Not everyone is expected to be a tax expert. However, being oblivious to tax myths may get you in serious trouble with the IRS. You may face penalties such as tax liens, wage garnishments, etc., if you fall for common tax myths. Here are some of the most popular tax myths, according to USNews.com:
- Your work clothes are tax-deductible.
- You can estimate your numbers since you can always file an amended tax return later.
- Filing an extension gives you extra time to pay.
- If there is no record of the money, it doesn’t need to be reported.
- Making more money bumps you into a higher tax bracket.