Busted! Don’t Believe These Tax Myths!

Whether you’re employed or self-employed, everyone with a taxable income owes taxes to the government. Paying your taxes is a civic responsibility and a requirement of the law, and if you fail to do so, you could face penalties, fines, or worse, get imprisoned. Therefore it’s essential that you get yourself prepared before the tax season starts. Consult with a reliable financial advisor if you don’t understand how tax systems work. These professionals will make the process as simple as possible and help you save time and money.

However, there’s a lot of confusion around tax filing, so it’s no wonder there are many misconceptions about the tax laws. Believing in these false facts could land you in loads of trouble with the Internal Revenue Service. To help you steer clear of these misconceptions, Speedy Tax Preparation & Bookkeeping Service has debunked some of the most widely believed myths about taxes.

Myth 1: When you get old, you don’t have to file taxes
This is entirely not true. The IRS doesn’t care about working status, just about income. If you’re over sixty-five and live alone without any dependents on an income of more than $11,850, you must file an income tax return. However, if part of your income comes from Social Security, make sure you do not need to include this in the gross amount. You can stop filing taxes only if your income comes solely from Social Security benefits, as taxed income does not include benefits. If you seem confused, consult an IRS representative or a local financial consultant if you have any questions about your situation.

Myth 2: It’s voluntary to file taxes
Many taxpayers misinterpret this myth because the Form 1040 instruction book describes the tax system as “voluntary.” The term voluntary refers to the system of allowing each individual to determine the correct amount of tax, complete the appropriate returns, and pay any tax due rather than have the government determine tax for them. If the system were involuntary, then the IRS would just send you a bill of what they think you should pay in tax!

Myth 3: Accountants or tax preparers are responsible for clients mistakes
If you make a mistake on your tax form resulting in you paying additional taxes, penalties, or interest, you will have to pay for these fees and not your tax preparer or accountant! Your tax return is your responsibility, so make sure not to omit any information from your end.

If you’re looking to steer clear of these myths, reach out to Speedy Tax Preparation & Bookkeeping Service. As one of the best tax preparers and bookkeepers in Elizabethtown, North Carolina, I have over twenty years of experience in the financial sector. I specialize in individual and personal tax preparation, C-corporation tax return preparation, s-corporation, LLC tax return preparation, bookkeeping, payroll services, and notary services for small or medium businesses and individuals. My tax preparation and bookkeeping services are extended to clients across Elizabethtown, Salemburg, Roseboro, Clinton, Garland, Harrells, Whiteville, Lake Waccamaw, Tar Heel, Bladenboro, Atkinson, Brunswick County, and the surrounding areas.

For a complete list of my services, please click here. If you have any questions about taxes and bookkeeping, I’d love to hear from you, please contact me here.