subject: Internal Revenue Service Urges Americans to Beware of these Tax Myths [print this page] Internal Revenue Service Urges Americans to Beware of these Tax Myths
The internet is the best tool to spread news regarding virtually anything including how to pay your taxes. Unfortunately, not everything that you read online is true. Be careful when searching for information in the World Wide Web, especially if it deals with important matters such as how to pay your tax. The Internal Revenue Service or IRS urges everyone in the state to always call their office whenever they hear about new terms of tax payment. These may or may not be true depending on the source. Here are some common tax myths that usually mislead thousands of people and eventually get them into trouble with the IRS.
Money That Is Earned Online Is Tax-free- This is not true, all income is taxable even when you are working online. This is your obligation to your state as someone who is earning. Take time to record all your revenue whether online or offline and file an income tax report to the IRS. Most entrepreneurs who sell their goods online usually find themselves in trouble when the IRS find out about their online businesses.
You Do Not Have to Pay Taxes When You Barter- Although there is no money involved when you barter a good or a service, the actual costs of the barter are still taxable. Both sides must report their transaction to the IRS for proper taxation. For instance, when you trade a good or a service that is approximately worth 200 USD, you must pay the tax on the $200 worth of goods/services.
Under-aged Workers do not have to pay for Taxes- All citizen less than 65 years old with a minimum gross income of approximately $9,500 must file an income tax return to the IRS. In addition, workers aged 65 and above with an income of $10,750 and above must still pay their taxes. Self-employed citizens with an income of $500 regardless of their age must still file for a tax return.
If you have been negligent on this kind of obligation, you can still file a tax return to the IRS today. This is not something that must be shrugged off because the various Bills passed in the congress and the different federal programs are supported by our taxes. Do your part so that the government can function properly, it will also help boost our deteriorating economy.
