Don't Make These 7 Fatal Income Tax Mistakes

Mike Makler

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Here are 7 More Common Tax Mistakes many taxpayers make according to Jeff Schnepper of MSN Money

1 – Bad Math

Math errors in addition and Subtraction are the number 1 Mistake taxpayers make according to the IRS. The IRS will automatically check all returns for common math errors and generate a correction notice if any are found

2 – Forgetting to Report Interest and Dividends

The IRS cross checks your returns often electronically from data it gets from banks and other financial institutions to insure all interest and dividends are reported. Of the 10 Million correction notices the IRS sends out about interest and dividends about ½ of them are wrong or unclear.

3 – Improper Reporting of Investment Gains and Losses.

When mutual funds are sold often the Gains arn losses are incorrectly reported to the IRS

4 – Getting Married

The difference in Taxes 2 single people pay versus a Married couple may make you want to consider pushing that November or December wedding to the following year, perhaps Valentines Day.

5 – Loosing Track of Receipts

Keep all receipts 3 Years if you are using them for tax deductions

6 – Failing to Bunch Deductions

Some Deductions are only allowed after they exceed a fixed amount of your income. As an example medical deductions are only allowed after they exceed 7.5% of your income. A Taxpayer who earns $50,000 a year would only be allowed medical deductions in excess of $3,750. Prepay your health insurance for January in December is one way to bunch this Deduction.

7 – Forgetting to donate

Make a happy of going through your closet in December and donate unwanted clothes and other items prior to December 31st.

About the Author
Mike BigMak Makler Offers Financial Services (Life Insurance, Annuities and Mortgage Protection) in Florissant Missouri which is in North St. Louis County Missouri Just Across the Bridge from St. Charles Missouri and Alton IL

Call Mike at 314 398-5547

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Copyright © 2005-2006 Mike BigMak Makler

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