Tax Tips 10 Popular Tax Myths Busted by Actress Jenny Lorenzo Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Mar 14, 2019 3 min read We are only a month away from Tax Day (April 15th)! Which means most of us have already filed our taxes or are almost there. You may have heard a couple of tax myths, such as: “You don’t have to report your income to the IRS if you get paid in cash” or “If you made money online, you don’t have to report it.” But do you know the real tax facts behind each myth? We took to the streets of Los Angeles, California with actress Jenny Lorenzo to ask random strangers how much they really knew about taxes. Check out our #TaxMitos (a.k.a. #TaxMyths) video to see what people had to say! https://blog-turbotax-intuit-com-prelaunch.go-vip.net/wp-content/uploads/2019/03/TurboTax-TaxMitos-Recap-FINAL.mp4 #TaxMito #1: You can claim your pet as a dependent Tax Fact: Even though our pets are part of our family, we can’t claim them as dependents. To the IRS, dependents must be humans and have a social security number. #TaxMito #2: You don’t have to report cash payments to IRS Tax Fact: For the IRS, all income is taxable, unless specified as exempt by law. It doesn’t matter if you receive cash without a w-2, 1099 or any other IRS approved income form. #TaxMito #3: You don’t need to file a tax return until you have the money to pay what you owe Tax Fact: If you cannot pay the full amount of the taxes you owe, you should still file your return by the deadline and arrange a payment plan with the IRS. #TaxMito #4: Filing taxes is voluntary Tax Fact: If you receive any type of income, you must file your taxes. Therefore, it is not voluntary #TaxMito #5: Students don’t have to pay taxes Tax Fact: It depends on your income. If you make money under the IRS income threshold, you may not need to file, but you should because you might miss out on your refund. #TaxMito #6: You can claim any person as a dependent Tax Fact: When you file taxes, you can claim any person as a dependent if you are responsible for more than 50% of his/her economic needs and meet certain other conditions. #TaxMito #7: Money made on the internet is tax-free Tax Fact: If you consistently sell things online, the IRS may deem your activities to be self-employed business activities, and you will be required to claim the income generally if your net income is $400 or more. #TaxMito #8: There is no way I can get my refund faster Tax Fact: The fastest way to get your refund is to file online and choose direct deposit. The IRS expects to issue nine out of 10 tax refunds in 21 days or less when you use e-file with direct deposit. #TaxMito #9: The IRS will call you if you need to make changes to your tax return Tax Fact: The IRS will never call you to make changes to your tax return or ask to pay taxes right over the phone. Avoid scams! #TaxMito #10: There is no tax solution out there that is easy and doesn’t require to leave your house Tax Fact: This is the new way of doing taxes! With TurboTax Live doing your taxes online is not only easy but convenient. You can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent with an average of 15 years of experience to get your tax questions answered without even leaving your house. A TurboTax Live CPA or Enrolled Agent can even review, sign, and file your tax return. Previous Post 6 Ways to Help Secure Your Personal Identity Next Post 3 Tax Tips for Millennials to Own Their Personal Finances Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?