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Tax season is upon us and, if you’re like most people, thoughts of paperwork and filing have likely already started to creep into your mind. Unfortunately, during this process, many people end up making mistakes that cost them down the line. However, the experts at Bergamo Tax & Financial Services in Watertown, CT, want to help you avoid this outcome. Below, they share some of the most common tax preparation mistakes to avoid.

5 Tax Preparation Errors You Don’t Want to Make

1. Not Making Estimated Tax Payments

Every self-employed individual is required to withhold taxes from their wages. This includes individuals working as contractors part-time. Ideally, you would send the IRS quarterly estimated payments throughout the year and pay off any of the remaining balance when you file your taxes. If you don’t make payments, the final tax bill at the end of the year could be astronomically high. If you work for an employer, don’t worry—their payroll department automatically deducts a portion of your wages for taxes.

2. Not Reporting Additional Income

These days, many people have second or third jobs to increase their incomes. However, if you’re paid in cash or online, it may be tempting to not report the income. However, if the IRS audits you, they’ll find all that extra money and expect you to pay taxes—plus any assessed fines for late payments on the income earned. Save yourself the headache and report them each year.

3. Entering Personal Information Incorrectly

Tax PreparationThe government relies on you to enter your information accurately when filing taxes. If you enter the wrong Social Security number, or you misspell your married name on a form, it can delay your tax refund by at least a few weeks. To avoid this, review all the information on every form you submit.

4. Taking Too Many Deductions

While audits aren’t bad, they do take time and can interrupt the speed with which you’re given a tax refund. Avoid taking too many deductions unless you’re certain you qualify for them. Also, keep all the proper supporting documentation to provide the IRS with the justification they need to allow your deductions.  

5. Missing the Tax Deadline

The IRS clearly states that all taxes should be filed or granted an extension by April 15 or the following Monday, should the 15th fall on the weekend. Missing the deadline could lead to fines and late fees, increasing the amount you owe to the IRS. To avoid this issue, work with an accountant to start tax preparation ahead of time. 

Let the team at Bergamo Tax & Financial Services help you avoid these tax preparation mistakes. As the most trusted CPA firm in Watertown, CT, they’ll ensure you get the most out of your refund. Visit them online for more information on their services, and call (860) 274-1655 to schedule an appointment today.

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