Slideshow 7 Taxpayer Misconceptions

Published
  • May 14 2014, 10:50am EDT

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>There’s 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.

Content Continues Below


<b>If there’s no document, there’s 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 doesn’t 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, there’s 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.

Content Continues Below


<b>Private school tuition is deductible.</b>

Nope.

<b>I’ll 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 it’s your wedding, your birthday or your child’s birthday – does not make it deductible.