Tax Pictures Everyone looks forward to getting a tax refund. But beware of the myths surrounding it. See more pictures of taxes.
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You may have heard them from your neighbor, discussed them at the office or argued over them with your friends. Yes, as we approach tax season, tax myths abound -- and that includes myths pertaining to tax refunds: A large refund is a good refund; I can't be audited if I've gotten a refund, to name just two.
So how do tax myths get started, anyway? One explanation might be our tax system itself, which isn't exactly simple. There are earned income credits, education credits, health savings, Roth retirement accounts, different tax rates on dividends, temporary tax cuts and a multitude of tax brackets. The Internal Revenue Code runs more than 3 million words and the instructions for the 1040 form alone take up more than 100 pages [source: Williams].
Since it's difficult to understand our complex, ever-changing tax system, many half-truths and misunderstandings are born. Read on to learn about some of the myths related to tax refunds and some of the realities.
