- Failing to report all income: Reporting all income, including freelance and gig work, is essential for avoiding tax mistakes.
- Claiming incorrect deductions: Double-check that you are claiming the correct deductions and that you have proper documentation for all deductions.
- Miscalculating estimated taxes: If you are self-employed or receive income that is not subject to withholding, it is important to accurately calculate and pay estimated taxes to avoid underpayment penalties.
- Failing to keep records: Keeping accurate records of all income and expenses is essential for avoiding tax mistakes and being able to prove your deductions if audited.
- Filing incorrect tax forms: Make sure to use the correct tax form for your filing status and type of income.
- Improperly reporting rental income: Rental income and expenses must be reported accurately on your tax return.
- Failing to report foreign income: If you have foreign income, make sure to report it on your tax return and be aware of any foreign tax credits or exclusions that may be available.
- Not taking advantage of tax credits: Tax credits can significantly reduce your tax bill, so make sure to research and claim all credits for which you are eligible.
- Failing to file a tax return: If you are required to file a tax return, it is important to file on time to avoid penalties and interest.
- Neglecting to sign and date your return: Make sure to sign and date your tax return before submitting it, as a return that is not signed is considered invalid.
