Common Mistakes People Make When Preparing Their Tax Return
Whether you are an individual taxpayer or a business entity, the process of filing taxes can be exhausting. To simplify the complex task, assistance from a reputed tax specialist or accounting firm might be the best option. They will represent you in every tax-related matter and ensure you get the most out of your tax refund.
Attempting to prepare tax returns on your own may not have the same accuracy as a professional tax advisor and may result in a delay due to errors. When filing income tax returns, in particular, failing to pay careful attention can cost you a significant amount.
To prevent similar situations, escape the hassle of faulty tax returns, and risk the ire of the Internal Revenue Service (IRS), Terry Barker CPA, has put together a list of common mistakes you should avoid when preparing your tax returns.
1. Filing taxes too quickly. This is a common tax filing mistake. The correct method is always to wait and receive all of your tax information and then file it. As a Certified Public Accountant, I work closely with clients to ensure they have all the information required to submit a complete and accurate return.
2. Not keeping a record of documents. Clients do not always maintain the best documentation of their income and expenses. However, an accurate record will reduce tax obligations and even improve your business. My accounting firm streamlines a system that clients can use to keep up with record-keeping.
3. Failing to hire a tax preparer. Clients often try to prepare their tax returns to save the cost of tax preparation. This is a big mistake. Taxes are complicated, and most clients need the help or guidance in filing returns. Using the services of a professional tax preparer will save you a great deal of tax stress.
4. Lack of knowledge. Tax rules are complicated and hard to interpret. Clients do not always understand tax laws as they are ever changing. They also lack knowledge about available deductions and credits. As a trained tax specialist, I am an expert in this area and continually update myself with the changing tax laws.
5. Omitting a dependent. Another topic clients often fail to comprehend is dependency deductions. Sometimes, they omit a dependent or take too many exemptions on their returns.
As a professional tax preparer, I have a vast knowledge about dependency deductions and can help you avoid making mistakes like these.
For all your tax and accounting needs in Bellaire, TX, reach out to Terry Barker, CPA. With over twenty-nine years of experience in tax preparation, business consulting, and accounting, I cater to the specific goal of every client. I adhere to the values of accuracy, integrity, and efficiency, offer free consultations for new clients and only work with clients who I am sure I can genuinely help.