The US tax code works nearly 4 million words. But even if the tax rules are complex, most errors that taxpayers are are pretty simple
Here are 10 of the most common tax mistakes that trip us and how to avoid :.
Do not file on time
IRS estimates that 20 percent of taxpayers wait a week before the deadline April 15 filing to file their tax forms returned.
Filing an extension will give you more time to file your forms, but you still need to pay taxes due by April 15. If not, the IRS will charge you interest.
If you need to request an extension, you can calculate your taxes owed and the free 4868 file form with TaxACT Free Federal Edition.
Then log at the end and the file whenever you are ready for the Oct. 15 filing deadline extension.
missing or incorrect information
one of the most common tax mistakes is leaving an empty box or entering a wrong number on a social Security number.
The best way to prevent these errors is to import the return of last year
mathematical errors
The formulas on tax forms are notoriously difficult. "Add line 8 line 32 and multiply by .356 if your AGI exceeds $ 50,000."
Save yourself a headache and use a tax preparation software does the calculations for you.
the late fall on the latest tax
not only the complicated tax code, but Congress changes every year.
Be sure to check out the news page IRS, or subscribe to the blog TaxACT important updates so you do not miss out on the value of deductions or attempt to claim a deduction was eliminated.
Do not keep a copy of your statement
tax experts recommend keeping a copy of your tax return for at least three years. Tweet this
That's how long the IRS can legally verify you to the gross under-reporting of income.
inaccurate account numbers
Be sure to check your bank account and routing numbers for direct refunds deposited or electronic tax payments.
Entering incorrect information can result in a refund or late payment penalties and interest.
lack tax relief
the IRS is not famous for his generosity, but there are a number of tax credits and exemptions offered to families and students.
tax credits as child credit the $ 1000 can significantly reduce your tax bill, so do not miss.
And do not automatically take the standard deduction. The owners in particular should detail their larger deductions and see if they are more than the standard amount
Filing of bad tax forms
The IRS has three different forms of taxes: . 1040, 1040A and 1040EZ (the differences between each type is explained here).
If you itemize deductions, for example, you can not use the simplified version of EZ, because you need to include a separate annex A.
The same is true to account for the profits and losses of a company (you need to Appendix C).
Deposit in poor condition
IRS applies the tax rates on income and the price different standard deductions based on your filing status :. single, married filing jointly, married filing separately, head of household or qualifying widow (er)
married couples filing jointly, for example, are entitled to twice the standard deduction for single filers.
Also note that married couples filing separately are subject to different rules as joint filers.
For example, if you file separately, both spouses must apply for either the standard or detailed deductions, but not one of each.
Use this calculator tax bracket to find out what tax bracket you are and estimate your 2014 tax rates.
not filing at all
Even if you can not pay your total tax bill, statement and contact the IRS to start a payment plan.
interest rates are low and there is much better than not to file, which can result in penalties and potentially even tax evasion.
Becoming aware of these common tax mistakes that you are about to file your taxes. These simple mistakes could end up costing you your hard earned money or preventing your getting tax relief you deserve. You have it.
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