With the new year in full swing, tax season is just around the corner. Filing federal income taxes can be a long and complicated process, and mistakes are bound to happen here and there. As many of us know, these small mistakes can cost you big in tax returns and penalties. That’s why it never hurts to brush up on the basics involved with filing your taxes. Knowing the most common tax-filing mistakes is critical to preventing any slips and the serious headache that could result in IRS scrutiny. Keep reading to learn how you and your family or business can avoid making mistakes this tax season.
1. Confirm Your Numbers
2. Be Careful
3. Is the Standard Deduction Right for You?
4. Avoid Early Retirement Account Withdrawals if You Can!
Lastly, making an early withdrawal from a retirement account without an exempted reason can cost you. Furthermore, if you forget to put that information in your tax reports, you will get a letter from the IRS stating that you owe an additional tax on the early withdrawal amount plus the interest and penalties that have accrued on that additional amount until payment is made.[6]
Double-Check!
Some of the best advice when it comes to filing your taxes is to double-check! It’s better to go back and give yourself the time to review your information than it is to deal with the pain and consequences of silly mistakes. Be sure to confirm your entries, look out for typos, and avoid leaving anything blank.
[1][2][3][4]: https://www.irs.gov/newsroom/common-tax-return-mistakes-that-can-cost-taxpayers
[5]: https://www.equifax.com/personal/education/personal-finance/avoid-tax-mistakes/
[6]: https://pro.bloombergtax.com/brief/common-mistakes-in-tax-preparation/
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