3 Common Tax Myths That Can Hurt Your Refund This Year

Core Points - Tax season often leads to the spread of common tax myths that can negatively impact the filing process and returns [1] - Consulting a tax professional is recommended for specific inquiries regarding individual situations [1] Group 1: Common Tax Myths - The belief that one shouldn't file taxes if they don't owe money is misleading; filing is based on income earned and minimum thresholds [2][3] - The IRS mandates filing a tax return if gross income is $15,750 or more for single filers, or $31,500 for married couples filing jointly under 65 [3] - Filing taxes can be beneficial even if income is below the threshold, as it may qualify individuals for refundable tax credits like the Earned Income Tax Credit (EITC) or Child Tax Credit [4] Group 2: Misconceptions About Refunds - A large tax refund does not necessarily indicate that taxes were filed correctly; it may suggest excessive withholding from paychecks [4][5] - The funds that lead to a large refund could have been better utilized throughout the year, such as saving or investing [5] Group 3: Work-Related Expenses - Despite changing tax laws, individuals can still deduct eligible work-related expenses for small businesses or freelance work [6] - Failing to claim these deductions can significantly affect tax refunds or increase tax liabilities [6]