13 Things Clients Don't Get About Taxes: Advisors' Advice  

Ed. note: An item in the gallery concerning the charitable deduction has been removed. The $300 deduction for non-itemizers, a temporary tax break in response to the pandemic, was available only in 2020 and 2021. The charitable deduction for clients who do not itemize was repealed by the tax overhaul of 2017. For the latest Advisors' Advice, ThinkAdvisor asked advisors to tell us what the biggest misconceptions their clients had around taxes. And the advisors who responded made it clear that clients have many misconceptions about taxes. In many cases, clients don't even know there are steps they can take that would limit their taxes. In other cases, clients don't understand the significance of selecting the right amount to be withheld from their earnings. We received many responses to our question through the Financial Planning Association, the Wealthtender Financial Network and XY Planning Network. See the gallery for a selection of advisors' responses. Some replies have been edited.