Mistakes That Cost You Major Money When Doing Taxes

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2018-07-22 | 15:11h
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ReviewsMistakes That Cost You Major Money When Doing Taxes

July 22, 2018 Leave a CommentAMP

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If you have an individual tax identification number, you have to file taxes with the IRS if you have any sort of income. Check out these common mistakes you should avoid when doing your taxes to help save yourself some time and money.

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Using the Wrong Identification Number

You’ve had your ITIN number for a while, but you may still get a few of the digits mixed around in your head. Before you send in any official documents, double and triple check that you have included the correct number. Without your ITIN, the IRS may not realize you have paid in the proper taxes. This can lead to audits and other unpleasant experiences.

Omitting Some Income

Are you one of the many taxpayers who thinks you don’t have to claim income if you don’t receive a W2 or 1099 form from the employer? If so, you may be neglecting to pay some taxes without trying to. If you were ever to get audited, you may end up getting fined for this mistake.

Messing Up Your Math

If you fill out a paper form, you have to make sure to do all of the math on your own. Even if you file online, you could still make mathematical errors by entering in a number incorrectly. Using the wrong numbers or doing the math wrong could end up costing you a lot of money down the road.

Using the Wrong Status

When you read through the tax documents, you may notice a few different status options, including the following:

Single
Married
Qualifying Widower

Using the right filing status can ensure you pay in the correct amount of taxes.

Forgetting Credits and Deductions

Credits and deductions work to reduce the amount of taxes you owe. If you forget to use one of the available deductions or credits, you may end up paying in more taxes than you really need to. It may take some time for you to figure out exactly what you are eligible for, but it’s worth it.

Filing taxes isn’t always easy. Get step-by-step help with your W7 form to ensure you start off the filing on the right foot.

Tammie~
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