Five Tax-Filing Mistakes And How To Avoid Them

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I hope you had a wonderful weekend! How about that Superbowl?

LRPC’s Monday Morning Minute for this week, “Five Tax-Filing Mistakes And How To Avoid Them” (presented below) comes to you courtesy of Schwab. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share enlightening, useful information with you each week. This is a short piece I believe everyone can read in less than 60 seconds.

It’s time to start thinking about filing your taxes. If you are an early filer — which is smart since early filing reduces the likelihood of becoming a victim of tax filing fraud — or someone who files at the last minute, you will find these tax-filing tips helpful.

Have a wonderful week!

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Five Tax-Filing Mistakes And How To Avoid Them

From Charles Schwab & Co., Inc.

When the IRS is reviewing your tax return, it doesn’t care whether a filing mistake is intentional or inadvertent. Any error can trigger a notice, says Rande Spiegelman, vice president of financial planning at the Schwab Center for Financial Research.

While a mistake won’t necessarily lead to an audit, you want to avoid as many red flags as possible — particularly if you’re a high-income taxpayer since they tend to be audited more frequently.

Understating income and overstating deductions are two potential problem areas for filers, Rande warns. But those aren’t the only places where returns can go off the rails. Here are five frequent mistakes people make, and ways to prevent them. [Read more…]