5 Tax Mistakes Draining Thousands

Tax Deadline Approaching: Avoid These Common Mistakes to Maximize Your Refund

A new report from GOBankingRates reveals five prevalent errors Americans make when filing taxes, costing them thousands in refunds or penalties annually. These blunders range from neglecting deductions to misreporting income.

Experts like CPA Jennifer Kohlbacher advise treating taxes as an ongoing process rather than a yearly chore. Overlooking expenses such as charitable donations, medical bills, or state tax interest can significantly increase your tax bill.

Self-employed individuals often forget to make quarterly estimated payments, accruing interest. Life events like marriage or having children can also disrupt withholding, reducing take-home pay or refunds.

Investment income is another area where people often stumble, miscalculating stock options or capital gains basis, leading to overpaid taxes. Poor record-keeping or mathematical errors can attract IRS scrutiny.

To avoid these pitfalls, start organizing your tax documents now. If necessary, request an extension, double-check your calculations, and maintain a record of expenses throughout the year to boost your refund next time.

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