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With tax season here, many people have begun tax preparation. While you may want your refund, it’s best to take time and care with your tax return, so you don’t make any errors. While most errors can be corrected, others can incur penalties and late fees if you’re not careful. Here are a few things to keep in mind when filing your taxes this year.

Common Tax Mistakes & What You Can Do to Avoid Them

1. Math Errors

If you spend too much time tax preparationfocusing on it, the numbers and figures on your tax return are bound to blur together. This can lead to problems with your equations if you’re pressed for time and trying to complete tax preparation in a hurry. Using calculators and tax software is best to check calculations for errors and ensure you’re writing the correct numbers. 

2. Overlooking Ways to Save 

Deductions and credits are your two best friends when it comes to tax preparation. Deductions reduce your taxable income, while credits shave money off your tax bill. Deductions can be made for things like medical bills and interest on mortgage payments, while credits are available for child care and education. 

3. Not Including All Forms of Income

In addition to your wages, you must also include other forms of income on your tax return. This includes cash earned from side jobs, as well as earnings from stocks and any pensions or benefits you receive. If you fail to declare income, you may be subject to fines and penalties from the IRS.

4. Not Double-Checking Your Return

Did you sign and date your return? Are you sure your Social Security number is correct? What about the banking and routing numbers? Whether you’re filing a paper return or doing it digitally, make sure you check and recheck these areas for accuracy.

 

Getting help with tax preparation is another way to avoid common mistakes. In San Marcos, TX, Master Finance has the tools and the knowledge to guide you through the tax planning process. Along with checking for errors and mistakes, these financial gurus can also review your situation to determine what credits and deductions you’re eligible for. Visit them online to learn more or call (512) 392-6102. 
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