Top 3 Mistakes When Filing Your Own Tax Returns
While you can file your taxes on your own, there are still common mistakes that individuals often make when preparing their tax returns without professional assistance. Here are the top 3 mistakes:
1. Errors in Data Entry
One of the most common mistakes is making errors in data entry, such as incorrect Social Security numbers, mathematical errors, or transposing numbers. These seemingly small mistakes can lead to discrepancies and may result in delays in processing your tax return or even trigger an audit. It's crucial to double-check all the information entered on your tax forms for accuracy.
2. Overlooking Deductions and Credits
Tax laws are complex, and individuals may miss out on potential deductions and credits that could lower their tax liability. Commonly overlooked deductions include education expenses, job-related expenses, or certain tax credits like the Earned Income Tax Credit (EITC). Failing to take advantage of these opportunities can result in paying more taxes than necessary.
3. Failing to Report All Income
Individuals may unintentionally forget to report all sources of income. This can include freelance or side gig income, income from investments, or income from rental properties. Failing to report all sources of income can lead to discrepancies between your reported income and what the IRS has on record, potentially triggering an audit.
Conclusion
Keeping accurate records and staying up to date on tax laws will always minimize errors when filing taxes. However, if it all seems too daunting, or you’re uncertain about anything, reach out to us here at Genovations Accounting! We’re happy to help!
Call: (615) 657-7800
Email us: office@genovationsaccounting.com
