Many of these tax mistakes are easily avoidable if you use Turbo Tax or H&R Block to prepare your taxes. I’ve personally used H&R Block for 15 years … this year could be my 16th … I’m planning to do my taxes this year with both sets of software, just to see if one works better for me. I’ll be sure to report my findings.
It’s easy to make a lot of these tax mistakes. We’re busy and our lives are taxing enough already (pardon the pun). When tax time rolls around, we can get in a big hurry to get it over with and in our rush, make a few mistakes. Here’s a list you can reference to make sure you don’t delay your refund or wind up paying penalties, interest, or fees.
1. Failing to report forgiven debt as income. Companies that cancel debt report it to the IRS on Form 1099-C and you’ll have to pay taxes on it.
2. Failing to report all sources of income.The lucky break that put a little jingle in your pocket or a new iPad in your mailbox is taxable as income too. Forgotten income trips up a lot of people.