Every American has a responsibility to file their taxes on time. A lot of Americans look forward to receiving their tax return, but get frustrated with the calculations and paperwork involved in submitting their earnings and deductions.
1. Missing errors from previous years
Think you might have missed a tax credit or refund that you could have claimed in the past? It’s worth giving it a second look. You can go back as far as ten years and file an adjustment. It’s easy to do and you can even do it online, from your computer.
2. Misunderstanding capital losses
A lot of people don’t fully understand how investments are taxed, and it’s helpful to do some research to learn more because there are a lot of savings to be had and a lot mistakes that can easily be made.
3. Not claiming moving expenses
Many Americans aren’t aware of that they can claim moving expenses under certain circumstances. If you’re eligible, moving expenses could be your most lucrative deduction of the year and you don’t want to miss out.
- Expenses that qualify include real estate commissions that can be very high.
- Don’t forget to keep your receipts because moving expenses are subject to audits.
- To qualify, you have to move at least 40 kilometres closer to a new work or business location.
4. Losing receipts
Saving your receipts for tax time can be a big organizational undertaking, but it’s one of the most important things you can do to save yourself money and avoid making a mistake on your tax return.bDo you have system for keeping track of your receipts? If not, there are simple ways you can start managing them better, like carrying a separate wallet or zip-up for receipts.
How Can I Avoid These Mistakes?
One way to avoid these mistakes is to use one of the online services that are now available to help you with your tax return process. H&R Block provides free, fast and easy tax filing.
One of the best things about H&R Block is they offer an accuracy review at the end with makes sure that you can get the maximum return in the shortest time. Other benefits include free expert advice and step-by-step guidance. To find out more about how H&R Block could help you then click here…
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