Have you recently decided to file your own taxes in an attempt to save money? If so, you could make some of these mistakes that end up costing you money.
Missing Out On Tax Credits
Sometimes the trick to getting a tax refund is knowing what credits to look for. If you are not familiar with the changes made to the tax code each year, you could be missing out on new credits that you would normally qualify for. These are not always easy to research on your own due to all of the possibilities that are unique to each individual's taxes.
Not Using The Correct Filing Status
There are so many filing statuses to pick from, which each have their own tax benefits. Even if you are married, you have the option of filing jointly or separately. This can get complicated for couples that are currently separated and seeking a divorce, where they do not want to work with their spouse to get the tax benefits they are eligible for during their final year of being married.
Not Having All Your Forms
You may be looking to get your taxes done as soon as possible, but doing so could be a mistake. It is a good idea to wait until all of your 1099s, W2, and other tax documents come in. While companies are required to get the documents out by the end of January, problems with the mail can cause them to be delayed and received after you file your taxes. If a form comes in afterward that you forgot about, you will need to file additional paperwork to amend your taxes.
Not Double Checking Information
There are a lot of numbers that need to be entered on your tax forms in order to file them, which means mistakes can be made when transferring them to the paperwork. Make sure that you double check everything to ensure that there are no mistakes with any of the numbers that you enter.
Not Claiming Children
If you are the primary caretaker for a parent, even if you are not the child's actual parent, you are allowed to claim them on your taxes. You could use the head of household filing status and receive the child tax credit that you deserve.
These are just a few mistakes that can be made when filing your taxes on your own. Work with a tax preparation service to make sure it is done correctly.
