During this time of year it can be difficult to keep up with all the new changes that come with tax returns. So often we hear myths that are actually quite believable. Are they just myths or truth? Here at Auto Credit Express, we don't want you to get into any trouble by misunderstanding what the correct tax return laws are. With the help of TurboTax we were able to debunk some of the more common myths that are rampant amongst taxpayers today.
Debunked Myths You May Have Heard
Filing taxes is voluntary.
Although this is probably one of the most fictitious myths on this list, there are a surprisingly large number of people that believe it is true. It comes from a misunderstood use of the word "voluntary" in the Form 1040 instruction book describing the tax system. However this does not say that filing your taxes is a voluntary action. It actually refers to the fact that each individual is responsible for finding the correct amount they are owed.
You can claim your pets as dependents.
Almost every pet owner sees their pet as a part of the family. However, while they do depend enormously on their owners for proper care, pets are simply not human. Claiming a pet on your return is fraud and can have severe consequences.
The IRS is legally obligated to file a return for you.
While the IRS does have the right to verify your return, sitting on the sofa and waiting for them to file your return will leave your rather disappointed. Like the first myth, this stems from a misunderstanding of the wording used. The IRS can and probably will compile a return for you if they suspect fraud. However that does not let you off the hook to file your own return yourself.
Students don't have to pay taxes.
This myth is actually half true. If a student makes less than $9000 during the tax year they don't have to file a tax return. However it is probably still in their best interest to file a return anyways. If their employer took out taxes, they are likely due a refund.
Money made over the internet is tax free.
It's not surprising that this myth is popular since many people have started online businesses recently. If they don't fill out a W-9, their income is never reported to the IRS. However the IRS still sees that income made online is no different than income made in an office. If you sell a product and make more than $400 on it, you are legally responsible for reporting that income; doing otherwise is fraud.
Check your sources
Often enough these myths are simply spread by word of mouth. If you check your facts you'll find that many are simply not true in any case at all. You deserve to have the truthful information from reputable sources. That's why Auto Credit Express partners up with the best automotive dealers in the US and Canada that specialize in bad credit auto financing. Despite what your past credit history is, we can help you drive away in the car, truck or SUV that you deserve! Apply Today!