Saving a Buck: Tax mistakes
When it comes to your taxes, just one seemingly small mistake can cost you a lot of money, in the form of a larger tax bill, less of a refund or, in some cases, an audit. Here’s a countdown of the top four mistakes CPAs say people make on their taxes.
When it comes to taxes there’s a lot of room for error.
Number four on our list, not being aware of some the changes.
Christy Sughru, a CPA with Peters and Chandler, says, “This year’s tax form is different than last year’s tax form.”
For example, this year the Making Work Pay and Home Buyer tax credits are no longer in play.
Sughru says, “Unless you are aware of those changes, it’s easy for you to miss some possible deductions or credits they qualify for.”
Which brings us to mistake number three, choosing an under qualified tax preparer.
Sughru says, “You might want to find out their credentials and their training.”
While CPAs like Christy are the most highly trained, there are other tax preparers who aren’t accountants.
She says just be careful which one you choose.
Sughru says, “You don’t want to choose a preparer who’s going to base their fee on your refund or what they can save you.”
Number two is all about the numbers; Social Security Numbers, your income, charitable contributions, even your account numbers for direct depositing your refund, they can make your head spin, but getting them right is essential.
Sughru says, “Make sure and double, triple check name spelling and Social Security numbers.”
Just one wrong digit can cost you big, potentially changing the outcome of your tax bill or refund, or causing delays in the process.
The biggest mistake people make is not reviewing and signing off on the work.
Sughru says, “Even the most experienced CPA will prepare a return and take the time to review it.”
A careful eye is key to getting this tax season behind you.
Newlyweds and those who have added a child to their family are the most susceptible to those small mistakes.
When adding an extra person to your return there is room for error.
Sughru says be sure to look over everything a couple of times before sending it off to the IRS.