3 Common Tax Myths That Can Hurt Your Refund This Year

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Tax season is a popular time for advice from friends, social media and even well-meaning family members. Unfortunately, not all advice is good advice and there are some common tax myths that could hinder your tax filing process or even affect your return if you’re not careful.

While you should always consult a tax professional for any specific questions about your unique situation, below we’re calling out 3 common tax myths that should be debunked and offering tips on what to do instead.  

Also here are other myths that could derail your finances.

You Shouldn’t File If You Don’t Owe Taxes

This common tax myth might sound like it makes sense, but filing taxes isn’t solely about owing money or getting a refund. It’s actually more about the income you earned for that tax year and whether it meets the minimum threshold. 

According to the IRS, you’re required to file a tax return if your gross income is $15,750 or more if you’re single or $31,500 if you’re married and filing jointly and both spouses are under the age of 65 ($33,100 if both spouses are over 65). These minimum income thresholds are also subject to change each tax year so be sure to check the IRS website for the most up-to-date numbers. 

You can still file a return if your income is lower, but it’s optional at that point. However, filing could help you see if you qualify for refundable tax credits like the Earned Income Tax Credit (EITC) or the Child Tax credit. 

Getting a Big Refund Means You Did Your Taxes Right

Getting a large tax refund can feel great, but it doesn’t always mean you optimized your taxes well. It could mean that you withheld too much of your income from your paycheck, so the government just held on to it and returned some of it to you when you filed taxes. 

Instead, that money could have been put to better use by saving it in a high-yield savings account (where it could earn interest), investing it or covering other expenses throughout the year so you can avoid debt.

You Can’t Claim Work-Related Expenses Anymore

Tax laws seem to be changing all the time. Whether it’s income limits or deduction categories or amounts, it can seem like a lot to keep up with. But when it comes to deducting work-expenses that were made to help operate a small business or for freelance or gig work, you can still deduct several eligible expenses. Missing these deductions can noticeably reduce your tax refund or increase how much you owe. 

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