Did You Know: There Are Common Tax Return Pitfalls to Avoid?
Did you know:
Tax preparation is not something that most people look forward to tackling. It can be distressing to try and make sense of a rat’s nest of paper receipts, canceled checks and financial statements. Tax season can be one of the most stressful times of the year, as people anticipate difficulty in filing and are nervous about an unanticipated tax bill hitting them.
Now that you know – here’s what it means!
It is very common for people to get stressed when they think about filing their taxes which can make it easier to make mistakes or make a person more prone to make poor decisions which can compound stress even further.
And here are the details:
There are some common pitfalls people should avoid when doing their taxes:
- Not filing a return or extension because you don’t have money to pay the taxes. There are payment options you can set up with the IRS. Not filing on time and not paying are considered as two separate issues with the IRS and both carry penalties. Contact the IRS right away to notify them if you are unable to pay.
- Not saving your receipts or other documentation. In particular, if you make charitable contributions, the IRS requires you to keep a record of any cash donation from the charity showing the date of the contribution, the amount and the name of the charitable organization.
- Not checking your data before you file. Entering incorrect data or making simple typos can delay your refund.
- Not dealing with back taxes. Ignoring the problem will not make it go away. Work with the IRS to resolve the issue. There are programs available to help you resolve tax debt.
- Not using your refund wisely. It is tempting to use that refund to buy a new television or the latest technology device. But, if you carry large amounts of credit card debt or have inadequate savings, your best play is to use your refund to address those types of financial challenges.
If you have a complicated return or are unable to file your own, it can be a worthwhile investment to hire a professional tax preparer. Don’t get stressed about your tax return, we can help. Start Here.
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