5 Common Tax Filing Mistakes and How to Avoid Them This Season

As tax season approaches, many individuals and small business owners in Rochester, NY, and Greece, NY are scrambling to get their financial documents in order. Whether you're filing as an individual or running a small business, it's easy to make mistakes when dealing with taxes. However, tax errors can result in costly penalties, missed deductions, or delayed refunds.

In this article, we’ll explore five common tax filing mistakes and offer actionable advice on how to avoid them. Whether you’re a first-time filer or a seasoned taxpayer, ensuring your taxes are filed accurately is crucial for your financial well-being.

1. Failing to File on Time

One of the most common tax filing mistakes is failing to meet the IRS deadline. The April 15th deadline is fast approaching, and not filing on time can result in penalties and interest charges. Even if you're unable to pay the full amount owed, it’s crucial to file your return to avoid additional penalties.

How to Avoid It:

• File early: Getting your documents organized and filing as early as possible can help you avoid last-minute stress. Early filing also increases your chances of getting your refund faster.

• File for an extension: If you can't file by April 15th, you can request an extension. Keep in mind that an extension only gives you more time to file; any taxes owed are still due by the original deadline.

• Set reminders: To ensure you don't miss the deadline, set up calendar reminders or use tax software that can alert you about key dates.

At Nacca & Capizzi, we can help you stay on track and file on time. Call us at (585) 225-9290 or visit www.naccacpas.com to schedule a consultation.

2. Incorrectly Reporting Your Income

It’s easy to overlook income from side gigs, freelance work, or rental properties, but misreporting income can lead to serious consequences, including penalties, fines, and potential audits. The IRS receives copies of all your income forms, such as W-2s and 1099s, so underreporting your income can quickly raise red flags.

How to Avoid It:

• Gather all your income documents: Make sure to collect all income-related forms, including W-2s, 1099s, and records of side income. Double-check that all forms match your financial records.

• Report all sources of income: Even if you didn’t receive a tax form for some income, you are still required to report it. This includes cash payments, freelance work, or bartering agreements.

• Use accounting software: If you're self-employed or have multiple income streams, QuickBooks or other accounting software can help track and categorize your income automatically.

Working with Nacca & Capizzi ensures that all income is accurately reported, and we can help you avoid potential pitfalls. Contact us for assistance at (585) 225-9290 or visit www.naccacpas.com.

3. Missing Out on Valuable Tax Deductions

Many taxpayers miss out on valuable tax deductions because they’re either unaware of them or don’t keep track of their eligible expenses throughout the year. Common deductions include those for student loan interest, medical expenses, business expenses, and charitable donations.

How to Avoid It:

• Maximize your deductions: Take advantage of deductions for things like mortgage interest, childcare, education expenses, and business costs. If you’re a small business owner, don’t forget to track expenses like office supplies, travel, and home office deductions.

• Consult a professional: A CPA can help you uncover deductions you may have missed and guide you on how to organize your records.

• Use tax software: Many tax software programs will automatically highlight deductions based on your financial situation, making it easier to claim everything you qualify for.

Don’t miss out on potential savings! Reach out to Nacca & Capizzi for expert guidance on tax deductions. Visit us at www.naccacpas.com to schedule your consultation.

4. Incorrectly Claiming Dependents

One common mistake is incorrectly claiming dependents. Whether it’s a child, relative, or other dependent, making an error can lead to a delay in your refund or, worse, a tax audit. The IRS has strict rules on who qualifies as a dependent, and it’s crucial to understand these before filing.

How to Avoid It:

• Know the IRS guidelines: The IRS has clear rules for claiming dependents. Generally, you can claim children who live with you and meet age and support requirements, but the same applies to other relatives, such as elderly parents or disabled family members.

• Check custody agreements: If you share custody of children with another parent, make sure to understand who can claim the child for tax purposes.

• Consult a professional: If you’re unsure whether someone qualifies as a dependent, it’s best to consult a CPA like Nacca & Capizzi for clarity.

Claiming your dependents correctly is essential for filing accurately. Let us assist you with this process—contact us today at (585) 225-9290 or visit www.naccacpas.com.

5. Filing the Wrong Tax Form

Choosing the wrong tax form is another easy mistake. Form 1040 is the most common form for individuals, but there are other forms for specific situations, such as Schedule C for self-employed individuals or Schedule A for itemizing deductions.

How to Avoid It:

• Use the correct form: The right form depends on your tax situation. If you’re self-employed or own a business, Form 1040 with Schedule C may be required. If you itemize deductions, you’ll need Schedule A.

• Consult with a professional: Nacca & Capizzi can help you determine which form you need to file based on your unique tax situation.

• Use tax software: Tax software usually asks you a series of questions to determine which forms apply to your situation.

Choosing the right form is critical to avoid delays and penalties. Nacca & Capizzi can guide you through the process. Schedule a consultation with us at www.naccacpas.com or call (585) 225-9290.

---

Get Expert Help from Nacca & Capizzi Tax season doesn’t have to be stressful. Avoid these common mistakes and file your taxes with confidence by partnering with Nacca & Capizzi. Our team of professionals can help you navigate the complexities of tax season, maximize your deductions, and ensure your filing is accurate and timely. Whether you're an individual or a small business owner in Rochester, NY, and Greece, NY, we’re here to help.

Call us at (585) 225-9290 or visit www.naccacpas.com to schedule your consultation today!

---

Disclaimer: This article is for informational purposes only and should not be considered as tax advice. Always consult with a tax professional, like Nacca & Capizzi, for personalized guidance based on your unique situation.

---