Maui Income Tax Brackets and Taxes – 5 Myths and Misconceptions
How much do you really know about Maui income tax brackets and taxes?
Generally speaking, taxpayers everywhere roll their eyes when tax season is approaching. Most people don’t even like thinking about Maui income tax brackets, forms or deductions, let alone enjoy preparing a return.
Whether taxpayers like the thought of it or not, filing taxes every year is a requirement and unfortunately, there are several misconceptions that revolve around the concept.
Keep reading to find out the most common myths that float around Maui income tax brackets, refunds, audits and more.
Taxpayers from higher Maui income tax brackets don’t pay enough taxes
Often times, people think that “the rich” don’t pay enough taxes. The affirmation though, is far from the truth.
While wealthy individuals may get a greater number of benefits, compared to low income earners, they’re still required to pay taxes. The idea that top earners don’t pay their fair share is just a myth.
Typically, people in the high Maui income tax brackets actually owe more in taxes. However, because they can deduct more of their expenses, it may seem that they pay less in taxes compared to the average individual.
People from lower Maui income tax brackets don’t pay tax
Another common misconception is that “the poor” don’t pay taxes at all. However, the affirmation is just a myth.
People from low Maui income tax brackets are definitely required to file a return. However, because of their low income, some taxpayers may be able to significantly lower their taxable income and therefore, it may seem that they’re not actually paying taxes like they should.
You can lie on your tax return to get a higher refund
Many people believe that the whole point of filing taxes is to get a refund. With that said, there are many who believe you can easily lie on your return.
When it comes to filing your taxes on Maui, or anywhere else in the U.S. for that matter, keep in mind that falsifying information on a return can lead to penalties, fines and you can even risk criminal charges.
Tax fraud is a serious felony and you should never lie when filing your return. If you’re looking to lower the amount of taxable income, consult with a professional tax preparer in Maui and find out how you can safely maximize your deductions next season.
Those who e-file their return are at higher risk of being audited
If you’re wondering about the red flags that trigger IRS audits, know that filing your return electronically is not among them.
E-filing simply allows you to file your return in an easier and more comfortable way. There’s no need to worry about increasing the risk of being audited.
If you’re truly worried about being called in for an audit, consult with a tax preparer right away. A professional will help you better understand the main audit triggers and will help you file your return, if you need assistance.
Paying taxes in Maui is not mandatory
Some people still believe that filing taxes is optional. However, the myth is simply a way for protesters to justify not paying taxes.
Everyone is required by law to file a return and you should keep in mind that avoiding to pay taxes is illegal. Don’t put your financial future at risk and consult with a tax professional today to learn more about Maui income tax brackets and how to pay your taxes.