How to become rich

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9 Common and Costly Tax Mistakes

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9 Common and Costly Tax Mistakes, By Stacy Johnson. Mistake No. 1: Paying for tax preparation when you can get it free, Companies such as TurboTax, H&R Block and Tax Slayer offer free tax software. Also, depending on your income level, you may qualify for any number of free services. . Mistake No. 2: Getting your Social Security numbers wrong, Make sure to double-check all of the numbers before submitting your return to ensure there aren’t any transposed or missing digits. Mistake No. 3: Spelling your name wrong, Such a simple error can lead to rejected returns and delayed refunds. Mistake No. 4: Making math errors, The computer can’t know whether the numbers you’ve entered are correct. Double-check everything to be sure your return is accurate. . . Mistake No. 5: Forgetting your John Hancock, This first is by failing to sign a paper return before mailing it. The second is failing to sign your check if you’re sending in a payment. Either one can result in lengthy delays in processing your return. Mistake No. 6: Selecting the wrong filing status, This mistake may be most common for single parents. Mistake No. 7: Missing valuable deductions or credits, If you want to maximize your refund, you also need to take advantage of every tax deduction and credit available to you. Mistake No. 8: Failing to claim all your income, You’re supposed to claim all income for the year, including side jobs, gambling winnings and just about any money you have made in any other way. Mistake No. 9: Sending your return through the mail, A good software program will help you root out deductions and credits you might otherwise miss. It should also guide you to the right filing status. Filing electronically means you could have your refund cash in hand much sooner.

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