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