Nothing is sure, but taxes and death. I am not sure who first coined that quote, but it is true, each April, whether we are ready or not, we must file our taxes. It doesn’t matter if you owe taxes or taxes are owed you, most Americans dread tax season.
In fact, tax season is one of the most daunting and stressful seasons because it surrounds the money you have made and money that you could potentially get back (or if you are unfortunate enough, have to pay). Filing your taxes is time consuming and can often be tricky, which is why there is a list of common mistakes that happen just about every year. The most common mistakes include the following:
- Tardiness – by filing your taxes late or waiting until the last minute, you are more susceptible to making mistakes and potentially missing the deadline which could lead to late fees and even extending the time you must wait for your refund.
- Calculation errors – this involves adding the wrong numbers from different lines or miscalculating the addition or subtraction. Be sure to check that you are following the explicit directions on where to add and subtract values from different figures throughout the form.
- Factual errors – this includes writing down the wrong numbers of your social security number, misspelling your name or putting down the wrong address. These mistakes are easy to make but the easiest to fix because you know your information best. Some people even misprint their bank account information causing their refund to go somewhere else other than their account
- Leaving out income – just because you think that most of your income is reported on the forms, make sure you include any other types of income that you may have received whether it is from side jobs, interest or self-employment
- Missing deductions – there are many deductions out there that are easy to not know about or miss out on. Be sure to check all the possible deductions you can use when filing your taxes
The best way to avoid these mistakes is to hire a certified public accountant! Let them take away the stress and time wasted that comes from filing your taxes.