Common Myths and Truths About Taxes
Are you sure you know what’s going on with your taxes? Despite the number of people who file taxes with the IRS every year, many people don’t know how to separate fact from fiction when it comes to tax myths. Did you know that in 2015 the average refund was $2,815? In the same year, all the refunds added together equaled more than $217 billion. So if you think you’ll only get a small refund, think again. In fact, in 2014, 57 percent of people received at least $1,000, and 13 percent received at least $5,000.
To get those big refunds, you probably think you’ll need to hire an accountant. Nope! Only 22.2 percent of tax filers in 2015 used one. A whopping 37.4 percent used computer software to prepare their taxes, making it the most popular choice among tax filers. Online software and services make filing taxes much easier than it used to be. Basic filing is often free, you get audit support, and the programs guide you through every step of the process. You can even file your taxes using iOS compatible apps on your iPhone 6 Plus, whose fast A8 chip and large Retina display make it so easy.
Once you’ve got that refund, how do you plan to spend it? Only seven percent of people plan to spend their refund on a splurge purchase. The most popular plan is paying down debt. Saving and investing is the second most popular option, and purchasing necessities is a close third.
Read on for more myths and truths about taxes.
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