A Jacksonville, FL tax lawyer can confirm that there are many misunderstandings about filing taxes. If you believe certain untruths about taxes, you may file incorrectly and even be at risk of an audit. You definitely do not want to deal with that kind of stress. Here are some common tax myths that you shouldn’t believe.
- Restaurant tips aren’t taxable income. Many restaurant workers, including servers and bartenders, receive tips. Some of the workers do not think that they have to claim these tips on their taxes. They may think that if they are given cash directly, they can just pocket the money and not pay taxes on it. However, if you receive tips while working at a restaurant, the IRS requires you to report your tips.
- It is simple to write off gambling losses. It can definitely be disheartening to lose a lot of money gambling. However, that does not mean that you can write off all your losses when you do your taxes. In fact, you are only allowed to claim deductions if your losses are equal to less than your winnings.
- Filing your taxes online will trigger an audit. While this may have been true many years ago, it is not the case today. Tax e-filing software has come a long way in recent years. When you file your taxes online, the software will identify errors and require you to fix them before moving on.
- You can claim pets as dependents. This is another common myth that a Jacksonville tax lawyer years. Although you might love your pets like family, you are not allowed to claim them as dependents on your taxes. However, people still try to claim their furry family members as dependents every year during tax season. If you try to claim your pets as dependents, the IRS may audit you.
- If you do not make much money, you will not get audited. It is true that wealthier individuals are more likely to get audited than those with modest incomes. However, that does not mean it is not possible to get audited. Even if you do not make a lot of money, the IRS may still audit you if there are red flags.
- You don’t have to file taxes on money you make online. This could not be farther from the truth. While it is great that you might earn a side income from selling a product or services online, you still have to pay taxes on it.
- Filing taxes takes too much time. Many people lead busy lives, but that does not excuse anyone from skipping out on their taxes. Filing taxes might not be the most exciting task, but it is a necessary one. If you are truly too busy to file your own taxes, you can always leave it up to a Jacksonville tax lawyer. He or she can complete your taxes in a timely manner, reducing your stress.
Don’t miss out on an opportunity by not having your taxes filed early. Instead, contact a Jacksonville tax lawyer today to ensure you are well-prepared for tax season and beyond.
