Tax season can be stressful, but making errors on your return can lead to even bigger headaches—like audits, missed deductions, or penalties. Here are three common tax mistakes to avoid and how to stay on the IRS’s good side.
1. Common Filing Errors That Trigger Audits
Nobody wants to get that dreaded IRS audit notice. Simple mistakes like incorrect Social Security numbers, math errors, or mismatched income reports can raise red flags. One major red flag? Failing to report all sources of income, including freelance work or investment earnings. Double-check your numbers, and if you’re unsure, use tax software or consult a professional.
2. How to Prevent Missing Out on Deductions
Many taxpayers leave money on the table by not claiming deductions they qualify for. Commonly overlooked deductions include student loan interest, home office expenses, and medical costs. If you’re self-employed, business-related expenses—like mileage, office supplies, and even internet costs—can reduce your taxable income. Research which deductions apply to you so you don’t pay more than necessary.
3. The Importance of Record-Keeping and Documentation
Proper documentation can save you time, stress, and money. Keep receipts, invoices, and bank statements to back up your claims, especially for deductions. The IRS typically audits tax returns from the past three years, so store your records for at least that long. A digital folder or accounting software can help keep things organized.
Final Thoughts
Avoiding these tax mistakes can help you file with confidence and maximize your refund. When in doubt, seek Karim The Tax Pro professional advice—because a little preparation now can save you from costly issues later.
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