Ten Common Income Tax Snafus

Ten Common Income Tax Snafus

1. Filing Late
   “I forgot” isn’t a valid excuse, unfortunately.
2. Not Filling At All!
   This is called tax invasion. It leads to stiff financial penalties and maybe even jail time.
3. Tax Returns Missing a Social Security Number
   A missing or incorrect social security number is the most common IRS tax return error.
4. Math Errors (2+2 = 5)
   While the IRS will check your return for math errors, check it yourself to avoid a hassle.
5. Failing to Keep Copies of Your Old Returns
   Keep copies of your old returns just in case. TIP: Print them out.
6. 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.
7. 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
8. Losing Receipts
   The IRS will NOT accept credit card statements in lieu of an original receipt -Keep your receipts somewhere safe.
9. 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.
10. 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