Filing your taxes is an important responsibility that needs to be done if you have earned income throughout the year. When filing your taxes, there are mistakes that can be made easily if you aren't careful. Read on for some of these mistakes so you don't end up making them and costing yourself some money.
Throwing Away Important Receipts
Some receipts are necessary when filing your taxes, especially if you are self-employed, or are claiming things such as energy efficient appliances that you purchased throughout the year. Keep all of these receipts so you can claim these things on your taxes and have proof if need be later down the road.
Forgetting About Deductions
Those small deductions can all add up. Things such as renter's insurance, mortgage interest paid on your home, taxes paid on your license plates, and daycare costs can all be deducted. These minor deductions may not seem like a lot of money, but combining them all can lead to a good sized deduction and reduce your taxes. Keep track of all of these deductions.
Not Taking Out Enough Taxes
If you aren't taking out enough in taxes, it may cost you on your tax bill. Take a look at your employment tax forms you filled out and look at what you claimed. Claiming "0" will take out more taxes from your paycheck. Claiming more than "0" will leave you more on your paycheck, but will take out less in taxes. You need to find the balance that works best for you, giving you enough of your income as you need it throughout the year, but not leaving you with the large tax bill at filing time. You can talk to a tax professional about what to claim so you don't end up costing yourself more money later.
Attempting To File Yourself
If you are trying to file your taxes and are filing with anything other than an EZ form, you may want to use a professional tax service. A tax service will know and understand the tax laws that you may not necessary understand. You could end up costing yourself some money, or could lose money. Either way, you're going to be losing out. Hire a professional instead to do the hard work for you and to ensure your taxes are filed properly.
Don't make these mistakes when filing your taxes. Hire a tax service such as Balkcom Pearsall & Parrish CPA's PA and get your taxes filed properly.