If you’re like me, just the word “taxes” ties your belly in knots!
She told me, “The number one mistake that taxpayers make is not filing their taxes on time.
Many people wait until the last minute to file, and that can lead to missing important deadlines.
The penalty will be five percent of your unpaid taxes each month up until 25 percent.
If you file more than 60 days late, there are additional penalty fees.
You’re paying enough taxes already.
Don’t let your procrastination cost you even more.
Mishra told me in our interview, “Math errors can cause a headache with the IRS.
This will keep you right with the IRS.”
This can lead to problems if you’ve already spent the money and now owe.”
If you don’t, you could end up paying for it later.
However, the taxpayer can be subject to the underestimation penalty.
This is based on what should have been paid with each estimate and was not.
It is not huge, but it is throwing money away."
Underreporting charitable contributions
Many taxpayers miss out on deductions from charitable contributions.
to make the most of these deductions, keep your receipts and take pictures.
Don’t stop with receipts, either.
Several organizations like Goodwill and the Salvation Army have valuation lists."
Kibler shared this pro tip as well.
you’re free to also deduct parking fees and tolls in addition to the standard mileage rate."
This includes homeowners, those with large charitable contributions, and people with large medical expenses."
While it may seem like extra work, double-check you keep all of your receipts for deductions.
You’ll be glad you did if the IRS comes knocking on your door.
If so, you may want to rethink your strategy.
Sometimes taxpayers owe much more than the company deducts.
Secondly, after you complete your taxes you might put that saved money back into your bank account.
It is a great feeling to put extra money in your bank account after the tax season!"
Wouldn’t you rather put moneyintoyour account rather than running dry during tax season?
If so, follow Dayan’s advice and start saving money for taxes now.
Forgetting to take a deduction for job-hunting costs
Are you looking for a job?
Not claiming supplemental income
Do you have a secondary source of income?
Don’t forget to account for it when doing your taxes.
Not paying this supplemental income tax can come back to haunt you in the future."
You’ll be glad you did when tax season rolls around.
