Tax experts share some of the biggest mistakes you’re able to make and how to avoid them.
Tax season has rolled around once again, and so has the inevitable dread that comes with it.
Steal their secrets below as you work on yours:
1.
They would never file without being sure all documents are in.
For one, this means reporting all of your income, no matter how small.
Documentation regards more than just income, too.
To figure out what documents you specifically need to file,check outanindividualized tax document checklist.
For example, you may have extra documentation if you have dependents, student loans, and more.
They wouldnt rush to file instead of filing for an extension.
An extension is just a tool to help relieve stress and ensure taxes are accurate, she said.
(You canfile for an extension on the IRS website.)
They wouldnt file without understanding the rules behind tax deductions.
Dont write off items without doing your due diligence.
They wouldnt deduct a business expense for something that isnt 100% part of their business.
Rothbauer also stressed that its best to understand what counts (and doesnt count) as a tax deduction.
The rules around that are fairly strict, too.
But all is not lost.
I would familiarize myself with what is deductive instead, she said.
They would not claim a loss without top-notch bookkeeping and receipts.
That way, if you are audited, he said, it will hopefully end in adouble-checkno-change audit result.
They wouldnt ignore the S Corporation tax election if theyre self-employed.
For those in thecreator economy, this one is especially important to note.
Basically, it can help with self-employment taxes.
For many, it can potentially be a difference of thousands of dollars in taxes each year.
This tax status isnt viable or the best option for everyone whos self-employed, however.
Finally, dont forget to double-check your work before submitting.
A lot of people worry about filing taxes but there are a bunch of resources (and people!)
out there to help you tackle the process successfully.
Reach out to a tax pro oruse online toolsto help assist you in the process.This post originally appeared onHuffPost.
