Tax Carnival #15: Avoiding foolish tax mistakes

Welcome to the April 2 edition of Carnival of Taxes. We're a day removed from April Fools' Day, but we're going to keep a bit of the theme. This 15th Carnival of Taxes aims to keep you from making foolish tax mistakes.

Let's start with a post that sounds like a belated April 1 hoax, but businessman Chris at Martial Development swears it's true: The IRS Paid Me $500 to Create This Blog.

Speaking of business, Kirk at the eponymous Kirk Walsh blog takes a look at the long taxation chain and its various links in Who Really Pays Business Taxes?

If you're a smaller businesses, specifically, self-employed, Steve at DebtBlog presents your retirement savings options.

And Nickel connects the self-employed and working for wages worlds with Minimizing Our Taxes with a SEP-IRA, 403(b) and 457(b) posted at fivecentnickel.

Of course, any time you make tax moves, you have to be careful. L.L. at Tax Information offers some help here with Costly Tax Mistakes and What You Can Do about Them.

Tax software often helps reduce filing mistakes. And FIRE Getters offers a discount coupon for TaxCut at FIRE Finance.

One mistake made by many early season filers was overlooking the phone tax credit. To make sure that doesn't happen to you, Super Saver presents Telephone Excise Tax Credit - Claim It or Lose It, posted at My Wealth Builder.

Other tax breaks come from more complicated circumstances. First we have Allison, who looks at the tax benefits of expanding your family at Queercents.

Guardian tells us about an often overlooked tax deduction, the uninsured casualty loss at Insurance On Your Terms.

Some folks intentionally ignore deductions because they're afraid the breaks will trigger an audit. You don't have go to that extreme. Matthew tells us 10 Great Ways to Avoid an IRS Audit, posted at Getting Green.

Then there's the fear of turning your taxes over to someone else, even someone to whom you're very close. That's the situation S at The 100 by 30 Project found herself in, admitting that "it's hard to give control over my finances to other people."

I know just how she feels, having been the keeper of taxes in our house for the whole time the hubby and I have been together. He offered to take the task off my hands this year, but I convinced him it wasn't a problem. It's not that I don't trust him, but there are a lot of tax breaks out there to keep track of.

Some of them are related to homeownership, but Phil B. at Phil for Humanity asks, to rent or own? "A lot of people still cling to the common misconception that the tax deduction on the interest of a mortgage completely offsets the costs of the mortgage," says Phil.

Another look at houses and taxes comes from Living Almost Large at the blog of the same name, who explores whether it's wise to pay off a mortgage early and lose the tax break.

Some folks don't get that option because they lost their home after getting a questionable mortgage loan. That got Eva, aka the TaxMama, ranting thinking here in The Lenders are the Nail that will lose us the Kingdom.

Several other bloggers also tackled tax issues beyond the typical 1040.

David over at The Picket Line says a recent Tax Foundation study about the redistributive effects of government taxation combined with government spending meets the laugh test if you look past the press release to the methodology and data.

Joseanes also examines the limits of tax parameters and the problems they pose in fixing the alternative minimum tax, posted at Money And Investing.

Meanwhile, Anja worries that "in a cashless society, which is predicted for 2012, the IRS will rule supreme." Find out how in Big Brother will be able to watch everything posted at her self-named blog, Anja Merret.

Quang tells us why Rich People Love Taxes at poor Wealth.

And finally, Joe at Roth & Company Tax Update brings up back around to our tax foolishness theme with a walk down memory lane with the Department of Justice as the feds tie up loose ends on three old tax scams. "These are all good Midwestern scams," says Joe, "showing that tax fraud isn't just confined to the financial Gomorrahs on the coasts."

And with that we close out Tax Carnival #15. Thanks to all who contributed and to you for reading.

We'll be back here next Monday with the next edition, so mark April 9 on your calendar. Make sure your tax tip is included by clicking the above button.

Comments

[John Sullins]

The Zone Alarm deal for TaxCut (30% discount) is a major rip-off. It is the 2006 version, not 2007; which they don't tell you until *after* you have downloaded the program.

This is hugely deceptive. STAY AWAY from Zone Alarm!

[FIRE Finance]

Thanks for mentioning our article and hosting the festival.
Cheers,
FIRE Finance

[Anja]

Thanks for your work. Much appreciated.