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What Common Tax Mistakes Are Made When Filing Returns?
Preparing your own tax return can feel like a very bold endeavor. When it comes to filing simple short-form returns, there is less chance of making significant errors. These types of returns are pretty straight forward and require you to provide very little information.
While you should proceed with care and caution, you are likely very capable of filing short-form tax returns on your own.
If you are required to file a 1040 long-form tax return with supporting schedules, your level of exposure increases. You must remember the US tax code is a complicated set of rules and regulations.
Even the smallest mistake on your tax return could result in you creating an expected tax liability you didn’t foresee. Also, the amount of information you might have to process makes you more prone to mistakes.
If the cost of tax preparation by a licensed accountant or tax specialist exceeds your budget, preparing your own taxes might be your best option. If so, understand you are responsible for any errors you make.
While our recommendation is to always discuss your tax situation with a financial professional, we also want to help you by making you aware of some of the common errors people make doing their own tax returns.