Ten Common Income Tax Snafus
- Filing Late
“I forgot” isn’t a valid excuse, unfortunately.
- Not Filling At All!
This is called tax invasion. It leads to stiff financial penalties and maybe even jail time.
- Tax Returns Missing a Social Security Number
A missing or incorrect social security number is the most common IRS tax return error.
- Math Errors (2+2 = 5)
While the IRS will check your return for math errors, check it yourself to avoid a hassle.
- Failing to Keep Copies of Your Old Returns
Keep copies of your old returns just in case. TIP: Print them out.
- Forgotten to sign and Date
More than 1 MILLION people forgot to sign their returns every year. It’s the most common tax return mistake people make.
- Claiming Bogus Dependents (like Pets)
The maximum penalty is steep – 3 years in prison and $250k in fines – yet hundreds of people claim pets as dependents every year
- Losing Receipts
The IRS will NOT accept credit card statements in lieu of an original receipt -Keep your receipts somewhere safe.
- Failing to Report Domestic Workers
If you’ve paid more than $1800 to a domestic worker in 2012, you must pay Social Security and Medicare employer tax. According to the New York Times, about 95% of people don’t report this income properly.
- Remember, Check The Tax Preparer’s Work
Many assume that their tax preparer is responsible for mistakes.
However, in the eyes of the IRS, YOU are responsible