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Tuesday, April 08, 2008

Avoiding common tax-filing mistakes

Today is a tax-season milestone. There's just one week left until your 1040 is due.

Yep, you've put off filing for 14 weeks. While you've been enjoying all this time tax-free, a major problem with delaying filing until the last minute is that when you do finally get around to filling out the paperwork, you might be in such a hurry that you make a costly mistake.

To help you avoid that, here are 10 common tax errors to be on the lookout for:

  • Tax_tip_icon_pencil_point Entering the wrong account in connection with direct deposit of your refund.
  • Claiming the wrong hybrid credit.
  • Not counting all your charitable contributions.
  • Missing out on the PMI deduction.
  • Overlooking  unearned income.
  • Making math miscalculations. 
  • Misentering or forgetting Social Security numbers.
  • Ignoring IRS mailing material.
  • Forgetting signatures.
  • Missing the filing deadline.

Details on each of these errors can be found in this story I wrote for Bankrate.

Some other bloggers also offer their takes on common tax mistakes:

So even though time is short, slow down a bit so that you don't end up making one of these mistakes and costing yourself in the process.

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July 2008

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Tax Calendar

  • tax season 2008

    The first filing deadline has come and gone. But if you got an extension, mark Oct. 15 on your calendar. Until then, stick around. We'll help you finally finish your 1040 and keep an eye on the other tax dates below.

    July 1: You're halfway through the year. Now's the perfect time to make some midyear tax moves that could cut your 2008 IRS bill.

    July 4: Celebrate your independence from tax hassles. Hire a tax professional now to help get your tax life in shape.

    July 10: Does your job include tips? If so and you received $20 in tips in June, use Form 4070 to report them today to your employer.

    July 16: Are your kids at day camp while you work? You might be able to use that expense to claim the child and dependent care credit. dependents on your tax return.

    July 23: If, however, your kids have summer jobs, make sure they understand their tax responsibilities.

    July 24: You can help your youngster get a nest egg head start by helping him or her open a Roth IRA with some of those summer earnings..

    July 31: Speaking of retirement plans, if you have a retirement plan (other than a SEP or SIMPLE IRA) with more than $100,000 file a Form 5500 or Form 5500 EZ by today. Need more time? File an extension and move the deadline to Oct. 15.

    July Small Business Tax Calendar: Key filing, deposit and record keeping dates your company needs to know.

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  • Earned income -- It's just like it sounds: Compensation you receive from work, including wages, salaries, commissions, tips and self-employment endeavors. Learn more...
  • Unearned income -- Money that is not gained by work or delivery of a service or product. It's most well-known source is from investments. Learn more...
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