5 tax myths that can cost you money

[5 tax myths]

5 tax myths that can cost you money

We all think we know the parts of the tax code that affect us. But do we really? If you believe some of these myths, you could pay more tax than you should.

Santa Claus. The tooth fairy. Babe Ruth pointing to where he would hit a home run in the 1932 World Series. Someone who knocks on your door, smiles and announces, “I’m from the government, and I’m here to help you.”

Our culture is full of myths. And our tax system is full of myths, half-truths and untruths that can cost you big bucks if you don’t understand the rules.

So, let’s have a look at some of the bigger myths about taxes. If I’ve done my job properly, I’ll show you how they can trap you and how you can save money by separating myth from reality. And if you find you need more help, check the MSN Money site for more information, or consult a tax professional.

[b[Myth 1: I’m a student, so I don’t have to pay taxes.[/b]
Lots of people believe there’s an exemption for students that excludes them from tax. Wrong, scholarship breath!

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