Tax season brings plenty of questions—and a few myths that can cause unnecessary worry. Separating fact from fiction can help you file confidently, avoid mistakes, and make smarter financial decisions.
Here are some common misconceptions that often come up with our clients, and the truths you should know.
Many people worry that requesting a tax return extension will trigger scrutiny from the IRS. The truth is, filing an extension simply gives you more time to submit your return. It does not extend the time to pay any taxes owed, and it will not automatically increase your chance of being audited.
Mistakes happen. Amending a tax return may extend the filing process, but submitting corrected information is far better than leaving errors unaddressed. The IRS expects honest corrections, and doing so can prevent bigger problems down the line. Common reasons include correcting math errors, reporting missed income, claiming deductions or credits you forgot, or updating personal information. Making these corrections ensures your return is accurate and can prevent penalties later.
While a refund can feel satisfying, it often means you’ve overpaid your taxes throughout the year. Adjusting your withholding or estimated payments can keep more of your money in your pocket during the year. Tax planning with your CPA ensures the IRS isn’t holding your money interest-free.
Some taxpayers assume there’s nothing they can do once the year has started. While certain deadlines have passed, your CPA can advise you of Q1 actions such as contributions to retirement accounts or HSAs that can still affect your current return. It’s never too late to explore planning opportunities.
All income is potentially taxable. Yes, this includes side gigs, 1099 income, gambling winnings, cancelled debt, bartering, interest, and other earned (or unearned) income. Keeping track of all sources of income ensures your return is accurate and helps avoid surprises at filing.
Some headlines make it sound like all overtime pay is tax-free. In reality, the 2025 OBBBA tax law allows eligible employees to deduct only the one-half portion of time-and-a-half overtime pay—up to $12,500 for individuals ($25,000 for joint filers). Not all positions qualify, and high-income earners may see a phase-out of this benefit. Tracking your overtime carefully and understanding the rules ensures you can claim the deduction properly without surprises on your tax return.
Not all tax professionals offer the same level of service. Some focus on year-round planning, others prepare returns only. Some specialize in small businesses, high-net-worth individuals, or unique tax situations. Interviewing the right professional ensures your needs are met, and your return is handled accurately and efficiently.
By understanding these common myths, you can approach tax season with confidence and make informed decisions about your filing, withholding, and financial planning. Knowing the facts protects you from unnecessary worry, penalties, and missed opportunities.
At Alloy Silverstein, our CPAs and tax advisors guide clients through tax season, busting myths, identifying opportunities, and helping you file accurately.
If you want clarity, confidence, and smart planning this tax season, Alloy Silverstein’s South Jersey team is here to help.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
