On a message board I read, I'm amazed by the number of people who incorrectly quote tax law. They claim to not pay taxes on items which I've paid taxes on in the past.
For example one man claimed to not pay taxes on his moving expenses on the company. When we moved cross country, sold a home to the company, and bought a house on their dime, we had to pay taxes on all expenses paid for by the company. Why? Because it was as though they had given us the money to pay all those expenses. Also we used a CPA and filed out tax return. The man used turbotax and deducted all of his moving expenses paid for by the company. I questioned the ethics of this and he never responded.
Second case, a woman claimed to not pay income taxes on tuition reimbursement from her company. At the IRS website I read and was told by the CPA that $5250 was not taxable but above that the reimbursement was taxable. The woman claimed it wasn't taxable because the tuition was paid by taxed dollars, thus getting the money from the company was also with taxed dollars. She didn't understand that taxed or not, it was reimbursement which would increase her income.
Third case was a person who claimed to have the still gotten the child tax credit for three children, though she claimed to have made $120k last year. Again on the IRS website it states that Married Filing Jointly incomes of over $110k have the credit phased out.
I just don't get where these people their information from? Are they using turbotax? Are they using a CPA? Why aren't they more informed about what is a tax deduction? I feel as though I shouldn't be as honest on my taxes because here we are DINKS paying a lot of taxes, yet not cheating the system at all. But others are making "mistakes".
Are you honest about your taxes? Do you use a CPA or turbotax? I wonder what percentage of people are honest while doing their taxes? Are these people just exceptions and not the norm?