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IRS: Three things that could lose you money with taxes

Tax season is here, and as Americans continue to lead busier, more normal, lives, they should be diligent about filing their taxes with the IRS.

This is because rushing your taxes leaves room for mistakes to happen.

By taking the time to make sure they’re done correctly, you’ll be sure to get all of the money or tax breaks you’re entitled to.

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Here are three things you can do to make sure your tax get done on time and correctly

Don’t wait until it’s too late to file with the IRS

By filing late, you could end up facing some major penalties.

The major penalty people face is equal to 5% of the taxes you owe for every month you file late.

Failing to pay will give you a penalty of .5% of the taxes you owe.

It’s important to put your taxes at the top of your list of things to do to help avoid these preventable issues.

Rushing your taxes can cause mistakes to happen and delay your refund or processing.

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Don’t pick the incorrect filing status

There are different choices for filing status.

This includes

  • Single
  • Head of household
  • Married filing jointly
  • Widower

If you choose the incorrect status, you could bump yourself into a higher tax bracket and owe more.

If you need help, it may be worth hiring a tax preparer.

You may also ask for an extension if you notice you’re running out of time.

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Choosing the IRS’s options wrong for itemizing or standard deduction

Be sure you take the time to figure out what the best standard deduction for you will be.

It would be the one that saves you the most money.

This depends on how many expenses you have that can be deducted.

TurboTax and other software can give you a good idea of what you can do.

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