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Tax Myths To Avoid This Year!

The ever-changing tax laws can leave you feeling confused. You may feel overwhelmed with questions, and it is natural to ask everyone in your life how to handle your finances. However, be careful of who you ask for tips because most of the advice you receive from non-experts may be more myths than facts. 

There is a lot of misinformation out there– whether you are reading about taxes on Google or asking your uncle about it. It is good to have your questions answered and your doubts cleared by a San Mateo tax planning and preparation expert. Blindly following someone’s bad advice can get you into hot water. It helps to know the most common tax myths so you can protect yourself. 

Tax myths to avoid this year 

  • If you cannot afford to pay taxes, do not file a return. 

Some people are not able to pay their taxes to the government after they have filed their returns. This may happen for various reasons, including the following: 

  • There were significant changes reflected on your tax return. 
  • You did not withhold enough on your W-4.
  • You had income that wasn’t subject to tax withholding. 

If you owe taxes, you have to file your taxes, even if you cannot afford to pay immediately. Contact the IRS; you might have more payment options than you realize. 

  • Filing taxes is voluntary. 

Although this may seem obvious, there is a large number of people who believe filing taxes is “voluntary” and that they do not have a legal obligation to file. This is not the case. This myth has circulated due to the fact that the Form 1040 instruction book describes the tax system as voluntary. However, in reality, the term voluntary refers to the fact that everyone is responsible for determining the amount of taxes they owe. 

Not filing your taxes is not an option. These minor errors in understanding the tax system can cost you later. This is why it is recommended to get advice from an expert once. 

  • Students do not have to pay taxes. 

Just because you do not earn a lot does not mean you are not required to pay income tax. Typically, students in San Mateo earn a lot less than people who work real 9 to 5 jobs and do not have enough income to pay taxes. However, whether you need to file taxes depends on how much income you generate, not on whether you are a student. A student earning thousands of dollars a month through their YouTube channel has to pay taxes. 

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