As tax time approaches us, it important to understand fact from myth. Millions of taxpayers can sometimes misconstrue the written information provided by the IRS. Many Taxpayers start to believe out and out rumors on allowable tax deductions. It’s always best to have a certified tax preparer to take you through what is fact vs. myth. This way, you will be protected from IRS scrutiny if you file your taxes with unfounded write off. Here’s a look at the top five myths on deductions for Taxes.
Filing Taxes is Voluntary
Many people feel this way because the Form 1040 instruction booklet refers to our tax system as voluntary. Actually we are all bound by law to file our taxes. The world “voluntary only refers to the fact that we each voluntarily determine how much we owe. However, the IRS determines accuracy.
2. The IRS has to file a return for you
This is another myth very much like the “voluntary myth. Again the use of language has caused the misconception. In the instruction booklet it states “the IRS can compile a return for you if they suspect fraud. As mentioned earlier, the IRS determines accuracy and if they suspect fraud the WILL compile a return for you. However, the initial return does have to be done by you.
3. Students don’t have to pay taxes
This is a partial myth. When a student is a dependent of someone else, most likely a parent. They are not required to pay taxes if the earned less than 12,000 (2018).
4. You can claim pets as a dependent
Absolutely not true. Pet parents think of their animals as children/dependents. However, they are not humans and there are not deductions for the
5. Money made on the Internet is not taxable Completely False
Completely False! ANYONE doing business whether on the Internet or not have to pay taxes
If you’re in need of a Tax Preparer, Enrolled Agent Sandra King at King Financial Services can help you with everything in preparing, completing and filing your Tax Returns. King Financial Services are the experts in Tax Preparation in any state across the country. King Financial Services is uniquely qualified to prepare your taxes. As Enrolled Agents they are trained by the government (Dept. of treasury) and have to maintain licensure with ongoing training. Use the very best for your taxes. Contact King financial services today.