Tax Myths You Should Stop Believing

When it comes to federal tax law, there are a lot of misconceptions and just plain lies floating around out there. Sometimes, well-meaning family members or friends can confuse you with these “un-truths,” and, if you listen to them, you could even find yourself making some serious tax mistakes.

Below, we’ll share some of the most common tax myths that you definitely shouldn’t believe. And, if somebody tells one of them to you, you should probably set that person straight!

However, these are just a few of many myths, so before you file your taxes, it’s always best to research EVERYTHING or take the easy route and ask a tax consultant for advice.

Myth #1: An Extension to File = More Time to Pay

Sometimes, for a wide variety of reasons, people are unable to file their taxes on time.

Luckily, if that ever happens to you, it is true that you can get an extension, under certain circumstances, and avoid the penalty for not filing by the tax deadline.

However, it’s imperative to understand that, if you are granted the extension, you’re still required to pay your taxes by the deadline!

If you don’t, you’ll be smacked with a “failure to pay” penalty that will grow each month, so make sure you get that money in!

Myth #2: Students are Automatically Exempt from Filing Taxes

It would certainly be nice if all college students were completely exempt from filing taxes, but unfortunately, that’s not how it works

Even if you’re a student, if you work, there’s a good chance you’re going to have to file taxes (sorry!). If you earned at least $10,150 in 2014, for example, then you were required to file taxes this year, student or not.

That number changes a little bit each year, but the basic rule is always the same: no matter who you are, if you make above a certain amount, you’re required to file taxes.

Myth #3: Married Couples Have to File Jointly

Just because you’ve tied the knot, that doesn’t mean you’re also required to “tie” your taxes together. Filing jointly can be smart because it often minimizes the amount of taxes you have to pay thanks to benefits and credits, but that’s not always true.

Sometimes, it’s in your best interest to file separately. A tax advisor can really help you and your spouse to determine the best possible way for the two of you to file.

As you can see, there’s a lot of misinformation surrounding tax law. That’s why it’s so important never to make a filing decision based on hearsay and why it’s always in your best interest to have a professional helping you come tax time.