| Everyone wants to avoid mistakes on their taxes. | | | | don't do this though. |
| Going through an audit is stressful and if you | | | | Not adding to retirement savings |
| make mistakes, you are more likely to be | | | | Your retirement savings are very important for |
| selected for an audit. If you are careful to avoid | | | | your future, but beyond that, they can help you |
| these tax mistakes though, you can feel more | | | | save money on your taxes in the short term. |
| confident. | | | | Certain retirement funds are tax deferred which |
| Incorrect deductions | | | | means that paying into them will reduce your |
| If you are going to itemize your deductions, make | | | | gross earnings. |
| sure that you understand the laws regarding | | | | Not submitting all relevant documents |
| them. Some things may not be eligible or may | | | | If you are itemizing deductions or have anything |
| only be partially eligible. | | | | on your tax form that would make it stand out, |
| Not starting early | | | | you should make sure that you submit any |
| Too many people wait until the last minute to file | | | | supporting documents to avoid an audit. |
| their taxes. They may be surprised to find that | | | | Withholding too much |
| they owe money and not have that money | | | | Many people have too much money withdrawn |
| available. Or they may find that there is | | | | for their taxes. Sure, they get a big refund in the |
| something they cannot answer. Filing early | | | | spring, but they've given the government an |
| ensures that you know what to expect and can | | | | interest-free loan. With a bit of fiscal responsibility, |
| get any questions you have answered. | | | | this money could have been earning them |
| Lying about income | | | | interest. |
| Self-employed people should make sure that they | | | | Not keeping the receipts for your deductions |
| keep good records and report all income that | | | | If you are going to itemize your deductions, you |
| they receive. The companies who pay them are | | | | need to make sure that you keep your receipts |
| also required to report this to the IRS so the | | | | as proof. |
| IRSO will know if there is a discrepancy. | | | | Math errors |
| Trying to avoid paying | | | | Surprisingly, many returns are flagged for audit |
| Some people realize that they own money to the | | | | each year just because of simple math errors. To |
| government and try to avoid paying by simply | | | | ensure that you don't have any math errors in |
| not filing. This is illegal and you can get in a lot of | | | | your forms, go over your work several times, |
| trouble for doing this. | | | | use tax filing software or hire a tax professional. |
| Not offsetting stock gains | | | | When filing your taxes, it's essential that you are |
| If you sell a stock for a gain, then you will have | | | | very careful and try your best to avoid these tax |
| to pay taxes. You can balance this out by selling a | | | | mistakes. |
| losing stock and deducting the loss. Most people | | | | |