Five Common Myths to Watch Out for this Tax Season

1. Tax Refunds are free money from the government: Unfortunately, this myth is as pervasive as it is false. Large tax refunds are a lot like interest-free loans given from you to the government. You may have had money over-withheld from paycheck, or overpaid any estimated payments from the government, leaving them with an excess of your money at the end of tax season. We recommend putting those funds to work by investing it, or letting it gain interest in a bank to build upon any interest you’ve potentially lost. 2. Filing an extension extends my payment deadline: Filing an extension may be helpful to those who need more time to fill out the necessary paperwork and tax returns, but it does not extend the actual date of payment. April 15th is a hard deadline (unless it falls on a weekend or holiday), so make sure you give yourself the time to make that payment. If not, you are liable for fees and interest rates. 3. Students and part-time employees don’t need to fill out a tax return: Every year the IRS releases filing thresholds for different ages/filing statuses. Even if you are filing as single under 65, if you have earned more than the threshhold gross income, you required to file. It may also be beneficial to file if you have had taxes withheld from you, or, if you are student, are qualifies for any refundable credits such as the American Opportunity Credit or Earned Income Credit. 4. Any Charitable Donation counts as a Deductible: As of the 2025 tax season, only donations to certain organizations are deductible. For example, contributions to political organizations would not be able to be filed as a deductible. If you have any concerns about your recent donations, the IRS was a search tool on their website thats identifies all qualified charitable donations. Donations to individuals also do not offer any tax benefits, and if any good or services are exchanged as a result of your contribution, the contributions will subsequently not count as a deductible. To ensure accuracy in the tax filing process, Any receipts, letters, and other physical forms of communication between you and the charity should be kept. 5. Only High Earning Tax Payers are Audited: While it is true that statistically more high earning tax payers are audited at a higher rate due to the potential revenue for the IRS, they are not the only people who are audited. The biggest cause for audits are any tax discrepancies or mathematical errors, or is the amount of deductibles claimed eclipse a person’s gross income for the year. Tax season can be difficult to navigate, but Hantzmon-Wiebel is here to help. Our tax services cover the planning and the completing processes to help you maximize your earnings. Learn more at https://www.hwllp.cpa/tax