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Common tax mistakes to avoid when filing your tax return

Tax Preparation! Tax Time! Tax Forms! NOMINATED!!

Filing your tax return can be a daunting task, and mistakes can be costly. Here are some common tax mistakes to avoid when filing your tax return:

Filing the wrong tax form – Make sure you’re using the correct tax form for your situation. If you’re unsure which form to use, consult a tax professional or use the IRS’s Interactive Tax Assistant.

Forgetting to report all income – You must report all income, even if you didn’t receive a Form 1099 or W-2. Failure to report all income can result in penalties and interest.

Not claiming all deductions and credits – Be sure to claim all deductions and credits you’re eligible for. This includes things like charitable donations, student loan interest, and education expenses.

Forgetting to sign your return – Your tax return is not valid unless you sign and date it. Make sure you sign your return before you file it.

Filing late – Filing your tax return late can result in penalties and interest. If you can’t file by the due date, file for an extension to avoid penalties.

Making math errors – Double-check all calculations to avoid errors. The IRS may correct math errors, but they won’t correct other mistakes.

Using incorrect Social Security numbers – Make sure all Social Security numbers on your tax return are correct. Incorrect numbers can delay processing of your return and may result in penalties.

Failing to report foreign accounts – If you have foreign bank accounts or other financial accounts, you may be required to report them to the IRS. Failure to report these accounts can result in significant penalties.

Claiming too many exemptions – Be careful not to claim too many exemptions, as this can result in underpayment of taxes and penalties.

Not keeping records – Keep all records and receipts to support the information on your tax return. You may need these records in the event of an audit.

By avoiding these common tax mistakes, you can ensure that your tax return is accurate and avoid costly penalties and interest. If you’re unsure about any aspect of your tax return, consider consulting a tax professional for guidance.

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