The federal government has an uncanny ability to find even the most minute tax mistakes you may make. With more and more tax audits occurring each year, be sure these seven common mistakes below don’t land you under the microscope of the IRS.
1. Perhaps the biggest mistake people make is forgetting the tax deadline and filing late. Even by being only a few days late with your filing with have you paying out of pocket.
2. Another mistake individuals make is not collecting all of the required paperwork in order to do you taxes properly. Sure, W-2s are a no-brainer, but are you so sure you have all of your needed 1099s? Miscellaneous income you earn is independently sent to the IRS via a 1099, so you are not doing yourself any favors by under reporting your income. Make sure you account for all income to avoid an audit.
3. Not that you would be penalized for doing so, but if you want your return sent directly to your bank account, be sure to list the proper routing and account number. Nothing more frustrating than waiting on a tax return check which was sent to the wrong location.
5. If after doing your taxes you find you owe money, don’t panic! Simply not filing your return is not the answer to this conundrum. If you cannot pay right away, the IRS will take payments over time.
6. If you need help with your taxes, but don’t want to pay to have them done, some individuals may qualify for free help. If a person earned less than $50,000 and is filing a simple tax return they can call 1-800-906-9887 to find out more information on the program.
7. Lastly, don’t forget to take all of the deductions you qualify for. There are a number of deductions some people have never considered. For example, one can take a deduction in regards to their gambling losses. Of course there are a number of steps you must take in order to prove your gambling losses, but a deduction may exist for that $1.00 scratch off lotto ticket you lost on back in June.
The IRS is a large organization which oversees the filings of millions of people’s taxes each year. Don’t make the mistake that they do not care about one individual not filing their taxes. Ask the millions of people who have been audited in the past few years, they will tell you the IRS cares about everyone!