There are a number of confusing things in life- for some it’s deciphering the latest Christopher Nolan film, for others it might be the process of building whatever is in that flat pack box from Ikea. But what about taxes? They can also be a puzzling topic and we also tend to have some janky tax ideas in our brains. Unfortunately, those ideas are often what we base our decisions on if we don’t have a tax professional in our life. So our goal for this episode is to clear up some more common tax misconceptions out there and to make sure that we’re all making decisions based on what’s true instead of based on a video that someone made on TikTok, or what we heard a friend say.

  • Remember that even with a tax filing extension, you still need to pay your taxes on time!
  • Tax refunds aren’t great so check out the tax withholding calculator on the IRS website to ensure you hang onto more of your money.
  • If you can’t afford to pay your taxes, don’t ignore the IRS- try and set up an installment plan or even an offer in compromise but just don’t stick your head in the sand!

During this episode we enjoyed a Sponch-O Villa by J Wakefield! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!

Best friends out!

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2 comments on “Debunking Common Tax Misconceptions – Episode 344

  1. Thanks for your podcast. Nice Info!!!

    I want to let you know that the interest you pay on student loans can be deducted no matter if you take the standard deduction or the itemized deduction.

    • Hey Carl, thanks for listening!

      And that’s right- student loans are considered an adjustment to income so you can still account for those while taking the standard deduction. If we said otherwise on the show it must’ve been a slip of the tongue!