Tax Return Mistakes You’re Making

Tax Return Mistakes You’re Making

Tax Return Mistakes You’re Making

Tax return mistakes are often the hidden culprits behind delayed and flawed filings. Eager for a swift and flawless tax return? Then it’s crucial to address these tax return mistakes head-on. The devil, as they say, is in the details—those easily overlooked elements that can turn your filing journey into a hurdle race. Let’s silence the noise and focus sharply on avoiding these pitfalls, ensuring what really matters:

1. The Non-Negotiables: Forms W-2 and 1099. Think of last year’s return as your blueprint. Every W-2 and 1099 from your employment or investments should be on your radar. Overlook one, and you’re inviting the IRS to your doorstep, thanks to their mismatch program. These forms are due in your mailbox by January 31. Missing any? Time to nudge the issuer pronto.

2. Dependent Details: A Must for New Additions. Welcomed a new family member in 2023? You’ll need their full name, Social Security number, and birth date. Sharing custody? Get on the same page about who claims them to avoid filing hiccups.

3. Cost Basis Clarity: Your Ticket to Accurate Capital Gains. Sold assets this year? Your capital gains tax hinges on the cost basis. Dive into your investment statements; the details you need might be hiding in the fine print.

4. Schedule K-1s: Don’t Overlook Your Share of the Pie. If you’re in the partnership or S-corporation game, keep an eye out for your K-1 form. It spells out your share of the earnings (or losses). Focus on box 17 (S corporations) and box 20 (partnerships) for insights on the Qualified Business Income Deduction.

5. Digital Asset Dealings: A New Frontier. Trading cryptocurrency or digital assets? You’ll need a crystal-clear record of each transaction’s cost basis and sale price.

6. Mysterious Forms? Seek Clarity. Received a tax document that’s Greek to you? Ignoring it isn’t an option. Whether it’s a retirement distribution or another curveball, you’ll need to provide an explanation to steer clear of filing snags.

7. The Final Check: Signatures. A tax return without your John Hancock (and your spouse’s, if applicable) is going nowhere. Seal the deal with your signatures to get your return on the fast track to filing.

Armed with this knowledge, your tax filing should glide smoothly toward completion. Remember, the devil’s in the details — but now, you’ve got a spotlight on what to watch for.

Get ahead with expert tax guidance! Call 832-303-3995 or book your appointment today.