Tax 101: Avoid These Common Mistakes
It's hard to do your taxes, no doubt, but that only means you need to try harder to learn about how to do it right. By reviewing the list of mistakes below, you will learn what your peers do wrong and how you can avoid these problems. That will leave you better able to complete your taxes on time and correctly so you don't face penalties down the road.
Don't do the math in your head! If you forget to carry a number or put a decimal in the wrong place, you may lead yourself down the road to an audit. Be sure to use a calculator and double check every calculation at least once or twice so that you don't make any mistakes. In fact, completing your taxes through software is the best bet as it does the calculations for you.
Whether you are using software or pen and paper, double check your work as you complete it. Be sure you checked the right box, entered the right number and filled out the right form. If you need to know more, visit the IRS website or your state tax department. You can even call them to ask specific questions if you can't find the answers online.
When you write in your social security number (SSN), be sure to check it a few times for correctness. Don't just do it from memory! Check another document to be sure you are writing it down correctly. Screw this up and the government will think you didn't file taxes at all!
It is important that you include every penny you earned over the year. You cannot miss anything or the government will assume you are trying to cover it up. Even small amounts should be mentioned just to be sure you covered all of your bases. Check online to find out what minimums and maximums the government has set for income which has to be reported.
At the end of your project, you may be worn out and fed up. That said, don't forget to write the date and sign your forms! This simple mistake could lead to disaster. Be sure to check all of the forms over a few times and look for that signature and date at the end.
Be sure to make a copy of the forms as soon as you complete them. It is important that you have a copy at home in case you need to review them later, or use them for another transaction where you have to prove your income, such as applying to rent an apartment. You may also need them in the case of an audit, so save them in a safe place where they are protected from environmental damage.
Now that you know what you need to avoid, you also should learn more about how to do your taxes correctly. Continue reading articles like this one and gain as much knowledge as possible. You may discover a deduction you never knew about or a mistake you have been making which isn't even on this list.
