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Tax season can be a stressful time for many, and it’s easy to make mistakes that could cost you in the long run. To help ensure your taxes are filed correctly and on time, here are some common tax mistakes to avoid:
1. Not filing at all – Failing to file your taxes by the deadline can result in hefty fines and penalties from the IRS. Even if you don’t think you owe any money or don’t have enough income to require filing, it is still important to submit a return each year.
2. Filing late – If you miss the April 15th deadline, make sure you file as soon as possible with an extension form (Form 4868). This will give you until October 15th of that year to file without incurring any late fees or penalties.
3. Incorrect Social Security numbers – Double check all Social Security numbers before submitting your return; incorrect information can delay processing times or even lead to rejected returns altogether!
4. Forgetting deductions & credits – Make sure not to overlook potential deductions and credits when filing your taxes; these could save you hundreds of dollars in taxes owed! Be sure to research what types of deductions may apply for your situation so that none go unused this tax season.
5. Overlooking estimated payments – If you expect a large refund due from overpayment of estimated quarterly payments during the year, remember that those funds must be claimed on your return in order for them to count towards reducing taxable income or increasing refunds received back from Uncle Sam!
6. Not keeping records - It is important to keep accurate records throughout the year so that they can easily be accessed when needed come tax time; this includes receipts, invoices, bank statements etc., which should all be kept organized and up-to-date just in case they need referencing later down the line.
1. Not filing at all – Failing to file your taxes by the deadline can result in hefty fines and penalties from the IRS. Even if you don’t think you owe any money or don’t have enough income to require filing, it is still important to submit a return each year.
2. Filing late – If you miss the April 15th deadline, make sure you file as soon as possible with an extension form (Form 4868). This will give you until October 15th of that year to file without incurring any late fees or penalties.
3. Incorrect Social Security numbers – Double check all Social Security numbers before submitting your return; incorrect information can delay processing times or even lead to rejected returns altogether!
4. Forgetting deductions & credits – Make sure not to overlook potential deductions and credits when filing your taxes; these could save you hundreds of dollars in taxes owed! Be sure to research what types of deductions may apply for your situation so that none go unused this tax season.
5. Overlooking estimated payments – If you expect a large refund due from overpayment of estimated quarterly payments during the year, remember that those funds must be claimed on your return in order for them to count towards reducing taxable income or increasing refunds received back from Uncle Sam!
6. Not keeping records - It is important to keep accurate records throughout the year so that they can easily be accessed when needed come tax time; this includes receipts, invoices, bank statements etc., which should all be kept organized and up-to-date just in case they need referencing later down the line.
