Tax season has come and gone, but both you and your clients might have found out that you made some (big) errors in your filing this year. There is so much we can learn from hearing about other people’s mistakes. Sometimes mistakes lead to battles with the IRS.
In yesterday’s post on the Equifax Finance Blog are stories of two women whose tax filing mistakes led them to into big tax cases. The first was audited for charitable tax deductions. And the second was a woman whose ex-spouse continued using her Social Security Number on a business they had opened together while married. Both of these women dealt with common tax mistakes that can easily be prevented.
Today’s post again deals with how to avoid tax mistakes, focusing in on 4 common mistakes:
1. First time home buyer credit errors
2. Drawing money from a 401 (k) or retirement plan
3. Getting your spouse’s retirement funds in divorce
4. Cancellation of debt.
Tax expert Eva Rosenberg offers her advice on how to handle these situations correctly to avoid penalties or paying more to the IRS than you actually should.
Making mistakes when filing taxes is easy to do, but learning from other people’s mistakes and keeping yourself informed are great ways to avoid errors.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.
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