Tax season can be confusing, and sorting through myths and misconceptions can be overwhelming. To help you, we’ve compiled some of the craziest tax deduction myths and the truth behind them. Let’s dive in!
Myth #1️⃣: I can deduct my cat’scat’s expenses.
Fact: Sorry, cat lovers, this is not true. While service animal expenses are deductible, regular pet expenses are not.
Myth #2️⃣: I can deduct the cost of my haircut.
Fact: Haircuts are not deductible, even if you need them for work purposes.
Myth #3️⃣: I can deduct the cost of my family vacation. Fact: Family vacations are not deductible unless you mix business with pleasure on a business trip.
Myth #4️⃣: I only need to file taxes if I owe money.
Fact: This is not true. Regardless of whether you owe money, you are legally required to file a tax return if your income meets a certain threshold.
Myth #5️⃣: I can write off my home office since I now work from home.
Fact: If you’re a W-2 employee, you’re out of luck. However, if you’re self-employed or a freelancer, you may be eligible to claim a home office deduction.
At Palma Financial Services, Inc., we’re here to help you navigate the complexities of taxes and ensure you’re taking advantage of any tax benefits you’re eligible for. Contact us today to learn more.
Don’t fall for these tax deduction myths! Let us help you save money and maximize your tax benefits. One of the ways we help our clients save money is by offering a free tax assessment. Book your free consultation here.