When it comes to tax filing and tax services, there are several facts and myths that are associated with the procedure nowadays. While some of these facts that have developed over time are still true, some of them are no more accurate. Therefore, when you start filing for your taxes, or get tax services Orlando FL, it is very important to understand what is true and what isn’t. Here, we are stating some common myths associated with the tax filing process that you should know before you start with your tax proceedings this year, since some of them can cost you big:
Tax Services Orlando Myth 1 – Tax Refunds are Good
A lot of people think that getting a big, fat amount of money as tax refunds is the best thing that happens to their finances. However, this might not be true if you consider it from an investment point of view. A large amount of tax refund indicates that all that amount of money was in the government’s possession when you could have had hold of it for a substantial period of time.
Therefore, you should try to ensure that your tax refunds are minimal, which can be done with the help of your employer, asking them to reduce the tax deductions on your income. Ask the tax services Orlando FL to guide you further in this regard.
Tax Services Orlando Myth 2 – Tax Is Not Applicable On Barter
Another common misconception that is often found among people is that barter transactions are exempted from tax. Today, barter transactions, especially in B2B sectors, have become quite popular courtesy to the virtual platforms that aid these transactions. Many businesses and individuals are under the perception that barter is not taxable since no exchange of cash takes place.
However, all barter transactions are considered equivalent to cash transactions by tax authorities and are subjected to tax. The value of these transactions should be recorded equal to the cash value that would usually be exchanged for similar transactions. Therefore, if you carry out barter for many of your business or personal needs, be sure to add them to your tax reports accurately, taking the help of your tax services Orlando FL provider.
Tax Services Orlando Myth 3 – Low Income Means You Shouldn’t File Taxes
Another common myth that can often cost people is that if they have low income, they are not required to file taxes. No matter how low you are earning, it is very important to file for your taxes every year in order to continue to get different benefits that are provided by the government income-tax benefits or old age support.
Even in the form of tax refunds, you can get a monetary benefit. Therefore, no matter how little you are earning, it is important that you file your tax returns every year regularly, even if you are working part-time.
Tax Services Orlando Myth 4 – There Is No Need to File Taxes If You Can’t Pay Them
If you think you don’t need to file taxes at the right time just because you can’t pay them, you are definitely going to be in trouble. A penalty fees is charged on filing your taxes late, which can be quite substantial. In order to avoid these costs, it is important that you file your taxes on time even if you have to pay them later.
However, you should know that interest is charged on late tax payments. Therefore, you should be careful about paying off your taxes on time. You can hire tax services Orlando FL at the start of the year to provide you with an estimate of how much to save each month to make your tax payments.
If you need more information about our accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting firm has its main offices in Kissimmee, FL. We serve the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.