7 Taxpayer Misconceptions
May 14, 2014 10:50 AM
7 Taxpayer Misconceptions
Tax season often reveals a host of misconceptions taxpayers have about the Tax Code. Here's a selection of examples submitted by readers. -- Accounting Today
<b>Theres a maximum age for the income tax.</b>
How old do I have to be before I can stop paying taxes?is apparently a frequent question from clients, but no matter how old you get, you are always subject to the income tax.
<b>If theres no document, theres no income.</b>
Income is income, regardless of whether the taxpayer or the IRS received an information reporting form about it.
<b>I need to look presentable for clients, so </b>
Except with certain work-related uniforms and very specific occupations, needing to look good doesnt mean you get to deduct gym or spa memberships, health foods, or nice clothes.
<b>E-filing is a trick to rob me.</b>
Apparently, theres at least one client out there who insists on paper filing because they believe that if they e-file, the IRS will have access to their bank account and will steal their money.
<b>Private school tuition is deductible.</b>
Nope.
<b>Ill deduct the maximum mileage.</b>
There is no maximum or minimum mileage just how far you drove.
<b>I had clients at my wedding, so I can deduct it!</b>
While there are rumors that a wedding planner was able to deduct some expenses because she really was able to use her wedding for professional purposes, having clients attend a non-professional event, -- whether its your wedding, your birthday or your childs birthday does not make it deductible.
