The time to start preparing for tax season is coming soon, and with it comes many a myth, These myths are pervasive enough to make people think that they are true so that further research is unnecessary. Following are these tax myths debunked and why:
Myth: Pets can be claimed as dependents.
Truth: No, pets cannot be claimed as dependents. The IRS only recognizes humans as dependents that can be used for deductions.
Myth: It’s voluntary to file taxes.
Truth: You have to file a tax return if you have income. The act of filing taxes is considered voluntary because you fill out the return, not the IRS.
Myth: The IRS will file a tax return for you.
Truth: It’s true that the IRS will file a return on your behalf if you don’t file, but it won’t do it in such a way to give you all of your deductions and credits. You may find you owe money if you go this route.
Myth: Home deductions mean an automatic audit.
Truth: Once upon a time this was mostly true, but home offices are much more common than ever. You increase your chance of an audit, but only marginally.
If you’re in the greater Phoenix area and looking for help when preparing for tax season, contact Phocus Compnaies today to talk to a tax expert.
