The self-reporting US tax system isn’t the most straightforward of tax systems, and although the IRS does a good job at providing extensive online resources for tax payers, there are still many tax misconceptions among residents of San Antonio. As a provider of tax services in San Antonio TX, we at Defend Tax Payer consider it our duty to try to dispel some of these misconceptions in order to make tax preparation and payment easier for our customers, as well as for San Antonio residents in general. Without further ado, here are 3 common tax misconceptions in San Antonio.
- The US government automatically deducts the appropriate tax from my salary, which means that my only tax-related legal obligation is to prepare FORM W-4
False. Although FORM W-4 tells your employer how much tax money to deduct from your monthly salary, the true amount of tax money you own may turn out to be by the end of the year a bit more or a bit less than the deducted sum. Filling an accurate income tax return at the end of the year is therefore required. The IRS will compare the numbers on your FORM W-4 with those on your end-of-year income tax return and decide whether it will deduct additional tax money from you, or give back a part or even all of the money initially withheld.
- Everyone can use the simplified FORM 1040EZ to file for income tax
False. The IRS developed FORM 1040EZ specifically for residents of the United States. Two other categories that can use this form are permanent resident aliens and residents for tax purposes. If you are not (yet) a resident of the US, or belong to the other two categories, then you can file the 1040NR EZ form, which is more straightforward than the traditional 1040NR form and can be filled quicker. A tax consultant in San Antonio can help you do so.
- If I am a graduate student and my teaching or research position as an assistant within the university pays for my tuitions and other fees, I don’t have to pay any taxes
False. According to US law, graduate assistantships are taxed. The IRS considers the tuition and other fees that are paid for you (as well as living expenses, if that is the case) as financial gain received for the work you do. If you are a student following a graduate assistantship and are not sure about your tax status, you may want to contact a tax consultant in San Antonio.
Whether you are a full-time employee, a student, or a business owner, if you are unsure about your tax status or have run into problems with the IRS, we at Defend Tax Payer have a dedicated team of experienced legal workers who can help you with professional tax services in San Antonio, TX. Visit our Services page to find out more, or call us at 866-489-1670.