Debunking The Top 5 Myths About IRS Tax Refunds

Tax season often brings anxiety and uncertainty for many Americans. While some concerns are legitimate, others are fueled by persistent myths and misconceptions. Let’s set the record straight on some common misunderstandings, including:

• Several misleading myths about how to get larger refunds. 
• How errors, oversights, and refunds from previous years can impact this year’s or next year’s.
• Why what used to be true about itemization may no longer be. 

Myth #1: Filing My Taxes Early Means A Bigger Refund

No, filing early does not affect the size of your refund. The refund amount is determined entirely by the information on your tax return, not the timing of when you file. Filing early can help you receive your refund sooner, but it won’t make it larger.

If you want to maximize your refund, working with a knowledgeable tax preparation attorney can help you identify all eligible deductions and credits.

Myth #2: Claiming Zero Exemptions Guarantees A Larger Refund

Not necessarily. While claiming zero exemptions often leads to a larger refund, it’s not guaranteed. Here’s why:

• Claiming zero exemptions means your employer withholds more money from your paycheck throughout the year. As a result, you’re more likely to receive a larger refund when you file your taxes.
• However, other factors on your tax return—such as deductions, credits, and income adjustments—can offset this and potentially reduce the size of your refund.

So, while claiming zero exemptions typically increases the likelihood of a larger refund, it’s not an absolute rule.

Myth #3: You Can Claim An Additional Refund For Prior Year’s Tax Errors

No, you cannot claim an additional refund on this year’s return for mistakes made in a prior year.

However, if you discover an error in a previous tax return, you can amend that return. If the amendment leads to a refund, you’ll receive the refund for the earlier year—not for the current one.

Myth #4: All Overpaid Taxes Automatically Result In A Refund

Not necessarily. If you overpay taxes this year, the IRS or South Carolina will first check for any outstanding tax debts from prior years. If you owe back taxes, the overpayment will be applied to those balances instead of being issued as a refund.

Myth #5: Itemizing Always Leads To A Larger Refund Than Taking The Standard Deduction

This used to be true in many cases, but recent changes in tax law have flipped the script for most taxpayers.

The IRS significantly increased the standard deduction in recent years, making it much less advantageous for many people to itemize. Currently, 80 to 90% of South Carolina residents find that the standard deduction provides a better result than itemizing.

You can still claim certain deductions, such as up to $600 in charitable contributions, without itemizing. However, itemizing may still be worthwhile if you:

• Donate substantial amounts to your church or charity.
• Incur catastrophic medical expenses that exceed a significant percentage of your income.

For most people, though, the standard deduction will result in a larger refund. The best way to determine which approach is right for you is to consult with an experienced tax preparation professional.

Hoping For A Larger Refund This Tax Season?

For more information on How To Maximize Your Tax Refund In 2025, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling
(864) 271-7940 today.