Don’t Let These Common Misunderstood Tax Facts Hurt You
Don’t let these common misunderstood tax facts hurt you.
So how much do you know about taxes? Or more importantly, how much do you think you know? There are a lot of tax facts out there, and just as many tax misconceptions. Unless you’re a tax professional, chances are there are a lot of things about taxes that you might not be aware of, and other simple misunderstandings that could hurt you just as much.
For starters, everyone loves to get a big tax refund. However, that’s not necessarily the best thing. A big refund means that you have allowed the IRS to hold that money for you all year, instead of having it your disposal for whatever you might need, or use it for. It’s much better to actually get a modest refund.
While tax deductions are great, tax credits are where the real money is. Deductions decrease your taxable income, which is nice, but credits can actually reduce your taxable income and in many cases increase your refund.
While it might seem like a no-brainer, the fact is there are still some people that think you don’t have to report all your income. However, you are responsible to report income from all sources, including payroll income, capital gains, gambling winnings, prize money and hobby or self-employment income.
Another misconception people have has to do with filing an extension. Taking this measure not only allows you more time to file your taxes, but also if you work it out with the IRS you can also get an extension on how long you have to pay off your tax debt.
Lastly, while many people fear being audited, your chances of actually being chosen for an audit are quite low. Additionally, you can reduce your chances of being audited by keeping careful records, reporting everything and avoiding any errors in your return. http://money.cnn.com/2017/04/06/pf/taxes/tax-misunderstandings/
We hope you found this article about “Don’t Let These Common Misunderstood Tax Facts Hurt You” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the s
Will One of Trump’s Top Tax Breaks Get the Axe?
As the new president and his administration continue to tout their big plans for a major tax overhaul in the U.S., it remains to be seen if the proposals will get passed in the House and Senate. While both branches of government are all for tax code reform, there are still differences that must be…
The Best Dining Experiences Around the Globe
The Best Dining Experiences Around the Globe Looking for some of the best dining experiences from around the world? Obviously, this list will not include any of your standard chain restaurants that serve burgers and chicken wings, not that there’s anything wrong with those options. However, for those with a more distinguished food palate and…
Is There Still Time to File My 2016 Taxes?
Is There Still Time to File My 2016 Taxes? The tax deadline this year has obviously passed, and most people have pushed the subject of taxes to the furthest part of their minds. However, for those who still haven’t filed a return, the tax season continues. That begs the question: is there still time to…
Accountability in Four Easy Steps
Source: Partner Insights The following includes excerpts, reproduced with permission, from an article by Marty Stanley, president of Dynamic Dialog, Inc. Accountability hasn’t been considered the “next big idea” because it’s not “flashy.” There are no “bragging rights” about implementing an accountability process. After all, accountability means people would need to change, rather than a system or process…