IRS taxes have been confusing Americans since the beginning of time. Once you start to understand, the rules change. Here is a look at 12 tax myths and the facts behind them.
Myth #1: Filing taxes is voluntary.
Fact: Some official tax forms mention “voluntary” within instructions, however, what that means is that taxpayers are allowed to figure out what they owe vs the government doing it for them.
Myth #2: Electronic means you’re more likely to be audited.
Fact: False. Pretty much everyone files online. The main reasons you might be audited is due to bad math or underreporting your income.
Myth #3: Filing for an extension makes it more likely I’ll be audited.
Fact: False. The main reasons you might be audited is due to bad math or underreporting your income.
Myth #4: Getting an extension means more time to pay the tax bill.
Fact: False. The extension only gives you more time to file your return. You still have to pay anything you owe by April 15.
Myth #5: I just got married so we have to file jointly.
Fact: You don’t. You can be married and file separately. The IRS cuts you a break on your taxes when you file together. There are certain situations when filing separately makes more sense. Just call Jack to find out what makes sense for you.
Myth #6: I am a student so I don’t have to file.
Fact: Not necessarily. Being a student really doesn’t have anything to do with whether you need to file a tax return. It all depends on your income. If you had any federal taxes withheld on your paychecks, you should file because you may get a refund.
Myth #7: I am unemployed so I don’t have to file.
Fact: Not necessarily. If you received unemployment benefits, that is taxable income. You’ll get a 1099-G form with details and info on what was received.
Myth #8: I made a charitable donation so it is definitely deductible.
Fact: It is only deductible if you donated to a qualified organization.
Myth #9: All refunds are delayed.
Fact: The IRS claims that 90% of taxpayers will get their refund within 21 days of filing.
Myth #10: I should call the IRS.
Fact: Don’t. Calling will not make your refund come faster and you will waste a TON of time listening to bad hold music. If you are wondering where your refund is, the best way is to find out online.
Myth #11: The IRS just called me.
Fact: Probably not. The IRS RARELY calls. It is a fan of snail mail. If you get a call from someone claiming to be with the IRS and demanding money it is likely a scam. Hang up and report it.
Myth #12: You can claim pets as dependents.
There is a lot of bad information out there regarding IRS taxes. Just call Jack for all your tax needs and help.
Just call Jack