Most people will make mistakes on their taxes at one point
or another. However, some mistakes are more common and, in some cases, more
detrimental than others.
Obviously, you should aim not to make any mistakes
whatsoever when you file your tax returns. But, at the very least, you should
aim not to make any of the most common and most easily avoidable tax mistakes.
Filing Late
Perhaps the most common tax offense is waiting too late to
file. The tax deadline each year is April 15; at that point, you absolutely
need to have your taxes sent in and done with. Find a way to stick that date in
your mind, and then don’t forget it.
However, instead of just aiming to file by or on April 15,
do your best to file even earlier than the cut-off. You’ll likely get your
refund a lot sooner if you do and if you are entitled to one, of course. Plus,
employers usually send out W-2s and 1099s right at the start of the new year,
so there’s really no reason not to file as soon as you receive them.
Failing to Make Necessary Updates
When you go through a major life change, such as a marriage
or the birth of a child, there’s a pretty good chance that your filing status
is going to need a change too. If you fail to make a necessary filing status
change, you could end up paying too much or too little in taxes. Either
scenario is bad.
If you don’t really understand the whole filing status
thing, whether or not you need to make a
change, or how a necessary change is
going to affect you and how you can limit any negative effects, remember that
you can always ask an accountant for advice.
Forgetting to File Certain Forms
Remembering to file more common and basic forms, such as
your W-2 for your main job, is usually pretty easy. However, if you’re doing
side work that requires a 1099 or have some kind of new or unusual-for-you form
to file, it’s easy to forget all about it or to put it off until it’s too late.
Don’t make that mistake. Find out early on all the forms that are needed for
you for the tax year- an accountant can really help with figuring that out- and
then get on it!
In fact, “get on” all of your required tax-related tasks.
The sooner you start getting things together, the less likely it is that you’ll
end up making a serious and potentially costly mistake.