Did you know that there are more than 1.2 million tax preparers in the financial industry of the United States of America? Hiring the best tax preparer is a great move for your finances if you’re self-employed or if you have a bunch of back taxes that you’re going to owe the IRS.
The best tax preparation will make sure that your finances are in good order and make life much easier on you as a whole, especially when it comes to paying the IRS. Unfortunately, there are a number of myths out there that surround tax preparation and could keep you from finding the best tax preparer for your needs.
Luckily, you’re in the perfect place to learn about the truth behind these tax preparation myths. Keep reading this article to learn the truth today.
Tax Preparers Expect and Want Tons of Documents
The best tax preparer doesn’t want a bunch of receipts dumped on their desk with the expectation of providing you with an answer. If you plan on hiring someone to help with your tax preparation then it is on you to provide them with an organized report for them to use when preparing your taxes.
Ideally, you’ll take the time before delivering this report to the tax preparer to total all of your relevant categories as this makes the life of the tax preparer much easier. It is important that you remember that you’re paying the tax preparer to help you put your tax return together rather than getting your accounts and books organized.
Filing Taxes Is Voluntary
There is another myth floating around that paying taxes in the United States is a voluntary action that you’re not required to do. There is no excuse not to file your taxes in the United States of America and there are serious consequences that you’ll face if you fail to.
The only voluntary part of filing taxes in the United States is that it is up to you to determine how much money you’ve made over the past year and how much money you owe on your taxes. There is nothing that states that you have the option to not file your taxes at all. To avoid the serious penalties you’ll face, you should hire a tax preparer at https://www.taxfyle.com/tax-preparation-outsourcing.
You Can Claim Pets as Dependents
Another common myth when it comes to filing and preparing your taxes is that you’re able to declare your pets as dependents in order to get the tax deductions that come with dependent children. Even though this is clearly a myth, people try to claim their pets as dependents each year.
Even the best tax preparation can’t help you when it comes to getting your pets on your taxes as dependents. Dependents can only e humans so don’t expect any kind of tax break because of the number of pets that you have in your home.
Students Don’t Pay Taxes and Don’t Need the Best Tax Preparation
This is important to know about if you’re a student that is enrolled in college. There is an unfortunate myth that students don’t need to pay taxes each year and this myth couldn’t be further from the truth. If you’re a student as well as a dependent then you won’t need to file and pay any taxes as long as you’ve earned less than $12,000 over the past year.
If you have an employer and you made less than that $12,000 then you should still move forward with filing your taxes. Odds are that your employer held some of your money out for tax purposes which means that if you file your taxes you’ll get a nice tax refund from the IRS that you can use on whatever you’d like.
Getting Home Office Deductions Will Lead to an Audit
Another common myth when it comes to tax preparation is that attempting to get deductions related to your home office will lead to the IRS conducting an audit of your finances. The thought of being subject to an IRS audit is enough to scare the vast majority of people away from listing things that are legitimate for tax deductions.
In the era of COVID-19, home offices are more common than ever. If you claim to have a home office then you’ll no doubt face more scrutiny than a citizen that doesn’t claim one, but you won’t be subject to an automatic audit when you owe the IRS. You shouldn’t be afraid to claim a legitimate deduction when getting the best tax preparation.
The Money You Make Online Is Tax-Free
Anyone that tells you that the money you make online is free from all taxes is doing you a disservice. This is a flat-out lie and it could get you in a ton of trouble when it comes to paying back taxes and paying the IRS. The way that the IRS views income that you make online is no different than income that you make in any other fashion.
It doesn’t matter if you sell or provide a service or if you’re selling arts and crafts that you make as a side hustle, you need to file taxes for this money if you make more than $400 per year doing it. Make sure that you understand the truth behind this myth, otherwise, you’ll find yourself owing a hefty penalty to the IRS for failure to disclose and file taxes for this income.
The Tax Preparer Is Liable for Mistakes
It is always a great idea to invest in the best tax preparation. You need to understand that the accountant or tax preparer is not responsible for mistakes with your taxes. No matter who prepares your taxes, you’re ultimately responsible for mistakes. Always double-check your taxes before filing them.
Now You’re Ready to Find the Best Tax Preparation Today
Getting the best tax preparation is a great investment when tax time rolls around each year. It will save you from paying money to the IRS that you could otherwise save or invest. It will also help you pay any back taxes and make filing your taxes a much easier task.
For more helpful articles, check out more of our blog today.
