tax preparation offices, online tax preparation software

Today, just like in any other age, people hear things and repeat them without thinking. This is alll so obvious with the Internet and its far-reaching platform. Almost everyone is an expert on one thing or another and spout their views to the gullible and sometimes lazy recipients. When some people reach one of the <a href="http://www.taxhelpvault.com/recommends/page64.html">tax preparation offices </a>online or offline, they hold so many false truths about taxes that they make unreasonable claims. If you believe you have misinformation about income tax preparation, you can buy one of the <a href="http://www.taxhelpvault.com/recommends/page64.html">online tax preparation software </a>packages. Using these packages is a sure way to learning about income and deductions.

Read the following article to reinforce your knowledge about tax preparation.

<h4>Are you a victim of these 7 tax myths?</h4>
<p>Distortions and just plain falsehoods are being told about income taxes. Believing them could be costing thousands of  tax dollars!</p> <p>Misconception #1: My professional tax preparer knows  everything about taxes so I don't have to.</p> <p>Truth:   Tax Preparers/CPA's/Accountants are not uniformly  informed about ALL tax laws.  Most are able to file a  personal income tax and know all the laws and how to apply  them.</p> <p>Thousands of excellent tax professionals are doing a good  job and maybe yours is looking for ways to reduce your  taxes.  But the greatest majority only prepare your tax  return.  They know how to fill out the forms with their eyes  closed.</p> <p>Your tax preparer does a good job filling out your taxes  with the figures YOU provide.  Most do now ask questions in  search of further deductions to reduce your taxes.  Only by  becoming informed about home business tax laws will you be  assured of taking every deduction allowed by law.</p> <p>Misconception #2: You cannot deduct home based business  expenses unless you "itemize".</p> <p>Truth: All taxpayers have the opportunity to itemize if it  is to their advantage. Whether you "itemize" or not has NO  bearing on your Business. When you "itemize" your income tax  you file Form A&B and take such things as medical, home  mortgage interest etc. You will only "itemize" if the total  of Form A is over the standard deduction (for 2008  taxes$5,450 single, $10,900 married).</p> <p>Misconception #3: There is no advantage to filing business  tax forms if you are not making a profit.</p> <p>Truth: You should file a business tax especially if you are  not making a profit.  Home business expenses can be offset  by income from your job. This reduces your taxable income  which in turn reduces your tax liability.</p> <p>Misconception #4: Your Internet marketing business is just a  hobby because you hold a full time job.</p> <p>Truth:    The rules clearly state you have a business if you  meet 8 rules.  Four of the most important rules to meet are:</p> <p>1. The knowledge of the taxpayer or his/her advisers. If you  are developing a home-based business and actively learning  and applying business principals to your business...you  qualify.</p> <p>2. The United States Federal Tax Court has ruled that 45  minutes a day, 4 to 5 days a week qualifies the Time and  Effort stipulation.</p> <p>3. The way you carry on your business activity.  If you  conduct your business mostly on the telephone, over the  Internet and in-home presentations you'll do fine.  On the  other hand if you do most of your business on the golf  course, during lunch or at the bar you have a hobby not a  business.</p> <p>4. If your primary reason for having a business is to  produce income instead of create tax write offs then you  qualify.  It does not make any difference if you actually  make any profit. Just to show that you have the intent to  produce a profit.</p> <p>If you meet those 4 criteria then there is no reason your  business would be classified as a hobby.</p> <p>Misconception #5: In order to file home business taxes you  must make a profit within 5 years.</p> <p>Truth:   That's a generalization.  Yes, the government would  like to see you make a profit within 5 years but you are not  penalized for not doing so.  If you are following the above  4 rules and conducting yourself as a business you have  nothing to worry about.  You are a business and some  businesses are not profitable for a number of years.</p> <p>Myth #6:    Learning how to reduce you taxes is hard and  complicated.</p> <p>Truth:  Learning tax reduction strategies is not hard for  the average person.  There are good books written for the  average business owner to learn what is available to them</p> <p>Misconception #7: Tax documentation and accounting are not  for a home business is not for the average person.</p> <p>Truth: Documentation for the government is very easy if you  use a pocket calendar and keep your receipts. In just 5-10  minutes a day you can have records that will withstand any  government scrutiny.</p> <p>Karin Russell has owned a home business specializing in tax  preparation for home based businesses for 36 years. Her  blog:<a href='http://homebusinessowners-rewards.blogspot.com'>Home Business Owners-Reap the Rewards</a>gives more tax  tips for home business owners. She highly recommends the  book <a href='http://homebusinessowners-reaptherewards.com'>'It's How Much You KEEP, That Counts! Not how much you  Make'</a>for all her business associates.</p>

Remember properly documenting your income tax details long before you begin your tax preparation can save you both time and money. 
