With Tax Day fast approaching, confusion about taxes is heating up. Misinformation and conflicting ideas about what’s true can leave taxpayers scratching their heads. To set the record straight, we’re debunking five common tax myths we see popping up all the time. That said, our top advice is this: partner with a trusted tax preparer to navigate the maze. Here’s what you need to know:
1. All My Income Is Taxed at My Tax Bracket Rate
Think your entire income gets hit with one tax rate? Not quite. The U.S. uses a marginal tax system, meaning your income is taxed in tiers—first at 10%, then 12%, 22%, and so on, up to 37%, depending on what you earn. For example, if you’re married filing jointly with a taxable income of $150,000 after deductions, it breaks down like this: the first $23,850 is taxed at 10%, the next chunk from $23,850 to $96,950 at 12%, and from $96,950 to $150,000 at 22%. Your income isn’t taxed at one flat rate—it climbs the ladder step by step.
2. Students Don’t Need to File Taxes
Students often assume they’re off the tax hook, but that’s a myth. If you earn more than $14,600 in 2025, you must file a return. Even if you make less, filing could get you a refund. Check the IRS student guide for details: IRS.gov/individuals/students.
3. All Tax Credits Are Refundable
Tax credits are great—they reduce your tax bill dollar for dollar. But here’s the catch: most aren’t refundable. Non-refundable credits can only reduce your tax liability to zero, not beyond. A few, like the Earned Income Tax Credit, are refundable or partially so, but they’re the exception. To maximize credits, chat with a tax pro about what works for you.
4. Remote Workers Can Write Off Their Home Office
Dreaming of a home office deduction as a remote worker? If you’re a W-2 employee, sorry—no dice, unless you’ve got a side hustle. But if you’re self-employed and use a home office exclusively and regularly for business, you might qualify to deduct it.
5. Your Tax Preparer Is Liable for Your Return
Think your tax preparer takes the fall if something’s off? Not quite. It’s your return, and you’re ultimately responsible for its accuracy. Sure, preparers can slip up, and if they make a glaring error—like falsifying expenses—you can report them to the IRS. But don’t assume they’re your safety net; it’s your responsibility to double-check for accuracy.