Here are some money-saving strategies to consider when planning your taxes.
Avoiding the 10 most common tax mistakes
1. Failing to keep good records. Use tax preparation software and basic file folders for file statements.
2. Not withholding the right amount of taxes.
3. Getting help when it’s too late. A tax pro can help you no matter what your circumstances are.
4. Not contributing to a tax-deferred investment program.
5. Not replacing personal debt with mortgage debt to the extent possible. You may want to consider a home equity loan to pay off your personal debt.
6. Forgetting to check last year’s income tax return for important items, such as carrying forward any losses.
7. Not taking a profit because you’re afraid to have a capital gain.
8. Choosing the wrong filing status.
9. Anticipating a large refund. If too much in taxes is withheld from your paycheck, the IRS is getting an interest-free loan.
10. Forgetting to attach the right copy to your tax returns.
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