Tax Refund Myths
You may think that you know enough about federal income tax, but there is so much misinformation about taxes that you probably have at least a few wrong ideas. Many people, for instance, don’t really know what percentage of their incomes they contribute. Plenty blame President Obama for high taxes when they probably paid similar, if not higher, rates while President Bush held office. For example, the tax rate for a person earning $100,000 per year was 21.5 percent in 2012, at the beginning of Obama’s second term. The rate was exactly the same in 2004, at the beginning of Bush’s second term.
Many people also overestimate the amount of time they’ll spend preparing their taxes. The truth is that you don’t have to spend a lot of time on your taxes when you do them online with your iPhone 5s. The Retina display makes it easy to see all your information clearly so you submit the right income and deduction amounts. As long as you have a reliable tax preparation app, you can fill out the required digital forms quickly and accurately. Most apps will even help you submit your tax documents electronically so you can get your refund as soon as possible.
If you fall for one tax myth, then you might believe others, too. Take a few minutes to review these three common myths so you will know the truth about your taxes.