Each year, you will be required to file your taxes by April 15. Filing taxes can cause stress and anxiety. You want to make sure you get all the deductions you deserve, so you will not owe money to the Internal Revenue Service. Unfortunately, many people make mistakes that can cost them money; therefore, here are eight common mistakes that you should avoid in 2013.
- Procrastinating: April can sneak up on you before you know it. You then find yourself scrambling to obtain W-2 forms, receipts and other documentation that you might need. Waiting until the last week to file taxes can cause worry and tension. It can also cause you to make mistakes on your tax return.
- Missing tax deductions: You need to look at all possible deductions that you can claim. Some of the most commonly missed deductions include volunteer expenses, non-cash charitable donations and education tax deductions. You can also deduct expenses for job hunting. Research your options and take advantage of all possible deductions.
- Invalid Social Security Number: Your social security number is an important nine-digit number. Since you use it frequently, you would not think you could get it wrong; however, the IRS states they get thousands of returns with the social security number missing or with the wrong number.
- Not including all income: You include income from your primary job; however, you might fail to include income from miscellaneous jobs. Do not forget to add income from 1099 forms or any other random income.
- Incorrect math: You would think that adding and subtracting would be simple; however, many people turn in returns with the wrong math. Make sure you use a calculator, and double check your math. The Internal Revenue Service will check your return, and the error could work in your favor.
- Forgetting to sign: Your tax return must be signed for it to be valid. The IRS will not accept it if it is not signed and dated.
- Forgetting to pay: If you owe money to the IRS, you must send in your payment with the form. It might be a good idea to write your tax form number and year on your check. If you forget to sign your return, the IRS will not accept it, and your return will be considered late, so you might be required to pay late fees.
- Using the wrong forms: You can use three different forms when filing your taxes. Make sure you look at all the forms, and decide which one is best for you. The IRS likes you to use the easiest form to speed up processing.
This article was provided by Todd S. Unger, Esq., a New Jersey tax attorney that can help individuals and small businesses with unfiled taxes.