Tax season is upon us, and while it can feel like a yearly hurdle, a little planning can go a long way in avoiding costly mistakes. Here at FSL Tax and Accounting Services, we’ve seen our fair share of common tax mistakes to avoid and want to help you steer clear. Let’s take a look at a few key areas to watch out for in 2024:

Missed Credits and Deductions

• The Earned Income Tax Credit (EITC): This valuable credit can significantly reduce your tax bill, but many eligible taxpayers need to pay more attention. Ensure you understand the income limits and filing requirements to claim it if you qualify.
• The Child Tax Credit: This credit saw changes in 2024, so be sure you’re aware of the updated amounts and eligibility.
• Home Office Deduction: Working from home remains common, but the home office deduction rules can be tricky. Ensure you meet the requirements for claiming this deduction to avoid IRS scrutiny.

Miscalculations and Reporting Errors

• Simple Math Errors: Double-check your calculations! Typos and errors are easy to make, but they can delay your refund or, worse, trigger an audit.
• Missing Income: Report all your income, including W-2s, 1099s, and any side hustle earnings. Unreported income can lead to penalties and back taxes.
• Incorrect Filing Status: Choosing the wrong filing status can significantly impact your tax liability. Review the IRS guidelines or consult a tax professional if you need more clarification.

Claiming Too Much

• Business Expenses: While claiming legitimate business expenses can save you money, the IRS is looking for excessive deductions. Keep detailed records to justify your business expense claims.
• Charitable Donations: Maximize your charitable giving deductions, but ensure you have receipts for all qualified donations.

Remember: Don’t be afraid to seek professional help! Tax laws can be complex, and a qualified tax advisor can help you navigate the system, ensure you claim all the deductions and credits you deserve, and, ultimately, save you money.

Experts You Can Trust

Individual or Business tax preparation can be complicated with today’s complex tax code and may leave you with more questions than answers. Even if you are filing a simple return, the rules may change yearly, and it is easy to overlook these changes and submit an incorrect return. By doing your taxes yourself, you may also overlook deductions and credits. 

FSL Tax and Accounting is here to help! Contact us today to schedule a consultation and discuss your tax situation. We can guide you through the preparation and filing process and ensure a smooth tax season. Call 678-702-7218 for a free consultation, or complete the online form. 

Disclaimer: This blog post is for general informational purposes only and is not personalized tax advice. Please consult with a tax professional for guidance specific to your situation.