“Filing taxes is voluntary”: This statement is misleading. While it is true that the IRS does not have the authority to force you to file a tax return, the tax code itself is mandatory. If you meet the income thresholds, you are required to file a tax return. Failure to file can result in penalties and interest charges.
“Your tax preparer is liable for your taxes”: This statement is false. While tax preparers can be held liable for errors or fraud on your tax return, they are not responsible for the taxes you owe. The taxpayer is ultimately responsible for the accuracy of their tax return and the payment of any taxes owed.
“Students do not need to file taxes”: This statement is misleading. Whether or not a student needs to file a tax return depends on their income and other factors. If a student has earned income, they may need to file a tax return, even if they are still in school.
“You can choose your filing status”: This statement is false. Your filing status is determined by your marital status and other factors. You cannot simply choose your filing status.
“Remote employees can take home office deductions”: This statement is misleading. While it is true that remote employees may be eligible for home office deductions, there are specific requirements that must be met. The home office must be used exclusively for business purposes and must be the primary place of business.
“Gifts are considered taxable income”: This statement is false. Gifts are generally not considered taxable income to the recipient. However, if the gift is given in exchange for services or if it is a large gift from an employer, it may be taxable.
“Cash and Crypto are Not taxable”: This statement is false. Cash and cryptocurrency are both taxable. Income from cash transactions and cryptocurrency transactions is subject to tax.
“Filing an extension means you have longer to pay taxes”: This statement is false. Filing an extension only extends the deadline for filing your tax return, not the deadline for paying your taxes. If you owe taxes, you must still pay them by the original deadline or you may be subject to penalties and interest charges.