26 Aug - Avoid these mistakes in your tax return

1. Miscalculating Numbers – Math mistakes are one of the most common errors – Can reduce your tax refund or result in you owing more.

2. Forgetting to Add or Writing Wrong Name – Incorrect names are often a problem for new wives – IRS will scrutinize names that don’t match up.

3. Omitting Social Security Numbers – IRS no longer put SSN on tax labels – Vital to claiming several tax credits.

4. Forgetting About Estimated Payments – 15 million self-employed people – Payments each quarter need to be made – You owe if income isn’t subject to withholdings from: – Interest income – Dividends – Gains from sales of stock or other assets – Earnings from a business – Alimony

5. Not Reporting Other Sources of Revenue – Must report all income from any source – No minimum amount taxpayers can exclude from gross income – Gambling, bartering, prizes and awards (with few exceptions) are taxable.

6. Not Withdrawing from IRA – Those who inherited an IRA or are 70 years or older must withdraw – Otherwise a 50% penalty will be incurred – Even tax-free Roth IRAs sometimes have withdrawal requirements.