Showing posts with label tax truths. Show all posts
Showing posts with label tax truths. Show all posts

Monday, January 25, 2016

Tax Myth or Tax Truth

There are a lot of things that people believe about their taxes that, unfortunately, are just plain wrong. One of the big ones, for example, is that receiving a sizable tax refund is a good thing. While it can feel good, it’s actually a sign that you’re having too many taxes taken out from your paycheck and that you need to get help from an accountant so that you can enjoy more of your money throughout the year.

Read on to learn about more surprising tax myths. If you find that you’ve fallen victim to any of them, then it’s definitely time to hire a tax advisor or to find a new one.   


Myth #1: Electronic Filing Leads to Auditing

Filing your taxes online is incredibly easy and convenient. Unfortunately, though, a lot of people steer clear of online filing because they’ve heard it will increase their chances of an audit.

According to the IRS, this is entirely untrue, and it’s also unclear where this myth came from. Online filing is, for all intents and purposes, the same as traditional filing, so there’s no reason filing online would make you more likely to get audited.

So, file online without fear. You only have to worry about an audit risk if you file late, make mathematical errors, or have a very high self employment income.

Myth #2: Americans Pay the Highest Taxes

A lot of grumbling goes on about “Uncle Sam” and how Americans have to pay more taxes than anyone else. In truth, though, America is not outrageous in terms of its taxation. Other countries are much worse!

Feel lucky you’re an American because the following countries all have higher taxation rates...and if your accountant tells you otherwise, something isn’t right:

l  Austria
l  Cuba
l  Belgium
l  Denmark
l  Japan
l  Netherlands
l  Sweden
l  United Kingdom

Myth #3: Your Accountant Knows All

We really wish this last one was a truth instead of a myth, but sadly, there are a lot of unscrupulous, ignorant people out there masquerading as “accountants.”

Hopefully you know that you ONLY need to deal with certified public accountants, but even then, not every single one is worth his salt. Look for an accountant who specializes in income tax preparation, who has impressive credentials, and who, above all else, puts your best interests first.


If you can remember that these are myths and look for an accountant who knows and understands the same, you should make out okay this tax season!  #TaxMyths