Avoiding Tax Mishaps
The excitement of the new year has passed and the dread of tax season is upon us. Depending on your situation, the process of filing your federal and state taxes can be daunting and overwhelming. Small mistakes can lead to big problems, so brushing up on some of the most common mistakes made can prevent you from getting careless and causing yourself headaches down the line.
Checking the Numbers
As redundant as it sounds, being sure to double and triple check that all of your data input is correct can play a huge role in streamlining your tax-filing process and ensuring things aren’t held up or rejected for easily avoidable mistakes. Take another look at your filing status, names of yourself and any dependents, Social Security numbers, bank account numbers, etc. Better safe than sorry comes into play quite heavily when tax-filing. Double check your math, triple check your data, and avoid making some of the most common tax-filing mistakes by Americans. [1]
Assess Your Tax Documents
Mistakes can be made by all parties involved during the tax-filing season. While entering information from forms like W-2s, ensure that all the numbers line up with your personal records. The IRS will check to make sure the income provided by you and these documents line up, so if something is wrong, give yourself time to reach out to the employer or business involved and obtain a corrected document. [2]
The Standard Deduction
It’s important to not simply assume that the standard deduction will be right for you. Before making that call, itemize your deductions and assess the situation. These decisions can impact how much you owe in income taxes. Large medical or dental expenses, mortgage interest and property taxes, business losses, and charitable contributions can all lead to further deductions and a lower income tax bill. [5]
Being Mindful of Early Withdrawals
Avoid taking unexempted withdrawals from your retirement accounts if possible, but when necessary, remember to include them in your tax filings to avoid incurring interest and penalties on the taxes due. [6]
Tax season is stressful and consulting financial professionals beyond a tax specialist can help to mitigate future tax burdens and put you in the best position possible headed into the oncoming tax-filing season and beyond. To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff-member is awaiting your call Monday through Friday, 9AM to 5PM.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.
