Ensure a Smoother Tax Return Filing by Avoiding Common Mistakes
Tax season can be a stressful time, filled with scrambling for documents and navigating complex forms. But fear not! By avoiding some typical oversights, you can ensure a smoother filing experience and save yourself some money. The following brief gives insight into the top tax blunders to steer clear of: Mistake #1: Missing Out on Deductions and Credits: The tax code offers a variety of deductions and credits that can substantially reduce your tax bill. These can include: ● Standard Deduction: Most taxpayers qualify for the standard deduction, a set dollar amount subtracted from your taxable income. ● Itemized Deductions: If your itemized deductions (like mortgage interest charitable contributions) exceed the standard deduction, you can claim them instead in your individual income tax return . ● Tax Credits: Credits directly reduce your tax liability, dollar for dollar. Common instances include the Earned Income Tax Credit (EITC) and child tax credits. Solution: