Not Reporting All Income: With the rise of gig economy jobs and freelance work, it's essential to report all sources of income
Overlooking Tax Deductions and Credits: Many taxpayers miss out on valuable deductions and credits such as educational expenses
Filing Status Errors: Choosing the wrong filing status can significantly affect your tax liability and potential refunds.
Not Saving Receipts and Records: Keeping detailed records and receipts for deductions and credits claimed is essential if the IRS requests documentation.
Ignoring Retirement Contributions: Not maximizing contributions to retirement accounts like 401(k)s and IRAs is a common oversight.
Miscalculating Home Office Deductions: For those who are self-employed and working from home, accurately calculating and claiming the home office deduction is crucial.
Failing to Account for Cryptocurrency Transactions: With the IRS focusing more on cryptocurrency, failing to report transactions can lead to penalties and audits.
DIY Tax Filing When Professional Help is Needed: While DIY tax software can be effective for simple tax situations
Missing Deadlines: Failing to file taxes or request an extension by the deadline can result in penalties and interest.
Not Updating Personal Information: Failing to update your personal information, such as your address or marital status, can lead to missed notices from the IRS and delayed refunds.
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