Common tax mistakes and how to avoid them

Mistakes to watch for

• Missing a filing or payment deadline

  How to avoid it: Mark the federal filing date and each quarterly estimated payment date on your calendar. If you need more time, file an extension, and remember an extension to file is not an extension to pay.

• Choosing the wrong filing status

  How to avoid it: Your filing status sets your rates and deductions. Review it each year, because marriage, a new child or a change in who you support can change the best choice.

• Typos, wrong numbers and missing signatures

  How to avoid it: Double-check names, Social Security numbers and bank details, and review the return before it is sent. Careful preparation and e-filing remove most simple errors.

• Leaving out income

  How to avoid it: Gather every W-2, 1099 and interest statement before you start. The IRS already receives copies of these forms, so a missing one can trigger a notice.

• Missing deductions and credits

  How to avoid it: Keep receipts and records through the year, and ask about credits you may qualify for. Many people overpay simply because they never claimed what they were owed.

• Mixing personal and business spending

  How to avoid it: Use a separate account for your business and keep your books current. Clean records make deductions easy to support and tax time much calmer.

• Ignoring an IRS letter

  How to avoid it: Open every notice right away and note the response date. Most problems are easier and cheaper to fix early, so reach out to us before the deadline passes.

• Skipping estimated tax payments

  How to avoid it: If you are self-employed or have income without withholding, pay quarterly. Setting aside a share of each payment avoids a large bill and penalties in April.