A CPA Says Most People Have No Idea How Taxes Really Work. ‘You Can Put Whatever You Want On Your Tax Return Until You Get Audited’

Talk to enough people about taxes and the same myths come up again and again. Write-offs are treated like free money. Tax brackets are feared. Refunds are seen as bonuses. And plenty of workers are convinced that earning more will somehow cost them in the end.
A Familiar Argument Inside The Firehouse
Those misunderstandings were on full display in a recent discussion on Reddit’s r/tax forum, sparked by a certified public accountant who also works as a firefighter and shared a moment that will sound familiar to many accountants.
During a training class, one of his captains confidently told the room that firefighters could write off razors, shaving cream, gym equipment, and even food eaten while on shift because it was “required for work.”
Don’t Miss:
When the CPA pushed back, the captain doubled down, insisting his “tax guy” had been doing it for years. “You can put whatever you want on your tax return until you get audited,” he told the captain.
That line quickly drew a response from hundreds of tax professionals, preparers, and regular taxpayers, who piled into the comments with stories that revealed just how misunderstood taxes are, especially when it comes to write-offs.
The Myth Of The Magical Write-Off
The most common misunderstanding, by far, was the idea that a write-off is the same thing as free money. Many people believe that if they spend $1,000 on something and “write it off,” the government gives them $1,000 back.
“The number of people who think ‘write off’ means ‘the government reimburses me’ never stops surprising me,” one CPA said. “That misunderstanding alone explains a lot of bad tax decisions.”
Trending: Motley Fool’s analysts have built a new lineup of passive ETFs — explore which “Foolish” strategy fits your investment goals.
“The amount of people who would rather spend $100,000 to save $30,000 in tax is mind blowing,” one commenter summed up the frustration.
The thread quickly turned into a greatest-hits list of things people tried to deduct.
People described attempts to deduct everything from personal vehicles with no real business use and family vacations labeled as “research,” to pets claimed as dependents, everyday grooming and clothing, lottery tickets, casino trips, cruises, Netflix subscriptions, child care, weddings, and even cosmetic surgery.
Fear Of Tax Brackets And Overtime
Another recurring theme was widespread fear of tax brackets. Many workers avoid overtime, bonuses, or raises because they believe earning more money means all their income gets taxed at a higher rate. Several preparers shared stories of clients who refused overtime because they thought it would result in lower take-home pay.
One tax preparer recalled a mother yelling at her adult son for working too much overtime because it cost him eligibility for a small credit. Even after the numbers were explained, she refused to believe earning more was better.
See Also: Designed for investors with strong market convictions, REX Shares builds ETFs for income, leverage, and tactical positioning — explore the lineup.
Others pointed out that while withholding on overtime or bonuses can look higher on a single paycheck, that does not change the total tax owed for the year.
Few topics irritated tax professionals more than the constant mixing up of refunds and returns, as many people judge a preparer’s skill by how big their refund is. One tax professional shared an exchange where a client said, “You must not be a very good preparer,” after learning they owed $100 instead of getting money back.
Getting Help Before Mistakes Get Expensive
As the CPA who started the discussion learned in his firehouse classroom, plenty of people are sure they are right, right up until the audit notice arrives.
Read Next: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen
Image: Imagn