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Don't Mess With Taxes

Taxes. Sure you hate 'em, but you're stuck with 'em. Either that, or you're stuck in a federal jail cell. We'll make your tax tasks less, well, taxing, and help cure your personal finance ills with regular dosesof money news, notices, tips, commentary, insight and humor, courtesy of Texas journalist Kay Bell.

A Dozen Tax Mistakes Not To Make

Posted on 04/09/2007 09:16 AM | Link | Post Comment

There's nothing like taxes to showcase our fallibility. Sometimes we make big mistakes, like miscalculating how much tax we owe. On rare occasions, the IRS sends us money we didn't properly claim. I've been on both sides of this tax equation, and while getting is definitely better than giving, the best move is to get it right the first time.

Other times the mistakes seem small, like forgetting to come back and plug in your kids' Social Security numbers. But without those, the IRS won't give you any child-related tax breaks you might be trying to claim.

This year, trying to send in a perfect 1040 is harder than ever, since several tax breaks were approved too late to be included in the forms or instructions (you remember the December extenders, right?).

So to help you maneuver around all these potential filing pitfalls, take a look at this quick list of common errors:

1. Ignoring the federal phone tax refund
2. Forgetting about those aforementioned extenders (sales tax, tuition/fees and educators' out-of-pocket costs)
3. Messing up your direct deposit account info
4. Claiming the wrong hybrid credit amount
5. Improperly valuing charitable donations
6. Forgetting that the kiddie tax has grown up
7. Overlooking interest income
8. Making math mistakes
9. Leaving off Social Security numbers
10. Ignoring IRS-provided paperwork
11. Forgetting to sign your 1040
12. Missing the deadline to file or request an extension

You can get more details on each of these errors by checking out this story.

And that's just a dozen errors. Other lists of potential problems can be found at:

Y'all be careful out there!

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