Common Tax Mistakes to Avoid

by capitalfn

Posted on May, 1, 2018

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Being Late One of the biggest mistakes many people make in filing their taxes is filing them past the deadline. The IRS has estimated that twenty percent of taxpayers wait a week before the deadline to file. This can cause a lot of stress while also leading to many simple mistakes in the rush to file in time. If you’re worried you may not have enough time to complete your taxes, you can always file for an extension.

Arithmetic Errors Math can’t be everybody’s strong suit. Some of us are too proud to use a calculator or can just never find one. Accidentally making errors of any mathematical nature be it addition subtraction, multiplication or division is a big no-no for your taxes. It’s one of the most common mistakes that people make. An easy way to avoid that is by going to a professional accountant or tax service. Using a calculator or having a family member or friend look over your calculations could also serve to mitigate the risk of any numerical mistakes.  

Forgetting About Side Jobs Sadly, money earned from freelance work and side jobs does get calculated into your overall income. Forgetting about reporting income earned from secondary sources can become a big headache especially since many of these secondary income sources will have likely reported any money paid to you. Trying to remember any side jobs or freelance work can be difficult, but looking through emails or earning history can help you to figure out if you forgot about any earnings.

Using An Incorrect Social Security Number Or using none at all. According to the Internal Revenue Service, this is one of the most common mistakes people make in filing their taxes. It’s very important to make sure that you include your social security number and that it is, in fact, the right one. Using the wrong social security number or not using one at all can cause all kind of delays and bureaucratic headaches for you and your tax filing.

Incorrect Charitable Contributions Tax laws regarding writing off charitable contributions are notoriously complicated and difficult to understand. An example of this would be that in order to write off food or clothes given to charity, they must have been in decent shape when you donated them. The laws and policies don’t get any less confusing from there. If you have any questions regarding possible charitable contributions, it may be a good idea to visit an accountant or tax professional.

Not Signing Forms This one seems like another no-brainer, but one of the most common tax mistakes is also one of the most easily avoidable. In addition to remembering to sign forms, it’s also important to remember to write the correct date.

Where To Go If you’re looking for an accounting firm in Los Angeles to help you avoid these mistakes and maybe even find some more deductibles you didn’t even know about for your tax prep in Los Angeles, Capital Financial is the place to go.

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