Saturday, May 17, 2014
- Maximum Age for Income Tax. Many clients frequently ask how old you must be before you stop paying taxes. The answer is that you are always subject to the income tax.
- No Document = No Income. Whether or not the taxpayer or the IRS received information reporting income, “income is income.”
- Money Spent on Appearance is Deductible. Although many of us need to look presentable for work, clients, etc., with the exception of certain work-related uniforms, needing to look good does not mean you can deduct gym memberships, nice clothes, or health foods.
- E-Filing Is A Hoax. Some people believe that paper filing is safer because if they e-file, the IRS will have access to their bank account information and steal their money. This again, is untrue.
- Private School Tuition is Deductible. Unfortunately, no.
- Deducting Maximum Mileage. There is no maximum or minimum mileage, only how far you drove.
- Deducting Wedding Costs Since Clients Attended. Having clients attend a non-professional event (wedding, birthday, etc.) does not make it deductible.
See 7 Taxpayer Misconceptions, OnWallStreet, May 15, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.