Let’s face it. Misinformation is all over the place. And when it comes to taxes, Americans hear all kinds of myths. Take a minute to check out the most common tax myths we hear from clients. We’re all about the truth at OTB Tax!
Tax Myth 1: If you work full-time, you don’t get the same benefits for tax deductions.
This is one of our favorite myths to bust. If you only have a W-2 job, you don’t have access to the 475 deductions available to business owners. But if you are a W-2 employee full-time with a part-time side hustle, you can qualify for those same deductions. This is why we love to say that you need to have a home-based business, and then some of your living expenses can become business expenses, just like major corporations and those with full-time companies. As long as you attempt to earn an income three to five days a week, for forty-five minutes each day, and you’re in!
Tax Myth 2: Big businesses have different deductions.
Deductions are the same no matter the size of the business. The dollar amounts saved are bigger when your business makes more money. And, of course, big businesses have the wherewithal to hire tax strategists who understand how deductions work so that they can take advantage of all the deductions available to every business owner.
Tax Myth 3: You have to make a profit in order to take advantage of tax deductions.
This is one of the myths that get busted when you understand the idea of attempting to earn an income. So document your time and expenses to show that you are in pursuit of making money! You can use bookkeeping software like Hurdlr to track your expenses and mileage, along with a time tracking platform like Toggl, to show that you are working for at least forty-five minutes, three to five days each week. And don’t worry, most businesses take time to grow and make profits. Keep going. You’ll get there!
Tax Myth 4: Your accountant takes care of your taxes.
By far, this is one of the most powerful myths out there! So many people think it’s fine to stop by the accountant’s office one day a year with a ton of paperwork for them to sort through, thinking that they are excited to help them save the most money. Most accountants are working really hard to complete as many tax returns as possible. But they don’t have the time during tax season to discuss a strategy with each client! You need a tax strategist to help you plan ahead for each year’s taxes, so you know the deductions you are entitled to take.
It’s time to get clear with the correct information about your taxes! Join the More Relaxing and Less Taxing Membership. Gain access to our video library and more when you sign up here! We’d love to help you get ready for the 2021 tax season with a Tax Strategy Session here.
Our team specializes in tax strategy, preparation, bookkeeping, and more! We make it a priority to help our clients save more of their hard-earned money legally, ethically, and morally. Here’s to a more relaxing and less taxing way to learn about your taxes!