It is Tax Season! From coast to coast, taxpayers are scurrying to gather tax documents and to file their 2016 tax returns. Good tax planning can avoid 7 common tax filing mistakes.
WHAT ARE THE GOALS OF GOOD TAX PLANNING?
- Be organized (If you have savings and investment accounts, companies are issuing 1099 summaries of interest and dividends and capital gains in February)
- Avoid mistakes
- Be aware of changes (Filing deadline this year is Tuesday, April 18th )
- Pay no more or less than owed
SPEAKING OF MISTAKES, WHAT ARE THE MOST COMMON TAX FILING ERRORS?
- Wrong or missing Social Security Numbers
- Wrong names (ex: single vs. married)
- Filing status errors
- Math Mistakes
- Errors in figuring credits or deductions
- Wrong bank account numbers (ex: e-deposit of a refund)
- Forms not signed or dated
WHAT ARE SOME OTHER FACTORS THAT INCREASE THE CHANCE OF AN AUDIT?
- Higher income level
- Large charitable deductions
- Self-employment
- Mistakes
