Tax Time Tax Myths
Tax time is almost here. But thanks to a federal holiday this Friday in Washington D.C., you have until midnight, Monday April 18 to have your taxes filed. So with that in mind here are 5 common tax myths debunked.
Here are some of those common tax myths debunked:
1. I don't have to pay taxes: Umm, yes you do. Everyone has to file a return including students, children, people who make no money, and people who get paid only in cash.
2. My accountant is liable for mistakes: Most people who hire a tax professional assume that they will be responsible for any mistakes in filing your return. Even though they may have made a mistake, you, the tax-payer, are responsible.
3. I don't have any business expenses: If you have a job, you most likely do have business expenses that you can claim. Ask yourself what things you're paying for in order to maintain employment. For instance, if you have a certain uniform for work, you may be able to deduct dry cleaning expenses.
4. All of my home costs are tax deductible: This is one of the most common myths and it is not true. For instance, you cannot deduct home improvement or maintenance expenses.
5. Only the rich get audited: Don't think that just because you don't make so much money the IRS will leave you alone.