Everybody knows that filing taxes is usually not an easy process. With constantly changing rules, new forms, and an ever-growing list of potential mistakes that filers can make, it’s important to make sure you’re not falling into common tax mistakes. Check out these tax tips we regularly turn to here at Blair Stover, whether filing as an individual or a business.
Keep all of your receipts, documentation, and other paperwork organized throughout the year, which will lend to an easier filing process, and will help you refer back to your tax claims if need be.
Stay up to date.
Be sure to update your household status, which can change after a divorce, new children, adult children moving back home, and other situations
Many filers forget to pay for previously deferred taxes, such as those resulting from the first-time homebuyer’s credit or converting a traditional IRA into a Roth IRA.
Consider charitable donations.
Keep up with receipts and documentation for all charitable donations throughout the year. Those who donate less than $500, or items worth less than $500, can report those donations on their tax forms, while those who have donated more than $500 need to include an additional form.
Get with the times.
Filing electronically, rather than through paper mail, speeds up the refund process and cuts down on the hand-written process (which can lead to math, spelling, and other errors). Many individuals can file electronically for free.
It’s always better to file earlier than later. If you’re due a refund, you’ll receive the refund sooner that way, plus you’ll be able to cross filing taxes off your list. As soon as you have your necessary forms from your employer (such as a W-2 or 1099), you are eligible to file.
Simply put, be sure to file all of the required forms. Double – or triple, or quadruple – check to be sure you’re doing so. Also be sure to double check your math!
Any tax tips to add, veteran filers?