Filing taxes is an inevitable part of life, but that doesn’t mean it has to be complicated. That said, filing taxes can be tricky and one wrong move can cost you money. To help ensure you get the most out of your tax return and avoid costly mistakes, here is a list of the five most common mistakes people make when filing taxes in New York according to a tax prep company in NY.
Common Mistakes to Avoid When Filing Taxes
1. Not Taking Advantage of All Tax Deductions and Credits Available
Savings on taxes can be easy to overlook but it’s a great way to keep more money in your wallet. Many people forget to take advantage of the deductions and credits that they are eligible for, greatly affecting their tax return. Take a few moments each year to review available deductions and credits, and you could save you hundreds of dollars or more on your next tax return.
It’s important to keep in mind that available deductions and credits may be different from year-to-year, so getting up-to-date information can make sure you don’t inadvertently miss out on potential savings. Filing taxes doesn’t have to be stressful. Keeping good track of your eligible deductions will allow you to do so quickly and efficiently, and will get you the most money back!
2. Making Errors with Social Security Numbers
One of the biggest mistakes you can make during tax filing season is submitting your return with incorrect or misfiled personal information. Messing up your Social Security Number can lead to a variety of issues because IRS records are linked to your SS number for certain line items. By taking extra time to carefully enter information, you can save yourself from unnecessary penalties or fees due to data discrepancies.
Another good practice is to double-check your work prior to submission. It’s best to put in extra work ensuring all your personal info is correct and taxes are filed properly. Filing your taxes correctly means avoiding common errors such as misfiling or incorrectly entering your physical address, name, birthdate, and so on. This way, you can reap the rewards of an accurate and timely refund in no time!
3. Not Withholding Enough Taxes Throughout the Year
If you do not withhold enough of your taxes throughout the year, then you could end up owing more than expected during tax season because of extra fees or penalties. To avoid this, make sure that you adjust your withholding amount based on changes in your income or family size as needed.
4. Not Claiming All Dependents
If you have dependents such as children, elderly parents, or disabled family members, then it’s important to claim them on your taxes so that you can get the appropriate tax credit for them. If these dependents do not appear on your tax return then it could mean an unexpected refund at the end of the year, or possibly an audit from the IRS!
5. Basing Estimates Off Last Year’s Return
Finally, one of the biggest mistakes people make is basing their estimates off of the prior year’s return rather than taking into account any changes in their income, expenses, and the like. Doing so could lead to an incorrect return or even paying too much in taxes—so always use up-to-date information when preparing your tax return for the current year!
Filing taxes can be a complicated process but it won’t be overwhelming if you know what mistakes to avoid beforehand! By following these tips and double-checking all information before submitting your return, you should have no problem getting everything right this tax season.
If you want to skip the headache, make sure to invest in tax preparation services in New York from a credible company such as Melanin Tax.
Get Your Taxes Done With Melanin Tax
Tired of dealing with complicated taxes on your own? Melanin Tax is here to help!
We are a quality tax prep company in New York, staffed with experienced and certified professionals who will provide you with the best services possible to ensure that you get the most out of your tax returns.
We make it easy for clients to contact us, whether through email at lorraine@melanintax.com, by phone at (347) – 943 – 6772, or in person at our office located at 1200 Waters Place, Suite 105 in Bronx, NY 10461.
Come on over and let’s see what we can do together! We look forward to working with you soon.