The most common mistakes people make when filing taxes are incorrect use of deductions or credits, neglecting to report countable income, failing to adjust withholding or estimated payments, and missing or incorrect personal information.
It’s important to not overlook deductions and credits you may qualify for such as retirement account contributions, education expenses or child tax credits. It’s also important to ensure all income is reported, including winnings from gambling, freelance or side work, in addition to unemployment compensation and social security in some situations. When income is not accurately reported, it can lead to underpayment penalties and interest.
Additional mistakes people make when filing taxes include missing deadlines, not keeping diligent records for the required timeframes and failing to attach the necessary documentation to your return.
Utilizing tax software and working with a tax professional can help tremendously to make sure all necessary income and information is being reported, and even more, that you are taking advantage of allowable deductions and applicable credits to ensure you are not overpaying in taxes.
If you have any questions about the topic discussed in this article, or any tax matter, please give us a call at Bononi & Company in Greensburg, PA at 724-832-2499.