taxes!”
Just because the 1040 form instruction book describes the tax system as “voluntary”, doesn’t mean you can curtail your duties as an American citizen. Don’t try to get cute with the IRS people, they’ll slap you with that “A” word we talked about before.
Myth Number 5: “My cat may as well be a kid. Let’s add you in as a dependent, Capt. Paws!”
Myth Number 6: “Talk to my accountant, it’s not MY fault!”
Your responsibilities with your returns don’t end if you hire an accountant. No matter how good your guy is, you should ALWAYS check your forms to make sure everything is in tip top shape. They won’t be the ones in trouble if there’s an issue, the IRS is coming for you and you only.
Myths busted? Certainly. Make sure you avoid a lot of these by going to your local One Stop Tax location and letting the professionals handle your return. Can’t be bothered? THEN OPEN YOUR OWN FRANCHISE THEN, GEEZ.
Tags: tax facts, tax myths, tax prep Posted by