Tax season for 2021 is officially over, but you may already be thinking about taxes for next year and how to handle them. You might be thinking about how you can make the most of your deductions and what documentation you need to be gathering up now. Dealing with taxes can be confusing, to say the least, but there are some ways you can make it a little easier.<\/p>\n\n\n\n
There are several common tax mistakes people tend to make that make things even more of a hassle. Read on to discover these common pitfalls and how you can avoid them and make your tax season go smoother next year.<\/p>\n\n\n\n
When the new year rolls over, you\u2019ll likely have all your tax documents in hand by the end of January. But many of us may wait for that April 15 deadline to roll around before we start filing our taxes. The last two years may have been even worse, as those deadlines were pushed back in light of the COVID-19 pandemic.<\/p>\n\n\n\n
However, waiting until the last minute to file your taxes is one of the biggest mistakes you can make, especially if you\u2019ll get a refund. Every day you wait to file is another day the government gets to use your money interest-free. And if you\u2019re expecting a check in the mail, why delay that when you could file early and get paid faster?<\/p>\n\n\n\n
Tax forms can be confusing, to say the least, and there\u2019s a reason we pay professionals to help us prepare our taxes. But if you\u2019re trying to save a little money this year, you may have opted to prepare your taxes yourself. This is certainly a doable thing, but it does require that you pay close attention to where you\u2019re putting all your information.<\/p>\n\n\n\n
Read each line of your tax form carefully and make sure you understand what piece of information needs to go in that slot. Many of these lines have similar names, so google any names you may be confused about. If you\u2019re leaving something blank, triple-check to make sure that that box doesn\u2019t apply to you before you submit your tax form.<\/p>\n\n\n\n
Watching that \u201camount owed\u201d number tick up while you\u2019re preparing your tax return can sting. No one wants to be stuck with a bill for thousands of dollars at the beginning of the year. But it\u2019s important that you report all of your income accurately when you\u2019re filing your taxes.<\/p>\n\n\n\n
If you work a standard salary job, you\u2019ll likely have an easy time reporting all your income. But if you have a side hustle or work a freelance gig, you need to make sure to carefully track your income<\/a> throughout the year. Make sure you include all your different sources of billing and payment, and keep your records in case you get audited in the future.<\/p>\n\n\n