Many CPA in Kissimmee ask their clients this question, are you about to start your taxes or are you already half way through? Whichever of the two it is, heed with caution and care. According to the IRS, there were over 2.7 million errors that were made by nearly 22 million people on their tax return forms of last year. The year before, the recorded errors were around 6.6 million. The IRS resolves that tax programs and hiring a skilled CPA Kissimmee are probably the prime reasons that led to a decrease in errors.
Even though you should avail the services of a reputed CPA Kissimmee and use a extremely good tax software, mistakes can still occur. Double check your form and you can avoid the most common tax blunders that are given below.
Making simple errors
The topmost blunders are very simple and you cannot even anticipate that you can actually make this mistake. According to the people at IRS, errors like mentioning the wrong Social Security Number, entering information in a wrong section or field, adding and subtracting incorrectly and forgetting to sign the form are very common errors. There are some people who even forget to put postage on the envelope.
So how do avoid all of the above? Stop being panicky and maintain focus until you are done with taxes.
Improperly claiming/not claiming dependants
A dependent is any individual who requires your financial support such as your spouse or children. And can make claims on your taxes for exemptions and credits. As simple as it may sound, things can get confusing in a big or joint family. Typically, if you provide 50% or more of the overall financial support an individual requires, he can be our dependent. However, if your household has a pureed concoction, you should visit the IRS website and properly determine who your dependent is by answering a set of questions.
One more point to note here; anyone who is not your family member can also be your dependant such as girlfriend if you have had a relationship greater than a year and she does not earn more than $3,900. Many a times, people forget to claim such an individual as dependent and so may end up paying higher taxes.
Not filing a refund
This mistake is more notable among people who have lower income levels. They forget to file a tax return and so miss out on earned income credit. This will provide you with a refund, if you pay more taxes than you owe.
Keep in mind that not everyone is eligible for this. Go through the polices on the IRS website or ask your CPA Kissimmee for more details.
Stating incorrect figures related to the retirement accounts
There are many tax payers who do not report correct values of taxable amounts for their IRA distributions and retirement plans. The procedure of calculating this amount can get complicated when there are nondeductible IRAs to consider. Take help from your CPA Kissimmee in this regard.
If you need more information about our Kissimmee accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.