Taxes are something that we all have to deal with, no matter who we are. Many of us have reconciled with the responsibility of taking care of our taxes each year by filing the activity firmly under the list of “necessary evils” that come with being an adult and living in the world.
Part of the reason that taxes are so maligned, however, is due to how complicated they can be. The inner workings of income taxes, claims, deductions, forms, and filings can become pretty overwhelming, and even if we make a mistake without realizing it. We can still find ourselves in serious trouble with everybody’s least favorite government organization, the IRS.
An audit is a horrible thing, so if you want to avoid this and other legally irritating situations, we’re going to talk about the five most common mistakes people make on their tax filings, and how you can make sure you’re avoiding them. It’s really not hard to keep your hands clean when you’re filing your taxes, and we’re going to talk about how exactly to do that.
Filing the Wrong Status.
Make sure you talk to an accountant or some kind of financial professional if you’re not sure about what your tax status is. This is even something that a simple Google search will be able to tell you, so if you’re not sure about what kind of status you should file, you can probably just look it up online.
Figuring out what your status is doesn’t take a lot of work, but filing the wrong one can seriously mess up your taxes and result in you losing a pretty decent amount of money. Make sure your filing status is right so you get everything that’s supposed to come your way.
Giving Incorrect Info.
Wrong information on your tax return, no matter how it got there, is a bad thing. Make sure every single detail on your income tax return is perfectly airtight, and you do this by keeping records and meticulously accounting for your financial situation from the get-go. Starting good habits early on and keeping them is the best way to avoid any kind of financial trouble when you’re dealing with your taxes.
Keep your calculator ready no matter what, when you do your taxes. You might realize that you’ve made a mistake, but it could be several equations back that you made it. Check and double-check everything that you do before you move onto the next item, because simple math mistakes on your income tax filing can mean big problems.
Claiming the Wrong Exemptions.
We all love to claim exemptions when we file our income taxes, and our kids are one of the best ones. Who wouldn’t like to benefit a little from the fact that your grown son is still living at home? You’ve got to watch out for this, however, as claiming an exemption to which you’re not entitled is a no-no.
Forgetting to Claim.
You must always remember to claim things like your charitable donations and other stuff that’s tax-deductible. If you don’t, you can see yourself paying a lot more than you might have to. Visiting a site like taxrebate.org.uk can help you understand your return a bit better if you’ve got questions.