TAXES aren’t the only thing happening from January to April.
People also have to take kids to soccer practice, go to work, cook dinner, and do other daily chores.
Because of this, it is important not to get overwhelmed with time and procrastinate on your taxes as this will result in tasks being completed in a hurry.
Rushing tasks are where most mistakes happen, and these three mistakes could cost you money this tax season.
1. Filing your taxes late
The first mistake to avoid this tax season is late filing and paying your taxes.
The penalty for non-filing is 5% of the tax you owe for each started month that you are late.
If you owe taxes, the non-payment penalty is 0.5% of the unpaid amount due.
Time, forgetfulness and procrastination are common enemies for most adults.
In fact, according to researchers and Loudspeaker Piers Steel95% of us procrastinate to some extent.
However, there are tricks to help you get your taxes done.
The first thing you can do is promise yourself a reward after completing it.
The type of reward is entirely up to you, but some ideas might include a night out, a cheat meal, or a shopping spree.
You can also ask a friend, family member, or roommate to check on you until your taxes are complete.
2. Choosing the wrong login status
The next thing to avoid is choosing the wrong login status.
You can submit as a single person, head of household, married, put together, or widower.
However, choosing the wrong status can be a costly mistake.
For example, if you qualify for head of household status but file as single, you could find yourself in a higher tax bracket and pay more.
It is therefore important to take the time to file your tax return.
If you think you won’t have enough time to do your taxes this season, take a look at how much a tax professional will cost you.
Alternatively, you can apply for an extension.
3. Making the wrong choice of breakdown versus standard deduction
The last mistake you don’t want to make on your 2021 tax return is choosing the wrong deduction method.
The goal is to choose the deduction method that saves you the most money, which depends on how many deductible expenses you have.
Tax software like Tax Act or TurboTax are great tools to help you make an informed decision.
In the end, life can get pretty hectic, but you don’t want to cut corners on your taxes.
There are many professionals, resources, tax software, and organizational tools that can help you get your taxes done correctly and on time.
In addition to these three tax blunders, The Sun explains how cryptocurrencies are taxed.
The Sun also discusses when tax refunds are coming out in 2022, key tax changes for 2022, and five ways to boost your tax refund.
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https://www.the-sun.com/money/4822526/tax-mistakes-avoid-how/ Three tax mistakes you can’t afford this filing season