It’s that time of year again- tax season! As you prepare to file your taxes, make sure to avoid these top 10 mistakes. These standard errors can cost you big bucks, from forgetting to claim deductions and credits to filing incorrect forms. So make sure to double-check your return before submitting it, and if you’re not sure how to do something, consult a tax specialist.
With a bit of organization and planning, filing your taxes can be a breeze!
Here are the Most Common Tax Filing mistakes:
1. Forgetting to claim certain deductions and credits
By omitting claims for certain deductions and credits, you may end up owing more in taxes than what you owe. Donations, contributions, and medical costs are all deductible expenses. Make sure to keep track of these throughout the year so that you don’t miss out on any possible cuts.
2. Filing incorrect forms
You may be new to the process, so you must understand all of your options and filing requirements. Double-check these before submitting anything for fear of error or getting into trouble with the IRS!
3. Forgetting to pay estimated taxes
You can avoid penalties and interest by paying enough quarterly estimated taxes. The best way is to make sure you don’t owe any when it comes time for filing your return, so plan accordingly!
4. Fearing the IRS
If you think filing your taxes is scary, you might be more likely to make mistakes because of it! And let’s face it- no one wants to get audited. So take a deep breath, and make sure to double-check your return for any mistakes or errors.
5. Not using the correct filing status
Filing your return with the wrong filing status could leave you paying more in taxes than what you owe.
6. Making math mistakes
Double-check those numbers! The IRS receives over 4 million math errors each year, most of those due to incorrect forms.
7. Filing your return too early
Don’t file your taxes until you’re completely ready! If you file before you have all the necessary forms or information, it could result in a delay, leaving you needing to refile your return. So wait until you have everything together before submitting your return.
8. Forgetting to sign your return
Double-check to confirm you’ve signed and dated your return!
9. Giving the IRS false information
Don’t try any funny business- it won’t work! The IRS has a dedicated unit dealing with specific taxpayer issues, like false income, withholding or claims. So make sure you’ve filled out your return accurately and truthfully.
10. Using the wrong mailing address
If you aren’t using Form 8822 to update your address with the IRS, then make sure to double-check that you’re sending it to the correct address!
The IRS has compiled a list of the top 10 most common tax filing mistakes made every year. If you want to avoid these costly errors, take some time now to review this list and make sure you’ve checked off all of your items before submitting your return.
There is no need to stress out as April 15th approaches when you can do everything right in advance. For a better understanding of the tax process and how you can file it correctly, get in touch with The Oasis Firm. We’re here to make sense of the most confusing tax issues and problems.