The ever-changing tax code and misinformation about the tax system leads to a lot of confusion, which possibly results in losing hefty amounts, especially if you’re a small business owner, as you tend to make the worst decisions. Thus, knowing about tax myths and facts about tax services in Pembroke Pines, FL, providers is vital to protect your business. If you run a small business, there are certain tax myths that you must be aware of. This article highlights the 6 most common business tax myths and facts. Let’s dive in!
6 Common Small Business Tax Myths You Must Be Aware of
1. Myth: Tax returns need to be filed by the 15th April
Fact: According to a survey, more than half of the people are not aware of the fact that they can file a tax return by 18th April. In case the date falls either on a public holiday or a weekend, the tax date is the next weekday.
2. Myth: You can’t file taxes for 100% free
Fact: Another common misconception amongst people is it is not possible to file taxes for 100% free. Whereas, if you’ve got a simple tax return, it is possible to file taxes for free on sites like Credit Karma Tax, Cash App Taxes, and others. In case you deal with a complicated tax situation, it is still possible to file tax for free. Contact your accountant and ask if it’s possible.
3. Myth: Business taxes are only born by business owners
Fact: No, the burden of taxes are not only borne by business owners, but employees bear a significant percentage of this tax. Whereas empirical studies show that employees bear over 50% of the corporate income taxes.
4. Myth: Money or gifts sent by friends or family are taxable
Fact: According to a new tax policy, money and gifts sent by your friends or family are not taxable regardless of the total amount or the mode of payment. Thus, you can breathe a sigh of relief!
5. Myth: Students do not pay taxes
Fact: Although most students do not make enough money to file an income tax return. However, if you reach the minimum amount for filing income tax returns or generate a higher income, you will have to pay the tax.
6. Myth: The tax preparer takes charge of any mistake on your return
Fact: That’s completely untrue, as the tax preparer will not be in charge of any mistake on your return, whereas you will have to take complete responsibility for any misleading information on your tax return. You accept this responsibility while signing your tax return.
Small business tax myths are common and cost you hundreds of dollars. Thus, knowing about myths and facts is vital to avoid business loss!