Filing your taxes is complicated – there are so many rules and regulations to keep track of, and it’s easy to make a mistake. However, a mistake on your taxes could be costly. If the IRS catches your mistake, you could end up having to pay penalties. Here are some of the most common mistakes people make on their taxes that you should avoid this year.
Erroneous Calculation
If you do your taxes manually instead of using a calculation software, you’ll have to do some math. When you’re adding, subtracting, and multiplying various parts of your income, it’s easy to make a mistake – and those errors can result in overpaying or underpaying your taxes.
Filing Late
If you wait to start your taxes until the last minute, you could end up filing late. If you miss the filing deadline, you’ll end up needing to pay interest. While you do have the option to file an extension, it’s best to just get your taxes done as soon as you can to avoid any problems later on.
Missing Key Deductions
If you’re not taking the deductions available to you, you could end up heavily overpaying in taxes. This is particularly important if you work as a freelancer or run your own business, as there are so many deductions that are available to you. Throughout the year, start keeping track of any expense that’s related to your business. When it comes time to file, you can then see if any of these items qualify as a business expense.
Leaving Boxes Blank
If you’re feeling overwhelmed by your tax forms, it can be tempting to leave some of the boxes blank. However, it’s important to resist that temptation and take the time to fill them out. Incomplete tax forms can get you in trouble with the IRS later on.
Trying To Go It Alone
Sometimes, when you are unsure about the process for filing tax returns, it can be tempting just to give it a go and see what happens. However, not only could you be penalized for filing taxes wrongly you also risk causing yourself more hassle in the future. The best way to avoid making a mistake on your taxes is to hire a CPA. Tax professionals know the law inside and out, and will take the stress out of doing your taxes. Abbo Tax CPA is a San Diego CPA that you can trust for all your tax preparation needs. Contact us today to schedule an appointment.
