Avoid These Simple Tax Mistakes That Can Cause You Problems
No one enjoys doing their income taxes. Not only do you have to pay, but you have to go through pages of instructions and fill in numerous fields of information. This is enough to make the average tax payer's head spin. If you are not careful, errors can be made easily that cause major problems. Before you sit down to do your next set of tax returns, read this article for advice on mistakes that you can avoid.
In this day and age, do not do calculations by hand. This opens up too many opportunities for manual errors. It is easy to make mathematical errors when you are working with long strings of numbers. Use a calculator instead. Not only will it save you time, but it will cut down on simple arithmetic errors.
If you are doing your taxes online, make double sure that you are selecting the right choices from the drop-down boxes. After you make your choice, go back and double check your selection. It is easy to accidentally pick the selection right next to the intended one.
Always make sure that you are using the right tax table. There are different tables based on your tax filing status. If you use the wrong table, it will give you the wrong calculations. You will either wind up paying too much, or you will wind up underpaying, which may result in a penalty for you.
Be careful when you are entering your social security number. Numbers can be easily transposed if you are not careful. After you enter it in, go back and review it to make sure it is correct.
There are specific documents that are required of you when you file your taxes. Make sure that you provide copies of your W-2's, 1099s, and other items that the IRS requires for your particular situation. If you have itemized deductions, you will need back-up documents for that. Check the IRS codes to see what you will need to provide.
Hiding your income is never a good idea. Employers report everything they pay out, and it is matched to what the employees report on their income tax. This is especially true if you are independent contractor and get 1099s from your employer. If the IRS determines that what your employer reported is missing from you reported, you can face a penalty.
A mistake that can cause you money is not double checking that you have claimed every deduction and tax credit that you qualify for. Check the tax code, and talk to a tax adviser if you are not sure about what you can claim.
Always keep copies of everything you send. You never know if something gets lost in the mail and you have to provide a backup for it.
Do not forget to sign your tax forms. This is obvious, but many people do forget.
Not making these mistakes will save you a lot of problems. Keep these tips in mind next time you are doing your taxes.
