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Article:
Are You An Innocent Victim of These Popular Myths? by: Karin Workman Misconceptions, misinterpretations and just plain 'untruths' are floating about income taxes. Believing them could be costing thousands of tax dollars! Myth: A Professional Tax Preparer knows all there is to know about taxes so you don't have to know anything them. Truth: Tax Preparer's/CPA's/Accountants are not uniformly informed about ALL tax laws. Most are able to file a personal income tax and know all the laws and how to apply them to personal income tax. There are thousands of excellent, hard-working accountants doing a great job. And if you use a tax professional, maybe they have done everything possible to reduce your taxes. But many professional tax preparers are just tax preparers. They may know how to prepare a tax return in their sleep. They know what numbers go on which form. But that's about all they know. A good tax preparer is not trained in tax reduction strategies. The only way you are assured to get the tax deductions you are entitled to, as a Home-Based Business Owner, is to become informed yourself. Myth: You must 'itemize' in order to take Home-Based Business expenses. Truth: Many people misunderstand the terminology here. When you 'itemize' your income tax you file Form A&B and take such things as medical, home mortgage interest etc. You will only 'itemize' if the total of Form A is over the standard deduction (for 2003 taxes'$'4
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