The Frustration of Tax Myths vs Tax Facts
The internet is a plethora of information where onecan find information on any subject at any time, day or night.Unfortunately, much of the information needs to have full research due toopinionated posts on websites, blogs or social media pages. Here are some ofthe most common tax myths and facts that have been circulating this tax season:
Myth: I waspaid in cash, so I don’t need to report my income.
Fact: You arerequired report all income whether it was cash, direct deposit, tips, bonuses,dividends or other pay types.
Myth: I havea code 152 on the Where’s My Refund Application. This means that my return willbe approved within the next couple of days and I’ll have my refund faster.
Fact: TheWhere’s My Refund application is a convenient tool for taxpayers to use insteadof attempting to call the IRS for information that a representative may nothave. A 152 code is generally listed at the bottom of every taxpayers Where’sMy Refund page and is a standard code that simply tells taxpayers the variousways that they are able to receive refunds.
Myth: Thebars on my Where’s My Refund page have disappeared. This means that I shouldhave my refund fast and that my return is being reviewed right at this momentfor approval.
Fact: Websitestend to have minor glitches, and when your bars vanish on the Where’s My Refundapplication, it’s just a simple “glitch” on the page and has absolutely nothingto do with refund status.
Myth: If youcan get your tax transcript you can get a number from it and see exactly whenyou will receive your refund.
Fact: Everytax transcript is as different as the people they belong to.
Tax transcriptsare generally used for income verification, student loans, mortgage andinvestment loans and other financial areas that need proof of income. Anindividual tax transcript will not tell a person when they will receive arefund.
Myth: I don’tneed to report winnings from a casino or lottery tickets.
Fact: If youhave won money then you must report your winnings.
Myth: If Icall the IRS and speak to an agent they can tell me if my return has beenapproved and exactly when I will receive my refund.
Fact: If youhave filed your taxes and they have not yet been approved, speaking to arepresentative on the telephone will most likely not assist with gainingknowledge of your current year tax return. Agents that answer the phone lineshave limited information for security purposes. Even if you wait the 21 daysafter filing, agents are only allowed to speak to you about certain criteriaand you will most likely be told that your return is processing and that ifanything is found to be wrong with it, the IRS will notify you by standardpostal mail with instructions on what to do.
The key to tax season is to have patience and a fullunderstanding that a fast refund shouldn’t be expected. Don’t spend money ormake plans to spend money that has not yet been approved and already depositedto your bank account. Chatting with others via social media pages that pertainto tax returns is nice to build up comradery and socialize, but be sure not totake everything posted as a hard fact. Keep in mind that the people posting arein the same situation as you. They all want to see a refund as quickly aspossible and many will begin speculating on laws, codes and deposit dates. Whenyou need real answers to your tax inquiries, you should always seek advice froma licensed tax professional.
