There are few things more daunting than facing a blank tax form knowing that you will be required to fill it out for yourself. It doesnt matter if that form is literally a page sitting in front of you with a pencil and calculator as your trusted companions or a computer screen, both are scary and you probably dont really want to deal with them.

In an effort to ease those fears, you resort to some sort of research to verify that you are doing it correctly. Sometimes that means cracking open an IRS publication, Googling “how to prepare taxes” or talking to your friends and neighbors. The problem with that is that not everything you read or hear is entirely accurate. There are several myths and misconceptions about preparing taxes. Here are six of the more common myths so you wont fall into these traps.

Myth:  I had a really big loss in the stock market this year, so I wont owe any income taxes.

Truth:  Deduction of capital losses against ordinary income is limited to $3,000 per year.  Any losses above $3,000 will be carried to future years until it is used up. In addition, dividends you receive (even if they are reinvested) are still income to you and are taxed as such.

Myth:  Im filing an extension this year, so I dont need to pay anything yet.

Truth:  Extensions only extend the TIME for you to file your return, not the time for you to pay any taxes owed. If you owe taxes and file an extension, you are still required to pay that tax liability by April 15. Failure to do that will lead to owing more in the form of penalties and interest.

Myth:  Income earned in a foreign country is not taxable.

Truth:   Regardless of where the income originates, taxpayers are required to report ALL earned income. Some special rules and credits may apply. Please consult a tax professional if you have foreign income.

Myth:  They paid me cash so I dont have to report it.

Truth:  Again, we come back to the issue of “income.” If its income, it must be reported no matter how you receive that income. If its cash, bonuses, dividends or free toasters from the bank, it must be reported.

Myth:  Im too young to have to pay taxes.

Truth:  Regardless of your age, you are required to file a tax return if you earned more than the minimum filing amount or had taxes withheld on earned income, even if you are a dependent on another persons return. That minimum earned income is $6,100 for 2013.

Myth:  Tax preparers only fill out forms that you can do yourself.

Truth:  Paid preparers know how to navigate the confusing and constantly changing maze we call a tax code. They know tax laws, regulations and codes and how they can be applied to your individual situation for your benefit. Enrolled agents and CPAs are required to receive continuing education every year so that they can be up to date with the most recent tax changes. They can also represent you should you find yourself the lucky recipient of a love letter from the IRS or any other state taxing authority.

Dont let the prospect of getting your taxes done intimidate you. If you do research, just be aware of what you are reading and/or listening to and make sure they are reputable sources. Never be afraid to hire a tax professional. The expense could very well be made up in tax savings. FBN