With the tax deadline just around the corner, the pressure is on for people who still haven’t filed their taxes. Certified Financial Planner, Tony Drake talks with Milwaukee’s WTMJ-4 about some common tax mistakes to help procrastinators.

  • Math Miscalculations – The most common error on tax returns is bad math! Math mistakes can reduce your refund or result in you owing more than you do. Using a tax software program will help you reduce math errors as the built-in calculators do the work for you!
  • Forgetting Signatures – Make sure to sign and date your return. The IRS won’t process it if it’s missing your signature. And that goes for e-filed returns too. Taxpayers filing electronically must sign the return electronically using a personal identification number or PIN.
  • Calculating Charity Deductions – All types of donations from large to small could be valuable as tax deductions. Make sure to follow the donation tax rules. You must give to a qualified organization – one that has tax-exempt status with the IRS.
  • Direct Deposit Dangers – Taxpayers can have a refund directly deposited into a bank account. And we actually recommend this. This is a great way to save your refund money and not spend it all right away. It also can cut down on theft, having your refund check stolen from your mailbox.
  • No Health Insurance – The Affordable Care Act requires that you have health insurance or you must pay a penalty. The penalty for not having insurance is $695 per adult and $347.50 per child, up to $2,085 for a family, or 2.5% of your household income — so it is important to sign up during the open enrollment period.

 

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Drake & Associates does not offer tax advice. Please consult the appropriate professional regarding your individual circumstance.