Preparing for the tax season or even filing your taxes late is stressful. You do not want to make costly mistakes or find yourself facing an auditing nightmare, but it may not always be possible to hire a professional to work on your taxes. When you are filing your taxes personally, take steps to avoid the most common mistakes that can land you in an uncomfortable or embarrassing situation.
Prepare the Paperwork Early
As soon as you receive your W2 forms from your employer, gather all of the documentation related to your taxes and start working on the paperwork early. A common mistake that causes mathematical errors and accidents on your taxes is procrastination.
Never wait until the last minute because it reduces the time you have available to double-check every document and make sure you put the right numbers in the appropriate locations.
Include Every Source of Income, Even the Small Ones
Do not forget to mention interest income from your savings accounts or any gifts that you received for opening a bank account. Mention every source of income that you received throughout the last year because the other party will report that information to the IRS.
Missing sources of income on your taxes can send up a red flag that results in getting audited. Mention your investments, interest income, retirement income or any other source of money that you receive, even if it is not taxable.
Use an Online Filing System
When you want to learn how to do your taxes, the easiest solution is an online filing system. The reason online systems are better than filling out the forms by hand is that it makes it easier to double-check your math and catch spelling errors that can cause strife after you send the paperwork to the IRS.
Check Every Line Carefully
Before you send your tax paperwork to the IRS, double and triple check every line to make sure it was the correct space for the information. Tax paperwork will give you the line from your W2 form and clear directions to avoid complications, but accidentally forgetting to put in a zero in one line can ruin the entire process of filing because it results in math errors and major mistakes.
Read through the document and check for math errors, improper placement of numbers or other simple mistakes that can have big consequences. Never send your tax paperwork without checking it at least once.
Carefully checking your tax documents and double-checking the paperwork can save heartache and unexpected consequences during the tax season. If you get stuck, contact Advanced Tax Solutions to help