For many people, tax season incites feelings of stress and worry. Will you end up owing the government money? What if you file something wrong and get audited? Even though it can be a stressful task, there are software programs and experts out there who can help you get your taxes done right. Nevertheless, there are a few common mistakes people make each year. We’ve highlighted them below so that you don’t make the same mistakes when you file.
Waiting too long
Whether you expect to owe money or receive a large refund, one mistake that people often make is waiting too long to file. For people who might owe money to the government, waiting until the filing deadline gives you a very short period of time to gather the funds to pay the government back. If you file early, you can take as much time as you need to save up. And, according to Forbes, if you’re owed a refund, filing early will get your money to you faster, which means you can start the year off right if you have debts to repay, or you’re saving up for a major purchase.
Filing by yourself
For people with one-income households and straightforward financial histories, filing your taxes yourself is probably a good option. But people who work for themselves, have investments in property or stock, and don’t work a typical 9 to 5 job might be better off seeking the help of an expert. There are certain refunds that you can take advantage of in plenty of unique situations that you may not know about unless you’re a trained CPA. Don’t leave deductions on the table.
Messing up the math
One of the biggest mistakes people make on their taxes comes down to something very simple: math errors. Make sure you double-check your work, and double-check your earning statements. Don’t assume that the paperwork your company sent you is correct if you think it’s not. Simple math mistakes could lead to major losses in refunds, or more money owed.
If you’d prefer to have an expert to assist you in filing your taxes this year, click here to view Portfolio Financial Servicing Co.’s tax administration services. Contact us today to schedule a time to meet with a financial advisor, and make sure you get your taxes done right the first time.